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

Exhibit 99.1

IVAX DIAGNOSTICS REPORTS THIRD QUARTER RESULTS

Profitability Achieved for the Third Consecutive Quarter

MIAMI—(BUSINESS WIRE)—November 14, 2008—IVAX Diagnostics, Inc. (AMEX:IVD) reported net revenues of $16,022,000 for the nine months ended September 30, 2008, an increase of $983,000, or 6.5%, from net revenues of $15,039,000 for the same period in 2007. Net revenues were $5,417,000 for the third quarter of 2008, an increase of $445,000, or 9.0%, from net revenues of $4,972,000 for the third quarter of 2007. Net income for the nine months ended September 30, 2008 was $661,000, compared to net loss of $8,542,000 for the same period in 2007. Net income for the third quarter of 2008 was $19,000, compared to net loss of $7,841,000 for the third quarter of 2007.

Revenues increased by $983,000 to $16,022,000 in the nine months ended September 30, 2008 from $15,039,000 in the same period of 2007, primarily due to increases in domestic net revenues as a result of volume increases in reagent sales to instrumentation customers and increases in Italian net revenues as a result of the effect of an increase in revenue of $631,000 resulting from fluctuations of the United States dollar relative to the Euro.

The $9,203,000 improvement in net income for the first nine months of 2008 and the $7,860,000 improvement in net income for the third quarter of 2008, compared to the same periods of 2007, were primarily due to one-time charges taken in 2007, improvements in revenue and gross profit, and reductions in operating expenses. The results for the three and nine month periods ended September 30, 2007 included a write-off of $5,852,000 of goodwill related to our subsidiaries located in Italy and Arkansas and a write-off of $1,674,000 of PARSEC^® System related assets as a result of the decision to change our strategic direction and place any further development of the PARSEC^® System on hold indefinitely.

Paul Kennedy, the Company’s Chairman of the Board of Directors, Chief Executive Officer and President, said, “I am very happy to see a third consecutive quarter in which IVAX Diagnostics has achieved a positive bottom line. This is a great achievement when we consider that the third quarter included the impact of the general reduction in business activity during the traditional summer vacation months in Europe and, in particular, Italy.” Mr. Kennedy continued, “The implementation of our previously announced plans to contain expenses, which had begun in the fourth quarter of 2007, has directly contributed to a reduction in all categories of operating expenses in the first nine months and third quarter of 2008 compared to the same periods of 2007, particularly at our subsidiary in Italy. As we continue to look forward to future growth opportunities, we are encouraged by our strong balance sheet which remains debt-free.”

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.

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’ efforts to contain expenses may not result in further reductions in expenses; that IVAX Diagnostics may not achieve revenue or income growth; that IVAX Diagnostics may not achieve improved financial performance on a sustained basis, or at all; that IVAX Diagnostics may not achieve organic growth; that IVAX Diagnostics may not identify or consummate acquisitions of businesses or products; that IVAX Diagnostics may not develop additional strategic business or scientific relationships; that, in the event IVAX Diagnostics consummates acquisitions of businesses or products or develops additional strategic business or scientific relationships, any such acquisitions or relationships may not be successful or otherwise result in improved financial performance for IVAX Diagnostics; 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.

RESULTS OF OPERATIONS

(Unaudited)

Period Ended September 30,	Three months					Nine months
	2008		2007			2008		2007
Net revenues	$	5,416,859	$	4,971,764		$	16,022,055	$	15,039,118
Cost of sales		2,173,309		2,209,643			6,334,910		6,309,472
Gross profit		3,243,550		2,762,121			9,687,145		8,729,646
Operating expenses:
Selling		1,259,097		1,355,702			3,740,292		4,083,135
General and administrative		1,550,332		1,738,392			4,146,296		4,770,310
Research and development		428,374		532,653			1,316,799		1,612,775
Write-off of PARSEC® assets		—		1,673,824			—		1,673,824
Impairment of goodwill		—		5,852,435			—		5,852,435
Total operating expenses		3,237,803		11,153,006			9,203,387		17,992,479
Income (loss) from operations		5,747		(8,390,885	)		483,758		(9,262,833	)
Other income:
Interest income		25,540		97,257			165,345		276,723
Other income, net		18,965		18,542			108,372		81,672
Total other income, net		44,505		115,799			273,717		358,395
Income (loss) before income taxes		50,252		(8,275,086	)		757,475		(8,904,438	)
(Benefit) provision for income taxes		31,289		(434,504	)		96,136		(362,839	)
Net income (loss)	$	18,963	$	(7,840,582	)	$	661,339	$	(8,541,599	)
Net income (loss) per share
Basic and diluted	$	0.00	$	(0.28	)	$	0.02	$	(0.31	)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
Basic		27,649,887		27,649,887			27,649,887		27,649,887
Diluted		27,649,887		27,649,887			27,649,887		27,649,887

IVAX DIAGNOSTICS, INC.

CONDENSED BALANCE SHEETS

(Unaudited)

	September 30, 2008			December 31, 2007
ASSETS
Current assets:
Cash and cash equivalents	$	2,605,402		$	3,900,564
Marketable debt securities		—			1,925,000
Accounts receivable, net of allowances for doubtful accounts of $837,482 in 2008 and $1,052,797 in 2007		6,950,654			6,287,654
Inventories, net		4,629,944			4,013,312
Other current assets		476,552			374,579
Total current assets		14,662,552			16,501,109
Property, plant and equipment, net		1,988,414			1,845,292
Marketable securities		3,760,975			4,100,000
Equipment on lease, net		139,684			163,113
Product license		1,242,936			1,242,936
Goodwill, net		870,290			870,290
Other assets		1,025,597			1,045,592
Total assets	$	23,690,448		$	25,768,332
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	846,479		$	1,217,408
Accrued license payable		144,446			147,184
Accrued expenses and other current liabilities		3,368,097			5,404,372
Total current liabilities		4,359,022			6,768,964
Other long-term liabilities:
Deferred tax liabilities		222,327			174,708
Other long-term liabilities		888,847			850,177
Total other long-term liabilities		1,111,174			1,024,885
Commitments and contingencies
Shareholders’ equity:
Common stock, $0.01 par value, authorized 50,000,000 shares, issued and outstanding 27,649,887 in 2008 and 2007		276,498			276,498
Capital in excess of par value		40,993,429			40,910,677
Accumulated deficit		(22,548,602	)		(23,209,941	)
Accumulated other comprehensive income (loss)		(501,073	)		(2,751	)
Total shareholders’ equity		18,220,252			17,974,483
Total liabilities and shareholders’ equity	$	23,690,448		$	25,768,332

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