Exhibit 99
| NEWS BULLETIN | HEMAGEN(R)DIAGNOSTICS, INC.
9033 Red Branch Road, Columbia, MD 21045 |
AT THE COMPANY:
William P. Hales, President & CEO
(443) 367-5500 Tel.
(443) 367-5527 Fax
| |
|---|
FOR IMMEDIATE RELEASE
July 28, 2006 | OTC: HMGN.OB |
HEMAGEN DIAGNOSTICS, INC. ANNOUNCES GAIN ON SALE OF BALTIMORE PROPERTY,
BOOKS APPROXIMATELY $1 MILLION IN CASH ON BALANCE SHEET
COLUMBIA, MD — Hemagen Diagnostics, Inc. (OTC: HMGN.OB) a biotechnology company that develops, manufactures, and markets more than 150 FDA-cleared proprietary medical diagnostic test kits, today announced the sale of a manufacturing building that was purchased in June 2005. The building was purchased for $800,000 plus regular and customary expenses and was sold in July 2006 for $1,800,000, less expenses. As a result of the sale, the Company will record a gain in the fourth quarter of 2006.
The building was originally purchased to house the company’s headquarters, to combine certain manufacturing processes, and to provide additional space for expansion and acquisition.
William P. Hales, President and CEO, said, “We were pleased to be able to sell our building and to realize a substantial profit on the sale. Likewise, we also expect to be able to achieve our operational goals in our current leased space.
In recording this transaction, we eliminated approximately $665,000 in short-term liabilities related to the construction financing and recorded approximately $1 million dollars in additional cash to the balance sheet. This transaction will significantly improve the company’s current ratios and working capital, which were impacted by the loan on the building and the use of working capital for the building. We continue to focus on improving our operations, increasing revenues through core growth and containing costs. We remain focused on our number one goal of building shareholder value and positioning the company for sustained profitability.”
HemagenDiagnostics,Inc.,isabiotechnologycompanythatdevelops, manufactures,andmarketsmorethan150FDA-clearedproprietarymedical diagnostictestkits.Hemagenhasthreedifferentproductlines.TheVirgo® productlineofdiagnostictestkitsisusedtoaidinthediagnosisofcertain autoimmuneandinfectiousdiseases,usingELISA,Immunoflourescence,and hemagglutinationtechnology.Hemagenmanufacturesandmarketsacompletelineof clinicalchemistryreagentsthroughitswhollyownedsubsidiaryReagents Applications,Inc.,underthebrandnameRaichem,aswellasundervariousOEM arrangements.Inaddition,HemagenmanufacturesandsellstheAnalyst®an FDA-clearedclinicalchemistryanalyzerusedtomeasureimportantconstituents inhumanandanimalblood,andtheEndochek,aclinicalchemistryanalyzerused tomeasureimportantconstituentsinanimalblood.IntheUnitedStates,the Companysellsitsproductsdirectlytophysicians,veterinarians,clinical laboratoriesandbloodbanksandonaprivate-labelbasisthroughmultinational distributorsofmedicaldiagnosticsandsupplies.Internationally,theCompany sellsitsproductsprimarilythroughdistributors.TheCompanysellsthe Analyst®andtheEndochekbothdirectlyandthroughdistributorsservicing physicians’officelaboratoriesandveterinarians’offices.Hemagen’sproducts areusedinmanyofthelargestlaboratories,hospitals,andbloodbanksaround theworld.TheCompanyfocusesonmarketsthatoffersignificantgrowth opportunities.TheCompanywasincorporatedin1985andbecameapubliccompany in1993.
Exceptforanyhistoricalinformationcontainedherein,themattersdiscussedin thispressreleasecontainforward-lookingstatementsthatinvolverisksand uncertainties,includingthosedescribedintheCompany’sSecuritiesand ExchangeCommissionReportsandFilings.
CertainStatementscontainedinthisNewsBulletinthatarenothistoricalfacts constituteforward-lookingstatements,withinthemeaningofthePrivate SecuritiesLitigationReformActof1995,andareintendedtobecoveredbythe safeharborscreatedbythatAct.Relianceshouldnotbeplacedonforward lookingstatementsbecausetheyinvolveunknownrisks,uncertaintiesandother factorswhichmaycauseactualresults,performanceorachievementstodiffer materiallyfromthoseexpressedorimplied.Forwardlookingstatementsmaybe identifiedbywordssuchasestimates,anticipates,projects,plans,expects, intends,believes,shouldandsimilarexpressionsandbythecontextinwhich they are used. Such statements are based upon current expectations of theCompanyandspeakonlyasofthedatemade.TheCompanyundertakesnoobligation toupdateanyforward-lookingstatementstoreflecteventsorcircumstances afterthedateonwhichtheyaremade.
Statementsconcerningtheestablishmentsofreservesandadjustmentsfordated andobsoleteproducts,expectedfinancialperformance,on-goingbusiness strategiesandpossiblefutureaction,whichHemagenintendstopursueto achievestrategicobjectives,constituteforward-lookinginformation.The sufficiencyofsuchreservesandadjustments,expectedperformance, implementationofon-goingbusinessstrategiesandpossiblefutureaction,the achievementoffinancialperformanceareeachsubjecttonumerousconditions, uncertaintiesandriskfactors.Factorswhichcouldcauseactualperformanceto differmateriallyfromtheseforwardlookingstatements,includewithout limitation,management’sanalysisofHemagen’sassets,liabilitiesand operations,thefailuretoselldatesensitiveinventorypriortoits expiration,theinabilityofparticularproductstosupportgoodwillallocated tothem,competition,newproductdevelopmentbycompetitorswhichcouldrender particularproductsobsolete,theinabilitytodeveloporacquireand successfullyintroducenewproductsorimprovementsofexistingproductcosts anddifficultiesincomplyingwithlawsandregulationsadministeredbytheU. S.FoodandDrugAdministrationandtheabilitytoassimilatesuccessfully productacquisitions.
