Mr. Patrick Montpetit reports

IMMUNOTEC REPORTS 2014 YEAR-END RESULTS

Immunotec Inc. has released its year-end consolidated financial results for fiscal 2014. (All amounts in this press release are denominated in Canadian dollars unless otherwise indicated.)

"We are pleased to report record full-year revenues and adjusted EBITDA in fiscal 2014 fuelled by solid growth in our activities outside of Canada and operational leverage," said Charles L. Orr, chief executive officer. "We are currently addressing some challenges related to our recent implementation of value-added taxes in Mexico. More importantly, a growing number of consultants and customers throughout the world are experiencing the tangible benefits of Immunotec's products and the business opportunities provided by our business model," concluded Mr. Orr.

Performance highlights

Fiscal 2014 consolidated revenues increased 47.5 per cent over the same period last year to $80.8-million. This increase was recorded consistently throughout the year in both Mexico and the rest of North America, totalling 92.9 per cent and 12.9 per cent, respectively.

Sponsoring, defined as the number of new consultants and customers, increased 85.2 per cent over the same period last year to nearly 64,000 in Mexico, while the rest of North America increased 26.7 per cent to nearly 20,000.

               GEOGRAPHIC DISTRIBUTION OF REVENUES
                         (000s of Cdn $) 
                                         For the year ended Oct.
                                               2014        2013

Mexico                                      $46,417     $24,064
Rest of North America                        31,571      27,954
Other countries                               2,802       2,753
Total                                        80,790      54,771
Sponsoring of new customers and
consultants in key markets (number of
people)
Mexico                                       63,982      34,555
Rest of North America                        19,551      15,429

                           RESULTS OF OPERATIONS
               (000s of Cdn $, except for per-share data)

                                                  For the year ended Oct. 31,
                                                        2014            2013

Revenues                                             $80,790         $54,771
Cost of sales                                         18,694          13,499
Margin before expenses                                62,096          41,272
Field incentives                                      42,074          25,786
Selling, general and administrative                   15,004          12,615
Other                                                  6,210           1,836
Operating (loss) income                               (1,192)          1,035
Net finance expenses (income)                            539             (64)
Income taxes (recovery)                                  961            (278)
Net (loss) profit                                     (2,692)          1,377
Total basic and diluted net (loss) profit
per common shares                                      (0.04)           0.02
Field incentives as a % of network sales                56.4%           51.9%
Selling, general and administrative, as a %
of revenues                                             18.6%           23.0%
Adjusted EBITDA                                        5,018           2,871
Adjusted EBITDA as a % of revenues                       6.2%            5.2%

During the year, the company recorded an increase in field incentives, which reached 56.4 per cent of network sales compared with 51.9 per cent in the previous year. Field incentives are the company's most significant expense and consist of commissions from product sales, performance bonuses and other promotional incentives provided to qualifying independent consultants. The increase, when compared with the previous year, is a reflection of increases in various sponsoring activities, which have resulted in higher revenues and leadership-rank advancements.

During the year, the company was able to reduce its selling, general and administrative expenses as a percentage of total revenues to 18.6 per cent compared with 23.0 per cent in the previous year. This improvement reflects a continuous disciplined management of corporate expenses.

Other expenses during the year include a commodity tax expense provision of $5.5-million. The company has filed an appeal with the Mexican Supreme Court during the fourth quarter. Also, the company started charging 16 per cent of value-added tax, effectively Oct. 1, 2014, on additional products sold in Mexico. This action mitigates future taxation risk associated with this interpretation from the Mexican tax authority. More information is available in the contingencies section of management's discussion and analysis.

Adjusted earnings before interest, taxes, depreciation and amortization for the year ended Oct. 31, 2014, amounted to $5.0-million or 6.2 per cent of total revenues compared with $2.9-million or 5.2 per cent in the same periods in the previous year.

Net loss for the year ended Oct. 31, 2014, totalled $2.7-million compared with a net profit of $1.4-million for the previous year. Total basic and fully diluted net loss per common share for the year ended Oct. 31, 2014, was four cents compared with a total basic and fully diluted net profit of two cents in the previous year.

We seek Safe Harbor.