Press Releases

SAN DIEGO--(BUSINESS WIRE)--Nov. 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 second fiscal quarter and six-month fiscal period ending September 30, 2004.

For the second fiscal quarter ended September 30, 2004, the company reported revenue of $1,034,146.00, an 11% increase compared to $928,481.00 reported in the same quarter for the prior fiscal year. For the second quarter, the company reported net income of $17,812.00, a 29% increase compared to $13,853.00 reported for the same quarter for the prior fiscal year. Income before income tax expense for the second fiscal quarter amounted to $121,964.00, but also included was a relatively higher overall income tax expense of $104,152.00, yielding the net income of $17,812.00.

For the fiscal six months ended September 30, 2004, the company reported revenue of $2,220,309.00, a 19% increase compared to $1,856,666.00 reported in the same six-month period for the prior fiscal year. For the six months, the company reported net income of $307,841.00, or $.03 per share, a 241% increase compared to $90,153.00, or $.01 per share reported for the same six months for the prior fiscal year.

"Achieving profitable quarters while validating science has enabled Imagenetix to expand its branded products into the mass market," reported Bill Spencer, CEO. "Last month, in early October, and not reflected in sales or earnings figures above, the company began fulfilling some initial stocking orders for the mass markets which will be reflected in our third quarter numbers ending 12/31/04 and scheduled to be reported in mid February. Indications are that initial stocking orders could lead to a 50% top line growth or more for quarter three compared to quarter two. During our fourth quarter ending March of 2005, we expect several mass market distributors to be making their initial sales of Imagenetix branded products in food, drug, and mass market stores dispersed around the country. Based on consumer acceptance, sales could grow rapidly in the quarters and years to follow."

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.(1)

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.(1)

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

• (1) 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.