Mr. Hylton Karon reports

IFABRIC CORP REPORTS FINANCIAL RESULTS FOR THE FIRST QUARTER ENDED DECEMBER 31ST 2014

iFabric Corp. has released its financial results for its first quarter ended Dec. 31, 2014.

Highlights for the first quarter ended Dec. 31, 2014

Revenues were $3,042,404 compared with $3,005,785 in 2013.

Operating loss for the quarter was $131,725 compared with an operating profit of $314,023 in 2013. This operating loss is attributable to regulatory costs related to the company's Environmental Protection Agency regulatory approval in respect of its products for entry into the medical market, as well as marketing and other costs incurred in advance of future sales for the intelligent fabrics division, which together amounted to $306,000. The loss also includes additional margin guarantee support of approximately $100,000, which was provided to major retailers by the company's apparel division as an incentive to support current and future programs. Furthermore, an amount of $93,000 was paid and accrued in respect of severance to a former director and officer of the company.

"The company's major push towards securing the regulatory approvals for entry into the medical market is now under way. This anti-bacterial and anti-viral medical market represents a very significant opportunity for iFabric," stated Hylton Karon, president and chief executive officer.

"While sales to the sports market have commenced and I expect these to continue to grow, I wish to remind investors that our primary goal is and has always been the medical market, which represents by far the largest opportunity for iFabric," added Mr. Karon.

"Whilst the high level of costs associated with the testing of our unique formulations for regulatory approvals for the medical market are currently affecting and will continue to affect our operating performance in the short term, the medical market represents such a large market opportunity for the company that once regulatory approvals are obtained, we anticipate significant and sustained growth in sales and profitability for the company, and I remain extremely confident that we will meet these objectives," concluded Mr. Karon.

After-tax loss was $160,220 (or 0.6 cent per share, basic and diluted) compared with an after-tax profit of $213,330 (or 0.8 cent per share, basic and diluted) for the quarter ended Dec. 31, 2013. In addition to the expense items mentioned above, the loss after tax includes an amount of $108,629 in non-cash share-based compensation, which has been expensed as required by IFRS (international financial reporting standards).

Working capital amounted to $5,460,741 at Dec. 31, 2014, compared with $5,631,275 as at the end of the previous financial quarter.

Net of cash, the company had no operating debt as at Dec. 31, 2014, and available bank operating facilities of $2-million.

Shareholder equity was $7,434,690 compared with $7,474,281 at the end of the previous financial quarter.

Complete financial statements are available on SEDAR and the company's website.

                            FINANCIAL HIGHLIGHTS
                                                      Quarter ended Dec. 31,
                                                        2014           2013

Revenue                                           $3,042,404     $3,005,785
Income from operations                              (131,725)       314,023
Share-based (compensation)                          (108,629)       (47,671)
Earnings before interest, taxes,
depreciation and amortization                       (107,615)       385,802
Net income (loss) after tax                         (160,220)       213,330
Net income (loss) per share                           (0.006)         0.008

We seek Safe Harbor.