• Press

SAN DIEGO--(BUSINESS WIRE)--Aug. 23, 2004--Imagenetix, Inc. (OTCBB:IAGX - News), www.imagenetix.net, an innovator of scientifically tested, natural-based, proprietary bioceutical products that enhance human and animal health, today announced results for the first fiscal quarter ended June 30, 2004.

For the first fiscal quarter ended June 30, 2004, the company reported revenue of $1,186,163, a 28% increase compared to $928,185 reported in the same quarter of the prior fiscal year. For the first quarter, the company reported net income of $290,029 or $.03 per share, a 280% increase compared to $76,301 or $.01 per share reported for the same quarter of the prior fiscal year. Included in the net income figure for the first fiscal quarter, ending June 30, 2004, was a deferred tax benefit of $131,029.

"We are pleased to report our sixth consecutive profitable quarter," reported Bill Spencer, CEO. "Our sales and earnings are growing. We recently reported full fiscal year earnings of $.05 per share, so we are happy to report earnings of $.03 per share in the first fiscal quarter. Gross sales increased as we increased our base of distributors who are private labeling and marketing Imagenetix products. Gross sales also grew as existing distributors became more educated on the strong scientific data supporting the benefits of using Imagenetix proprietary products. In October of this year we will begin to launch marketing campaigns to make consumers aware and educated about Celadrin® and its benefits."

About Celadrin®

Celadrin®, a natural compound composed of esterified fatty acid carbons (EFACs) and other active synergists, is a proprietary Imagenetix product. Celadrin® can be formulated into both pill and cream forms and it can be used in formulations with other compounds to address the $22 billion joint health market.

In a double-blind, multi-center, placebo-controlled clinical trial of Celadrin®, researchers examined the impact of an oral administration of Celadrin® on participants who were experiencing joint and mobility challenges of the knee. The placebo group and the Celadrin® group were evaluated at baseline, at 30 days, and at 68 days. Among other measurements, evaluations included physician assessment, knee range of motion, and the Lequesne algofunctional index. Results after 68 days indicated that participants who consumed Celadrin® exhibited healthy joint mobility, flexibility and function compared to those given the placebo. Participants' responses to the Lequesne index indicated a statistically significant (p less than 0.001) shift towards functional improvement for the Celadrin® group after 68 days compared to the participants given the placebo. Data from the study indicated that Celadrin® not only promoted joint flexibility, but also supported and promoted the ability to walk long distances.(a)

In a double blind, placebo-controlled study of patients diagnosed with osteoarthritis of the knee, researchers examined the impact of a topical administration of Celadrin® on participants. The placebo group and the Celadrin® group were evaluated at baseline, 30 minutes following initial treatment, and after 30 days, having applied the cream twice per day. Study data revealed that 100% of the participants using the Celadrin® cream experienced significant improvement. Participants given the Celadrin® cream had significantly improved ability to ascend and descend stairs, greater range of motion of the knee, less standing postural sway, improved ability to rise from a chair, improved ability to walk, greater unilateral balance, improved strength, endurance, and functional mobility, and improved quality of life. A most unique finding was that participants using the Celadrin® cream experienced an immediate effect from the treatment 30 minutes following the initial application. Data also revealed further improvement after 30 days of treatment demonstrating a cumulative effect from continued use of Celadrin® cream.

Participants in the studies exhibited no side effects. Data from both clinical trials has been published in the Journal of Rheumatology.

(a) These statements have not been evaluated by the Food and Drug

Administration. This product is not intended to diagnose, treat,

cure or prevent any disease.

About Imagenetix, Inc.

San Diego-based Imagenetix, Inc. (OTCBB: IAGX - News), www.imagenetix.net, is an innovator of scientifically tested, natural-based, proprietary bioceutical products that enhance human and animal health. The Company develops, formulates and private-labels, proprietary, leading edge over-the-counter topical creams, skin care products and nutritional supplements to be marketed globally through multiple channels of distribution. Imagenetix also develops and formulates proprietary patentable products with the intention of entering into licensing agreements with pharmaceutical partners.