Epicore BioNetworks Inc. Strong Start to Fiscal Year 2012

for the period ended 30 September 2011

CALGARY, Dec. 28, 2011 /PRNewswire/ - A sales revenue increase of 9% over prior year quarter one (Q1) to $1.11 million set a Company quarter one record. The demand for shrimp remained high throughout the quarter, as it has done for much of calendar 2011. Supply shortages caused by disease and natural disasters have pushed shrimp prices higher. Higher shrimp prices increased the demand for Epicore's productivity enhancing products. The Epicore sales team and our distributors continued to add new customers and to pursue new applications for Epicore products. Epicore continued a major initiative to increase its science resources, which should position the Company for significant future growth and increase the reliability of its manufacturing operations. Some Q1 highlights were:

• Increased sales 9% versus prior year Q1 to $1.1 million.
• Increased gross profit 1% versus prior year Q1 to $0.6 million.
• Generated another year of positive net income ($0.06 million vs. $0.09 million in prior year Q1).
• Achieved basic and diluted earnings per share of $0.003, down from $0.004 in prior year Q1.
• Increased shareholders' equity 2% in the quarter to $4.2 million.
• Increased cash to $1.8 million (an 8% increase in the quarter and a 51% over prior year Q1).
• Completed IFRS implementation and took advantage of the extended filing deadline for Q1.

Gross profit grew 1% due to the sales increase. Because of sales mix Epicore gross margin (gross profit as a percentage of sales) decreased. Operational expenses increased by 18% due to inflation, higher marketing travel expense, higher financial expense and one-time expense related to strategic initiatives.  Quarter one fiscal 2012 results include a US federal income tax expense of $0.04 million, along with $0.02 million for New Jersey and Ecuadorian taxes. Net income of $0.06 million was lower than fiscal 2011 because of lower gross margin and higher operating expenses, as the following results show (rounded to thousands in US dollars):

Cash at the end of September was $1.8 million, an increase of 8% over prior year quarter four. With these funds, expected sales revenue growth and continued relatively low operating costs, management expects there will be sufficient cash to meet the fiscal year's financial requirements, to fund expansion of aquaculture and environmental remediation marketing efforts and to pursue new strategies for enhancing shareholder value.  In support of its growth strategy, the Company anticipates additional expenditure during fiscal 2012 in property, plant and equipment, through the addition of leased capital equipment and enhancements to its production facility in New Jersey, and in product development through its ongoing R&D programs. This is expected to be financed by a combination of the Company's cash reserves, continued positive earnings and third-party financing.

The financial statements of the company have been prepared in accordance with International Financial Reporting Standards. Epicore BioNetworks Inc. is a public corporation with a registered office in Calgary, Alberta, Canada and with shares listed on the TSX Venture Exchange (symbol EBN).  [Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.]

This press release contains forward-looking statements that involve significant risks and uncertainties.  The actual results, performance or achievements of the company might differ materially from the results, performance or achievements of the company expressed or implied by such forward-looking statements.  Such forward-looking statements include, without limitation, those regarding the future growth of the Company, expected improvements in the quality and reliability of manufacturing operations, acceleration of the Company's penetration into new business areas, the development plans of the company, the expected timing and results of such development and the expectation by management that there will be sufficient cash to meet the fiscal year's financial requirements. We can provide no assurance that such development will proceed as currently anticipated, that the expected timing or results of such development will be realized or that the company will be able to generate sufficient cash to meet its obligations. We are subject to various risks, including the uncertainties of product development, markets for our products and regulatory review, our need for additional capital to fund our operations, our reliance on collaborative partners, our history of losses, and other risks inherent in the biotechnology industry.

SOURCE Epicore BioNetworks Inc.