Imagenetix 8-K Imagenetix, Inc. Reports Second Quarter 2010 Profits

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FOR IMMEDIATE RELEASE	Contact  Imagenetix Investor Relations	William P. Spencer
	(858)385-2797	Chief Executive Officer Imagenetix, Inc. Tel: (858) 674-8455

IMAGENETIX, INC. REPORTS SECOND QUARTER 2010 PROFITS

·Second Quarter Net Income Increases by 178% from Prior Year

·Second Quarter Revenue Increases to $1,901,000 from First Quarter’s $1,702,000

·Quarterly Income Per Share Equals $0.05 vs. $0.02 for Prior Year

San Diego, CA***November 10, 2009***Imagenetix, Inc. (OTCBB:IAGX) announced today results for the three and six months ended September 30, 2009. Net sales decreased 28% for the second quarter of fiscal year 2010 to $1,901,000 from $2,656,000 for the same period of last year.   The second quarter revenue is a  12% increase over the $1,702,000 reported for the first quarter of fiscal year 2010.  For the six months ended September 30, 2009, net sales decreased 11% to $3,603,000 from $4,051,000 for the same period of last year.

Net income for the second quarter was $553,000 or $.05 per share compared to a net profit for the same period of the prior fiscal year of $199,000 or $0.02 per share.  The current fiscal year period was positively impacted by a one time buy out agreement of $1,250,000.  Net income for the six months ended September 30, 2009, was $138,000 or $0.01 per share compared to $786,000 or $0.07 per share for the same period of last year.

Commenting on the results of the second quarter, Mr. William Spencer, Imagenetix Chief Executive Officer said, “We once again are encouraged by the increase in sales of our own branded product, InflameAway Celadrin, which continues to be well received in the food, drug and mass market segments.  Also, we were pleased to introduce BioGuard, an immune boosting probiotic for the ear, nose and throat, into the largest club store warehouse during the quarter and the recent issuance of a patent for our early stage drug candidate, 1-TDC, to address periodontal diseases.  We will continue to expand TV advertising to increase awareness of both InflameAway Celadrin and BioGuard.   We anticipate this marketing program for the mass market segment to continue to result in improved sales.  Our cash position was bolstered in early October as the result of entering into a supply buyout agreement with a customer.”

About Imagenetix

Imagenetix, based in San Diego, California, is an innovator of scientifically tested, natural-based, proprietary, bioceutical products developed to enhance human health on a global basis.  Imagenetix develops and formulates propriety over-the-counter topical creams, skincare products and nutritional supplements to be marketed globally through multiple channels of distribution.  In addition, the company develops patentable compounds for entering into licensing agreements with pharmaceutical partners.  Imagenetix is the creator of Inflame Away®-Celadrin®.  Please visit, www.celadrin.com, www.bioguardhealth.com or www.imagenetix.net.

Certain matters in this news release are forward-looking statements which are subject to risks and uncertainties that could cause actual results to vary materially from those projected.  Such risks and uncertainties include, but are not limited to, adverse fluctuations in future operating results due to a number of economic, competitive, and other factors, including, among other things, the size and timing of customer contracts, new or increased competition, changes in market demand, and seasonality of purchases of the company's products and services.  Additional information with respect to these and other factors, which could materially affect the company and its operations, are included in the company’s SEC filings, including its Form 10-K for the year ended March 31, 2009.

Imagenetix, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
	Three Months Ended						Six Months Ended
	September 30,						September 30,
	2009			2008			2009			2008
Net sales	$	1,901		$	2,656		$	3,603		$	4,051
Cost of sales		1,040			1,541			2,095			2,361
Gross profit		861			1,115			1,508			1,690
Gross profit percent		45.3	%		42.0	%		41.9	%		41.7	%
Operating expenses:
General and administrative		575			420			1,383			1,025
Payroll expense		269			221			523			593
Consulting expense		294			243			575			589
Operating expenses		1,138			884			2,481			2,207
Operating income (loss)		(277	)		231			(973	)		(517	)
Other income		1			10			2			17
Settlement income		1,250			-			1,250			1,785
Interest expense		-			-			(2	)		(1	)
Income before income taxes		974			241			277			1,284
Income tax expense		421			42			139			498
Net income	$	553		$	199		$	138		$	786
Income per share:
Basic	$	0.05		$	0.02		$	0.01		$	0.07
Diluted	$	0.05		$	0.02		$	0.01		$	0.07
Weighted average common shares outstanding:
Basic		11,011			10,984			11,011			10,972
Diluted		11,059			11,012			11,096			11,007

Imagenetix, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
	September 30,		March 31,
	2009		2009
Assets:
Current assets:
Cash and cash equivalents	$	545	$	1,226
Accounts receivable, net		1,088		1,096
Other receivable		1,250		-
Inventories, net		1,098		1,337
Prepaid expenses and other current assets		225		109
Deferred tax asset		400		535
Total current assets		4,606		4,303
Property and equipment, net		99		116
Long-term prepaid expenses		24		30
Other assets		121		134
Total assets	$	4,850	$	4,583
Liabilities and stockholders' equity:
Current liabilities:
Accounts payable	$	497	$	274
Accrued liabilities		83		81
Income tax payable		-		70
Customer deposits		37		59
Contract payable		-		43
Short term license payable		-		3
Total current liabilities		617		530
Stockholders' equity		4,233		4,053
Total liabilities and stockholders' equity	$	4,850	$	4,583