Mr. Jim Hamilton reports

NEPTUNE PROVIDES BUSINESS UPDATE

Neptune Technologies & Bioressources Inc. has provided a business update.

"Since taking over as CEO earlier this year, we have conducted a thorough review of our operations," said Jim Hamilton, president and chief executive officer of Neptune. "Much has been done to strengthen the corporation and position it for the future. Our business has a solid foundation, built on science, intellectual property and entrepreneurship. Moreover, as the krill oil pioneer, with a strong history and solid industry recognition, and based upon my discussions with customers, I believe that their doors are very much open to us. We still have much work, but together with a committed management team and board, we are well positioned to resume our leadership role in the phospholipid omega-3 space and I am excited about the opportunities ahead."

Sherbrooke plant

"Neptune's Sherbrooke plant has a proven ability to produce at the preliminary targeted capacity of 150 metric tons annually and meet all product label specifications," highlighted Mr. Hamilton. "However, at that level we are seeing some product handling characteristics that are not fully in line with what all our customers expect. As a result, we are slowing the production process down to better deliver on expectations. Although this allows us to offer a superior product, it is temporarily resulting in higher production costs."

A team, including third party experts, is determining the cause of the production issue and identifying a longer-term, cost-effective solution to enhance product attributes and increase output. "We have engaged outside leading specialists, individuals I have personally worked with in the past, and directionally I am very confident as to where we are going. It is not unusual for a new production facility to experience such hurdles, and we are making important progress to resolve the situation as quickly as possible."

Fourth quarter fiscal year 2015 preliminary unaudited results

Based on preliminary, unaudited financial results for the fourth quarter ended Feb. 28, 2015, Neptune expects revenues to be approximately $4-million. As a result of various non-recurring items, largely related to the plant issues, quarterly operational expenses are expected to be significantly higher than originally anticipated. Neptune will be reporting its fourth quarter results on May 27, 2015, after markets close.

Departure of chief financial officer Andre Godin

The corporation announces the departure of Mr. Godin as CFO of Neptune and its subsidiaries, effective immediately. Mr. Godin was with Neptune since 2003 and played an active leadership role in all aspects of the organization. "We would like to thank Andre for all his contributions to Neptune's success over the years and wish him all the best in his future endeavours," said Mr. Hamilton. An executive search is currently under way to fulfil his function.

Intellectual property -- '351 patent

On March 23, 2015, the patent trial and appeal board (PTAB) of the U.S. Patent and Trademark Office (USPTO) issued a favourable decision, confirming the validity of certain claims under review in Neptune's '351 patent (U.S. patent 8,278,351) and triggering continuing royalty payments to Neptune by Aker and Enzymotec. Under a royalty agreement with each of them, payments in the United States depended on the PTAB's review of certain claims in Neptune's '351 patent.

On April 23, 2015, both Aker and Enzymotec filed a request with the same PTAB for a rehearing on the two claims that were shown to be patentable. If the request is approved, all parties have the opportunity to restate their positions with regard to those two claims at the hearing. A new PTAB decision would follow in the months after the hearing. As set forth in the settlement agreements entered into with Aker and Enzymotec, continuing royalty payments owed to Neptune should go into escrow until a final decision is rendered by the courts.

Outlook

"Our overriding objectives are to ensure customers receive a premium product and to optimize plant output in a cost-effective manner as quickly as possible," said Mr. Hamilton. As a result of the lower production levels, sales and expenses for the first quarter ended May 31, 2015 are expected to be negatively affected. "However, we expect sales and expenses to improve as plant output and efficiencies increase.

"Given current production issues and various strategic opportunities we have under consideration, we feel that it is prudent and in the best interest of shareholders, to defer any share buybacks related to our normal course issuer bid.

"Despite our present challenges, we continue to be confident in our business model and our growth prospects. Together with a committed management team and board, we will drive growth by selling innovative products, building a more agile business and seizing new market opportunities."

Conference call details

Neptune will be holding a conference call on Thursday, April 30, 2015, at 8:30 a.m. ET to discuss its business update.

Date:  Thursday, April 30, 2015

Time:  8:30 a.m. ET

Conference ID:  38167346

Call:  1-877-380-5664 (within Canada and the United States) or 1-631-813-4882 (outside Canada and the United States) -- please dial in 15 minutes before the call begins

Webcast:  A live audio webcast can be accessed on the company's website

An archived recording of the conference call will also be available on Neptune's website shortly after the call.

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