Mr. John Ripplinger reports

NEPTUNE PROVIDES BUSINESS UPDATE

Neptune Technologies & Bioressources Inc. has had continued strength in business fundamentals.

"Our constant focus on operational excellence continues to generate improved performance across the business and we are excited by our current opportunities and outlook," highlighted Jim Hamilton, president and chief executive officer of Neptune. "In recent months, our business has gained momentum, and this is being reflected in our strengthening results. We are building a much stronger company, and, as we look to the future, we remain focused on driving long-term profitable growth through continuous improvement and business transformation."

Cash levels growing -- positive cash flow expected for the third quarter

Neptune anticipates a positive net operating cash flow position for the third quarter ending Nov. 30, 2015. The quarter-end nutraceutical cash balance is expected to be approximately $4.5-million to $5-million, up from $3.4-million at the end of the second quarter ended Aug. 31, 2015. The higher cash balance is due to the recent receipt of $1.3-million in Quebec investment tax credits, along with $500,000 in business interruption insurance recovery relating to the 2012 Sherbrooke plant incident.

The Quebec investment tax credits are for equipment purchased for manufacturing and processing at the corporation's Sherbrooke plant in 2014. An additional $1-million investment tax credit is expected to be received in 2016.

For the six-month period ending Feb. 29, 2016, the corporation anticipates to be in no less than a neutral cash flow position. This compares with a cash burn of $5.8-million for the six-month period ended Aug. 31, 2015.

Sherbrooke plant continues to operate above nameplate capacity

Neptune's Sherbrooke plant has proven it can outperform the corporation's internal target of 150 metric tonnes annually. For the months of September and October, the plant's output was equivalent to an annualized rate of 160 metric tonnes.

Sales momentum continues to build -- selling to marketers around the world

Neptune enjoys solid customer and industry recognition, and the corporation is actively re-establishing its market presence. The corporation is identifying new markets, commercializing new products and offering more compelling customer value propositions. This is resulting in orders and new product launches with marketers around the world, such as Swisse, DailyNutra, Framingham and Artic Flex.

Swisse recently launched Neptune's premium krill oil, NKO, in Boots stores, the largest pharmaceutical chain in the United Kingdom. Its vitamin and supplement launch will be endorsed by the United Kingdom Olympic team for the 2016 Summer Olympics. Additional launches in other European countries are also planned for 2016. Earlier this year, Swisse also launched NKO in Southeast Asia, where it is seeing growing demand.

Framingham Pharma launched NKO in Argentina, where it is actively implementing a public awareness campaign on the benefits of krill oil. This has enabled them to achieve strong sales growth, well above their original targets.

DailyNutra has launched Neptune's krill oil formulations, Beat, Flex and Focus, targeting the heart, joints and brain, respectively. The formulas are available for purchase in the United States on the Amazon website and at select U.S. retail outlets. Going forward, DailyNutra also plans to launch in Canada.

Artic Flex has partnered with Neptune and the National Network of Orthopedic Surgeons (NNOS) to bring to market Neptune's krill oil formulation, Flex, a premium bone and joint formula. It is available on-line in the United States at the Artic Flex website.

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