Imagenetix Reports Fourth Quarter and Year End Result

SAN DIEGO–(BUSINESS WIRE)–July 14, 2003–Imagenetix, Inc. (OTCBB:IAGX – News), www.imagenetix.net, an innovator of scientifically tested, natural based, proprietary bioceutical products developed to enhance human and animal health on a global basis, today announced fiscal results for the fourth quarter and year ended March 31, 2003. For the fourth fiscal quarter ended March 31, 2003, the company reported revenue of $1,026,103, a 22% increase compared to $838,081 reported in the same quarter of the prior fiscal year. For the fourth quarter, the company reported net income of $48,393 or $.01 per share compared to a loss of $355,004 or ($.04) per share reported for the same quarter of the prior fiscal year.

For the year ended March 31, 2003, the company reported revenue of $3,409,058, a 23% decrease compared to $4,443,742 reported for the same period last year. For the fiscal year, the company reported a net loss of $775,484 or ($.09) per share compared to a net loss of $256,036 or ($.03) per share for the same period last year. This year’s net loss included a non-cash expense of $408,327 or ($.05) per share associated with the issuance of common stock purchase warrants. Excluding the non-cash loss from the issuance of the warrant, the results for the fiscal year would have been a loss of $367,157 or ($.04) per share.

“We are pleased to report that our fourth quarter was the best quarter of the year and showed a significant improvement in both sales and earnings over the three previous quarters and over the same quarter the previous year,” said Bill Spencer, Chief Executive Officer of Imagenetix. “For the first nine months, we had experienced a decrease in sales as previously reported to shareholders on a quarterly basis, however, during that time frame, pieces were put in place which we believe will lead to the company’s future success. Significant strides were made in the further development of our proprietary products.”

The following examples list some of the Company’s most recent achievements:

• Significant scientific data was gathered through the successful completion of multiple clinical trials.
• A patent application was filed on a very promising proprietary compound.
• The Journal of Rheumatology published one of the Company’s clinical studies on one of its proprietary compounds.
• Presentations of the Company’s clinical data from various studies were made at four (4) separate international scientific meetings.
• New business relationships were created with entities which provide high visibility consumer product awareness including radio direct consumer response and an upcoming television infomercial.
• Registration has been completed on over 25 of the Company’s products in foreign countries, which include Japan, Germany, Australia, South Korea, Canada, and others.