ERBA Diagnostics (ERB) 8-K Ivax Diagnostics Reports Third Quarter 2005 Results

Exhibit 99.1

IVAX DIAGNOSTICS REPORTS THIRD QUARTER 2005 RESULTS

YTD Revenue Increases 6.8% over Prior Year

MIAMI—(BUSINESS WIRE)—November 10, 2005—IVAX Diagnostics, Inc. (AMEX:IVD) reported net revenues for the third quarter of 2005 of $4,669,000, a 1.9% increase over net revenues of $4,583,000 for the same period of 2004. IVAX Diagnostics reported a net loss of $1,100,000 for the third quarter of 2005 compared to a net loss of $94,000 for the third quarter of 2004. Net revenues for the nine months ended September 30, 2005 totaled $15,296,000, an increase of $975,000, or 6.8%, from the $14,321,000 reported in the prior year comparable period. The net loss for the nine months ended September 30, 2005 was $106,000 compared with net income of $130,000 during the comparable period of the prior year. Net losses for the three and nine months ended September 30, 2005 include the effect of the previously disclosed employment compensation expense and related payroll taxes of approximately $580,000 resulting from the July 22, 2005 cancellation of certain stock options.

Giorgio D’Urso, CEO and president of IVAX Diagnostics, said, “Our third quarter is traditionally our weakest quarter due to the reduction in business activity in Europe during the traditional summer vacation months. Nevertheless, our increase in research and development spending and our investments to improve our technical and quality systems reflect our optimism about future operating results once our PARSEC™ System is fully launched in the United States and Europe. We have obtained purchase orders from a number of premier customers and expect this new automated system to be highly successful. We anticipate making deliveries in the United States by the end of this year. We are also on track with our previously announced technology transfer agreement, pursuant to which we expect to be able to manufacture a full line of hepatitis products and related raw materials at our facility in Europe. We expect this hepatitis panel of assays to be launched in the second quarter of 2006 and to be available to all of the markets we serve outside the United States. Industry analysts estimate the worldwide market for hepatitis testing to be more than $2 billion. We believe that the ability to produce and distribute our own internally-produced kits will be a growth initiative for IVAX Diagnostics.”

Phillip Frost, M.D., IVAX Diagnostics’ Chairman, said, “We are excited about making our first deliveries of PARSEC™ System instruments in the United States later this quarter and believe this new automated system can be of major importance.”

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 Systemmay not be available when or perform as expected, that

IVAX Diagnostics may not be successful in its marketing of thePARSEC^TM System, that customers may not integrate thePARSEC^TM System into their operations as readily as expected, that IVAX Diagnostics may not achieve improved operating results once thePARSEC^TM System is fully launched in the United States and Europe, and that thePARSEC^TM System may not be of major importance to IVAX Diagnostics or its customers; risks and uncertainties regarding hepatitis products and raw materials, including, without limitation, that IVAX Diagnostics may not be able to manufacture a full line of its own hepatitis products or related raw materials, that IVAX Diagnostics may not be able to sell hepatitis products when or where expected, and that IVAX Diagnostics may not experience growth or expansion as a result of producing and distributing its own internally-produced hepatitis kits; that there can be no assurance that research and development spending or investments to improve technical and quality systems will yield successful results; 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. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Period Ended September 30,	Three months						Nine months
	2005			2004			2005			2004
Net revenues	$	4,668,555		$	4,582,855		$	15,295,605		$	14,320,744
Cost of sales		2,149,367			1,938,441			6,256,976			5,857,632
Gross profit		2,519,188			2,644,414			9,038,629			8,463,112
Operating expenses:
Selling		1,520,774			1,488,862			4,556,107			4,250,732
General and administrative		1,787,793			1,080,540			2,408,050			3,345,257
Research and development		395,355			327,039			1,259,157			961,869
Total operating expenses		3,703,922			2,896,441			8,223,314			8,557,858
Income (loss) from operations		(1,184,734	)		(252,027	)		815,315			(94,746	)
Other income:
Interest income		86,854			53,433			249,142			137,566
Other income (expense), net		(6,772	)		77,761			(106,141	)		103,573
Total other income, net		80,082			131,194			143,001			241,139
Income (loss) before income taxes		(1,104,652	)		(120,833	)		958,316			146,393
Provision for (benefit from) income taxes		(4,853	)		(26,757	)		1,064,674			16,792
Net income (loss)	$	(1,099,799	)	$	(94,076	)	$	(106,358	)	$	129,601
Basic earnings (loss) per common share	$	(.04	)	$	0.00		$	0.00		$	0.00
Diluted earnings (loss) per common share	$	(.04	)	$	0.00		$	0.00		$	0.00
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
Basic		27,487,983			27,019,829			27,188,687			27,448,896
Diluted		27,487,983			27,019,829			27,188,687			28,253,534

IVAX DIAGNOSTICS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

	September 30, 2005			December 31, 2004
	(Unaudited)
ASSETS
Current assets:
Cash, cash equivalents and marketable securities	$	12,238,642		$	12,142,885
Accounts receivable, net of allowances for doubtful accounts of $1,058,635 in 2005 and $3,080,952 in 2004		6,617,365			7,739,548
Inventories		5,093,695			5,143,611
Other current assets		1,124,774			2,203,473
Total current assets		25,074,476			27,229,517
Property, plant and equipment, net		2,105,566			2,258,818
Equipment on lease		610,904			719,277
Product license		1,278,190			—
Goodwill, net		6,713,409			6,632,986
Other assets		53,999			73,627
Total assets	$	35,836,544		$	36,914,225
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	952,921		$	1,207,042
Accrued license payable		962,081			—
Accrued expenses and other current liabilities		2,663,165			3,029,820
Total current liabilities		4,578,167			4,236,862
Other long-term liabilities		595,485			631,391
Commitments and contingencies
Shareholders’ equity:
Common stock, $0.01 par value, authorized 50,000,000 shares, issued and outstanding 27,601,976 in 2005 and 27,019,829 in 2004		276,019			270,198
Capital in excess of par value		40,546,166			41,010,041
Accumulated deficit		(9,055,202	)		(8,948,844	)
Accumulated other comprehensive loss		(1,104,091	)		(285,423	)
Total shareholders’ equity		30,662,892			32,045,972
Total liabilities and shareholders’ equity	$	35,836,544		$	36,914,225

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