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

Exhibit 99.1

IVAX DIAGNOSTICS REPORTS THIRD QUARTER RESULTS

MIAMI—(BUSINESS WIRE)—November 20, 2006—IVAX Diagnostics, Inc. (AMEX:IVD) reported net revenues for the third quarter of 2006 of $4,852,000, a 3.9% increase over net revenues of $4,669,000 for the same period of 2005. IVAX Diagnostics reported a net loss of $1,268,000 for the third quarter of 2006 compared to a net loss of $1,100,000 for the third quarter of 2005. Net revenues for the nine months ended September 30, 2006 totaled $14,933,000, a decrease of $363,000, or 2.4%, from the $15,296,000 reported for the comparable period of the prior year. The net loss for the nine months ended September 30, 2006 was $2,183,000 compared with a net loss of $106,000 for the comparable period of the prior year.

Giorgio D’Urso, CEO and president of IVAX Diagnostics, said, “As previously announced, our net loss for the third quarter includes a $509,000 write-off of certain PARSEC^® System related assets. After the eventual full commercial release of our proprietary PARSEC^® System, we expect that this automated system will have a positive impact on our future operating results and on the laboratory environment that we serve. Separately, we are pleased that our hepatitis project in Italy continues to progress well and we believe that these hepatitis assays will put us in a more competitive situation in the international markets that we serve.”

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. Teva Pharmaceutical Industries Limited, through its wholly-owned IVAX Corporation subsidiary, owns approximately 72% 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^® System, including, without limitation, that thePARSEC^® Systemmay not perform as or be available when expected, that thePARSEC^® Systemmay not be a source of revenue growth for IVAX Diagnostics, that IVAX Diagnostics may not receive financial benefits or achieve improved operating results after the full commercial release of thePARSEC^® System, that the PARSEC^® System may not have a positive impact on the laboratory environment that IVAX Diagnostics serves, that IVAX Diagnostics’ international activities associated with thePARSEC^® Systemmay be impacted by the delay in the full commercial release of thePARSEC^® System, that thePARSEC^® 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, that IVAX Diagnostics may not be able to obtain 510(k) clearance from the FDA for thePARSEC^® Systemwhen expected or at all, that IVAX Diagnostics may not be successful in its marketing of thePARSEC^® System, and that customers may not integrate thePARSEC^® System into their operations as readily as expected; that IVAX Diagnostics may not successfully receive the transfer of hepatitis technology when expected or at all; that, if IVAX Diagnostics does successfully receive the transfer of hepatitis technology, then IVAX Diagnostics may not be able to manufacture its own hepatitis assays, may not be able to achieve a more competitive situation in the international markets that IVAX Diagnostics serves, and may not be able to cause its own hepatitis assays to be run in conjunction with thePARSEC^® System; that improved financial performance or results may not occur; 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 risks and factors set forth above, investors should consider the economic, competitive, governmental, technological and other risks and factors discussed in IVAX Diagnostics’ filings with the Securities and Exchange Commission, including, without limitation, in the section entitled “Risk Factors” in IVAX Diagnostics’ Annual Report on Form 10-K for the year ended December 31, 2005.

IVAX DIAGNOSTICS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Period Ended September 30,	Three months						Nine months
	2006			2005			2006			2005
Net revenues	$	4,851,743		$	4,668,555		$	14,933,117		$	15,295,605
Cost of sales		2,165,207			2,149,367			6,542,844			6,256,976
Gross profit		2,686,536			2,519,188			8,390,273			9,038,629
Operating expenses:
Selling		1,452,796			1,520,774			4,354,607			4,556,107
General and administrative		1,503,488			1,787,793			4,247,449			2,408,050
Research and development		1,022,626			395,355			1,987,364			1,259,157
Total operating expenses		3,978,910			3,703,922			10,589,420			8,223,314
Income (loss) from operations		(1,292,374	)		(1,184,734	)		(2,199,147	)		815,315
Other income:
Interest income		120,703			86,854			351,218			249,142
Other expense, net		(80,119	)	��	(6,772	)		(80,884	)		(106,141	)
Total other income, net		40,584			80,082			270,334			143,001
Income (loss) before income taxes		(1,251,790	)		(1,104,652	)		(1,928,813	)		958,316
Provision (benefit) for income taxes		15,751			(4,853	)		52,978			1,064,674
Loss before cumulative effect of change in accounting principle		(1,267,541	)		(1,099,799	)		(1,981,791	)		(106,358	)
Cumulative effect of change in accounting principle		—			—			(201,000	)		—
Net loss	$	(1,267,541	)	$	(1,099,799	)	$	(2,182,791	)	$	(106,358	)
Net loss per share, before cumulative effect of change in accounting principle
Basic and diluted	$	(0.05	)	$	(0.04	)	$	(0.07	)	$	(0.00	)
Cumulative effect of change in accounting principle, per share
Basic and diluted	$	—		$	—		$	(0.01	)	$	—
Net loss per share
Basic and diluted	$	(0.05	)	$	(0.04	)	$	(0.08	)	$	(0.00	)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
Basic		27,649,887			27,487,983			27,635,575			27,188,687
Diluted		27,649,887			27,487,983			27,635,575			27,188,687

IVAX DIAGNOSTICS, INC.

CONDENSED BALANCE SHEETS

	September 30, 2006			December 31, 2005
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	1,747,254		$	11,479,568
Marketable securities		8,150,000			122,045
Accounts receivable, net of allowances for doubtful accounts of $1,187,916 in 2006 and $973,855 in 2005		6,691,041			6,695,353
Inventories, net		5,590,330			5,608,584
Other current assets		1,257,534			1,164,890
Total current assets		23,436,159			25,070,440
Property, plant and equipment, net		2,170,007			2,213,581
Equipment on lease		444,380			585,295
Product license		1,255,936			1,255,936
Goodwill, net		6,722,725			6,722,725
Other assets		192,783			55,553
Total assets	$	34,221,990		$	35,903,530
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	870,931		$	1,190,204
Accrued license payable		1,014,440			947,920
Accrued expenses and other current liabilities		2,807,352			2,895,836
Total current liabilities		4,692,723			5,033,960
Stock option compensation liability		36,000			—
Other long-term liabilities		823,902			680,006
Total liabilities		5,552,625			5,713,966
Commitments and contingencies
Shareholders’ equity:
Common stock, $0.01 par value, authorized 50,000,000 shares, issued and outstanding 27,649,887 in 2006 and 27,623,554 in 2005		276,498			276,235
Additional paid-in capital		40,763,987			40,548,950
Accumulated deficit		(11,641,162	)		(9,458,371	)
Accumulated other comprehensive loss		(729,958	)		(1,177,250	)
Total shareholders’ equity		28,669,365			30,189,564
Total liabilities and shareholders’ equity	$	34,221,990		$	35,903,530

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