ERBA Diagnostics (ERB) 8-K Ivax Diagnostics Reports Second Quarter Results

EXHIBIT 99.1

IVAX DIAGNOSTICS REPORTS SECOND QUARTER RESULTS

Achieves Record Revenues for Six Months

HIV to be added to PARSEC^™ System Menu

MIAMI—(BUSINESS WIRE)—August 12, 2005—IVAX Diagnostics, Inc. (AMEX:IVD) reported second quarter 2005 net revenues of $5,244,000, an increase of $238,000, or 4.8%, over the same period of the previous year. Net income for the second quarter of 2005 was $155,000, compared to net income of $205,000 for the second quarter of 2004. Combined revenues for the first two quarters of 2005 were higher than any previous six-month period in the Company’s history.

Giorgio D’Urso, CEO and president of IVAX Diagnostics, said, “We are pleased to see revenues increase over the same quarter from last year and to have achieved record revenues for the first six months of this year. We also made significant improvements in our gross profit margin which rose to 62.4% during the quarter, a 3.1 percentage point increase from the same quarter of the previous year. Our net income for the quarter was slightly lower than the same quarter of last year, largely attributable to our making significant investments in preparing for the introduction of our new PARSEC^™ System. We had a very positive response to this new system during our attendance at the 2005 American Association for Clinical Chemistry (AACC) Annual Meeting and Clinical Lab Exposition that was held in Orlando, Florida July 26-28. We have already received our first orders for this system in advance of its availability later this year. We expect to release the PARSEC^™ System with our existing autoimmune and infectious disease test menu during the third quarter in Europe and during the fourth quarter in the United States. As previously announced, hepatitis assays will also be offered on the system and we now expect to offer an HIV assay as well. The world HIV diagnostics and monitoring market was estimated to be $2.3 billion in 2004 and growing at an annual rate of 17.6%. This expanded testing menu will increase our competitive position and give us access to a significantly larger global market. We believe that our well-positioned, proprietary diagnostic testing systems will enable us to achieve significant future growth.”

Phillip Frost, M.D., IVAX Diagnostics’ Chairman, said, “I am pleased with the continued progress of IVAX Diagnostics. We are looking forward to expanding our business as a result of the introduction of the PARSEC^™ System and the augmentation of our offering of diagnostic tests and widening geographic distribution of our products. I remain confident of the future success of the company.”

About IVAX Diagnostics, Inc.

IVAX Diagnostics, Inc., headquartered in Miami, Florida, develops, manufactures and markets proprietary diagnostic reagents, instrumentation, and software in the United States and Italy through its three subsidiaries: Diamedix Corporation, Delta Biologicals S.r.l., and ImmunoVision, Inc. IVAX Corporation (AMEX:IVX, LSE:IVX.L) owns approximately 74% of IVAX Diagnostics, Inc.

Except for the historical matters contained herein, statements in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are

cautioned that forward-looking statements involve risks and uncertainties that may affect the business and prospects of IVAX Diagnostics, Inc., including, without limitation: risks and uncertainties regarding thePARSEC^TM System, including, without limitation, that thePARSEC^TM System may not perform as or be available when expected, that the PARSEC^TM System may not generate a significant benefit for IVAX Diagnostics, that thePARSEC^TM System may not be a factor in the future growth of IVAX Diagnostics or in allowing it to expand its business beyond its current range of autoimmune and infectious disease assays, including, without limitation, its ability to offer hepatitis and HIV assays, that thePARSEC^TM System may not provide IVAX Diagnostics with distinct competitive advantages, that IVAX Diagnostics may not be successful in its marketing of thePARSEC^TM System or improving its market presence, and that customers may not integrate thePARSEC^TM System into their operations as readily as expected; that IVAX Diagnostics may not achieve the introduction of thePARSEC^™ System, the augmentation of its offering of diagnostic tests and the widening geographic distribution of its products and as a result may not cause its business to expand; that profitability may not be maintained; that improved financial performance or results may not occur; that IVAX Diagnostics may not experience internal or external growth; and other risks and uncertainties that may cause results to differ materially from those set forth in the forward-looking statements. In addition to the risk factors set forth above, investors should consider the economic, competitive, governmental, technological and other factors discussed in IVAX Diagnostics’ filings with the Securities and Exchange Commission.

IVAX DIAGNOSTICS, INC.

RESULTS OF OPERATIONS

(Unaudited)

Period Ended June 30,	Three months					Six months
	2005			2004		2005			2004
Net revenues	$	5,244,439		$	5,005,699	$	10,627,050		$	9,737,889
Cost of sales		1,971,370			2,035,932		4,107,609			3,919,191
Gross profit		3,273,069			2,969,767		6,519,441			5,818,698
Operating expenses:
Selling		1,521,876			1,362,005		3,035,333			2,761,870
General and administrative		1,158,157			1,179,166		620,257			2,264,717
Research and development		469,033			316,464		863,802			634,830
Total operating expenses		3,149,066			2,857,635		4,519,392			5,661,417
Income from operations		124,003			112,132		2,000,049			157,281
Other income:
Interest income		93,027			42,133		162,288			84,133
Other income (expense), net		(35,126	)		75,760		(99,369	)		25,812
Total other income, net		57,901			117,893		62,919			109,945
Income before provision for income taxes		181,904			230,025		2,062,968			267,226
Provision for income taxes		26,521			25,421		1,069,527			43,549
Net income	$	155,383		$	204,604	$	993,441		$	223,677
Basic earnings per common share	$	0.01		$	0.01	$	0.04		$	0.01
Diluted earnings per common share	$	0.01		$	0.01	$	0.04		$	0.01
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
Basic		27,053,105			27,631,155		27,036,559			27,651,345
Diluted		28,062,254			28,446,942		28,012,097			28,465,373

IVAX DIAGNOSTICS, INC.

CONDENSED BALANCE SHEETS

	June 30, 2005			December 31, 2004
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	3,303,247		$	7,492,885
Marketable securities		10,475,542			4,650,000
Accounts receivable, net of allowances for doubtful
Accounts of $1,061,832 in 2005 and $3,080,952 in 2004		6,857,085			7,739,548
Inventories		4,936,146			5,143,611
Other current assets		1,182,291			2,203,473
Total current assets		26,754,311			27,229,517
Property, plant and equipment, net		2,119,103			2,258,818
Equipment on lease		502,543			719,277
Product license		1,278,190			—
Goodwill, net		6,709,093			6,632,986
Other assets		56,441			73,627
Total assets	$	37,419,681		$	36,914,225
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	845,314		$	1,207,042
Accrued license payable		968,640			—
Accrued expenses and other current liabilities		2,516,503			3,029,820
Total current liabilities		4,330,457			4,236,862
Other long-term liabilities		590,734			631,391
Commitments and contingencies
Shareholders’ equity:
Common stock, $0.01 par value, authorized 50,000,000 shares, issued and outstanding 27,102,579 in 2005 and 27,019,829 in 2004		271,025			270,198
Capital in excess of par value		41,257,809			41,010,041
Accumulated deficit		(7,955,403	)		(8,948,844	)
Accumulated other comprehensive loss		(1,074,941	)		(285,423	)
Total shareholders’ equity		32,498,490			32,045,972
Total liabilities and shareholders’ equity	$	37,419,681		$	36,914,225

Contact:	Duane M. Steele
	IVAX Diagnostics, Inc.
	305-324-2338
	www.ivaxdiagnostics.com