ERBA Diagnostics (ERB) 8-K Releases Fourth Quarter and Full Year 2007 Results

Exhibit 99.1

IVAX DIAGNOSTICS

RELEASES FOURTH QUARTER AND FULL YEAR 2007 RESULTS

MIAMI—(BUSINESS WIRE)—March 31, 2008—IVAX Diagnostics, Inc. (AMEX:IVD) reported net revenues for the year ended December 31, 2007 of $19,976,000, an increase of 2.3% compared to net revenues of $19,523,000 for the year ended December 31, 2006. For the full year 2007, net loss was $10,434,000, compared to net loss of $2,809,000 for the full year 2006. Net revenues for the fourth quarter of 2007 were $4,937,000, an increase of 7.6% compared to net revenues of $4,590,000 from the same period of the previous year. Net loss for the fourth quarter of 2007 was $1,892,000, compared to net loss of $626,000 for the fourth quarter of 2006.

Kevin Clark, acting Chief Executive Officer and Chief Operating Officer of IVAX Diagnostics, said, “Although net loss increased significantly in 2007 from 2006, this increase was primarily the result of the significant changes we undertook during 2007 in an effort to improve our cash flow and increase our stockholders’ value in the future. Specifically, net loss in 2007 included the tax-affected impact of $9,064,000 of previously reported one-time third quarter 2007 non-cash write-offs and a one-time fourth quarter 2007 accrual for severance related costs, while net loss in 2006 included the impact of previously reported one-time non-cash write-offs and adjustments totaling $710,000. The previously reported one-time third quarter 2007 non-cash write-offs were comprised of goodwill totaling $5,852,000 and PARSEC System related assets totaling $1,674,000, and the one-time severance related costs of $1,998,000 included in general and administrative expenses were incurred during the fourth quarter of 2007 in connection with management and other personnel changes. The previously reported third quarter 2007 non-cash write-off of PARSEC^® System related assets and the fourth quarter 2007 incurrence of severance related costs were each related to our previously announced change in strategic direction to focus on the development of the Mago^® 4 as a platform for marketing our kits and to place any further development of the PARSEC^® System on hold indefinitely. Although this change in strategic direction resulted in significant non-cash write-offs and other non-recurring expenses during 2007, we believe that we are now better positioned to focus on our core business and to achieve profitability in the future, as reflected by our improved fourth quarter results excluding one-time charges. We expect that our decision to focus on the development of our proprietary Mago^® 4 platform, the upgraded version of our Mago^® Plus instrument, will allow us to broaden our product portfolio of diagnostic assays and continue to deliver to our customers the technological innovation that they expect from us. We also expect to be able to leverage our refocused efforts by selectively partnering on other new projects with other established diagnostics industry companies. Now that our change in strategic direction is behind us, we intend to continue to build upon our core business and strengthen our position.”

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: that IVAX Diagnostics may not successfully implement the change in its strategic direction to focus on the development of theMago® 4 as a platform for marketing its kits and to place any further development of thePARSEC® System on hold indefinitely; that IVAX Diagnostics may not achieve improved cash flow or increased stockholders’ value as a result of its implementation of the change in strategic direction described above; that the implementation of the change in strategic direction described above will not successfully position IVAX Diagnostics to focus on its core business or achieve profitability when expected or at all; risks and uncertainties regarding thePARSEC® System, including, without limitation, that thePARSEC® System may not ever be available, and that IVAX Diagnostics’ international activities associated with thePARSEC® System will be adversely impacted by the change in strategic direction described above; risks and uncertainties regarding theMago® 4, including, without limitation, that theMago® 4 may not perform as or be available when expected or at all, that IVAX Diagnostics may not be able to obtain all necessary regulatory approvals for theMago® 4 when expected or at all, that IVAX Diagnostics may not broaden its product portfolio of diagnostic assays or continue to deliver to its customers the technological innovation that they expect from IVAX Diagnostics as a result of its focus on the development of theMago® 4, that IVAX Diagnostics may not be successful in its marketing of theMago® 4, that customers may not integrate theMago® 4 into their operations as readily as expected, and that sales and reagent rentals of theMago® 4 may adversely affect sales and reagent rentals of theMago® Plus; that IVAX Diagnostics may not be able to successfully leverage its refocused efforts by selectively partnering on other new projects with other established diagnostics industry companies; in the event IVAX Diagnostics partners on other new projects with other established diagnostics industry companies, that any such partnerships may not be successful or otherwise result in improved financial performance or results for IVAX Diagnostics; that IVAX Diagnostics will not successfully build upon its core business and strengthen its position; 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 uncertainties set forth above, investors should consider the economic, competitive, governmental, technological and other risks and uncertainties discussed in IVAX Diagnostics’ filings with the Securities and Exchange Commission, including, without limitation, the risks and uncertainties discussed under the heading “Risk Factors” in such filings.

IVAX DIAGNOSTICS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	Three Months						Twelve Months
Period Ended December 31,	2007			2006			2007			2006
NET REVENUE	$	4,936,752		$	4,590,355		$	19,975,870		$	19,523,471
COST OF SALES		2,089,927			1,915,011			8,399,399			8,457,855
Gross profit		2,846,825			2,675,344			11,576,471			11,065,616
OPERATING EXPENSES:
Selling		1,402,397			1,529,004			5,485,532			5,883,610
General and administrative		2,959,854			1,404,943			7,730,164			5,652,392
Research and development		539,339			416,607			2,152,114			1,894,971
Write-off of PARSEC® related assets		—			—			1,673,824			509,000
Impairment of goodwill		—			—			5,852,435			—
Total operating expenses		4,901,590			3,350,554			22,894,069			13,939,973
Loss from operations		(2,054,765	)		(675,210	)		(11,317,598	)		(2,874,357	)
OTHER INCOME, NET:
Interest income		158,852			112,664			435,575			463,882
Other income (expense), net		37,843			36,504			119,515			(44,380	)
Total other income, net		196,696			149,168			555,090			419,502
Loss before income taxes		(1,858,070	)		(526,042	)		(10,762,508	)		(2,454,855	)
INCOME TAX PROVISION (BENEFIT)		34,070			100,400			(328,769	)		153,379
LOSS BEFORE CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE		(1,892,140	)		(626,442	)		(10,433,739	)		(2,608,234	)
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE		—			—			—			(201,000	)
Net loss	$	(1,892,140	)	$	(626,442	)	$	(10,433,739	)	$	(2,809,234	)
Loss per share, before cumulative effect of change in accounting principle
Basic and diluted	$	(0.07	)	$	(0.02	)	$	(0.38	)	$	(0.09	)
Cumulative effect of change in accounting principle, per share
Basic and diluted	$	—		$	—		$	—		$	(0.01	)
Loss per share
Basic and diluted	$	(0.07	)	$	(0.02	)	$	(0.38	)	$	(0.10	)
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic		27,649,887			27,649,887			27,649,887			27,639,221
Diluted		27,649,887			27,649,887			27,649,887			27,639,221

IVAX DIAGNOSTICS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2007 and 2006

	2007			2006
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	3,900,564		$	1,995,730
Marketable securities		1,925,000			6,650,000
Accounts receivable, net of allowances for doubtful accounts of $1,052,797 and $1,093,070, respectively		6,287,654			7,489,272
Inventories, net		4,013,312			5,557,528
Other current assets		374,579			1,183,571
Total current assets		16,501,109			22,876,101
PROPERTY, PLANT AND EQUIPMENT:
Land		352,957			352,957
Buildings and improvements		3,039,902			2,985,081
Machinery and equipment		2,534,084			2,825,404
Furniture and fixtures		1,887,369			1,788,170
		7,814,312			7,951,612
Less – Accumulated depreciation		(5,969,020	)		(5,650,032	)
		1,845,292			2,301,580
OTHER ASSETS:
Marketable securities		4,100,000			—
Goodwill		870,290			6,722,725
Equipment on lease, net		163,113			386,762
Product license		1,242,936			1,255,936
Other		1,045,592			163,998
		7,421,931			8,529,421
Total assets	$	25,768,332		$	33,707,102
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	1,217,408		$	935,896
Accrued license payable		147,184			526,800
Accrued expenses		5,404,372			3,048,285
Total current liabilities		6,768,964			4,510,981
OTHER LONG-TERM LIABILITIES:
Deferred tax liabilities		174,708			572,089
Other long-term liabilities		850,177			885,890
Total other long-term liabilities		1,024,885			1,457,979
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY:
Common stock, par value $0.01, authorized 50,000,000 shares, issued and outstanding 27,649,887 in 2007 and 2006		276,498			276,498
Additional paid-in capital		40,910,677			40,781,825
Accumulated deficit		(23,209,941	)		(12,776,202	)
Accumulated other comprehensive loss		(2,751	)		(543,979	)
Total shareholders’ equity		17,974,483			27,738,142
Total liabilities and shareholders’ equity	$	25,768,332		$	33,707,102

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