IOT Innovotech Inc

Innovotech Inc. (TSX VENTURE:IOT), a pioneer in the field of biofilm product
development, today announced its audited financial and operational results for
the year ended December 31, 2010.


Highlights:



--  Innovotech increases revenue and decreases loss in 2010, while meeting
    development goals and expanding its position as the leader in providing
    biofilm solutions 
--  Innovotech's biofilm diagnostic test, bioFILM PA(TM), achieves
    commercial and clinical milestones 
--  Innovotech's Sani-Lux(TM) submitted for Canadian Food Inspection Agency
    approval 
--  Innovotech's seed treatment and plant spray, Agress(R), attracts
    additional development funding 



"Innovotech's proprietary platform technology and unique focus results in
effective and versatile solutions to problems caused by biofilms," stated Ken
Boutilier, President and Chief Executive Officer of Innovotech. "Biofilms cause
devastation in human, animal and plant health as well as in industrial settings,
ranging from meat plants to paper mills. Old technology is often either
ineffective or harmful to the environment. The impact on human health, for
example, is huge. In the U.S. alone, over 17 million patients suffer from
difficult to treat biofilm infections, and of this group, 550,000 people die
annually. This is equal to the number of patients who die from cancer. Aside
from the disaster this represents for human lives, the health care system is
forced to respond by diverting time, people, and over 90 billion dollars in
extra costs."


In the fourth quarter of 2010, The Hospital for Sick Children in Toronto,
Canada, reported in their ongoing clinical trial, that in 71% of cases
Innovotech's bioFILM PA(TM) suggested different antibiotic treatment choices for
lung infections in Cystic Fibrosis (CF) patients compared to conventional
testing. Using the right antibiotic early in the treatment of a patient can
result in quicker and better recovery, lower cost, and less opportunity for
bacteria to develop resistance.


Innovotech has filed with the Canadian Food Inspection Agency (CFIA), a hard
surface sanitizer, Sani-Lux(TM), that reacts with light to kill bacteria and
fungi for approval for use in the food industry. The next step will be to work
with potential food industry customers to field test the product. Innovotech has
already signed Material Transfer Agreements with interested companies.


During the fourth quarter 2010, Innovotech secured funding of $154,000 for
Agress(R), from Pulse Crops (Canada) Association. This funding was in addition
to the more than $900,000 Innovotech secured from the Agriculture and Food
Council of Alberta in the second quarter of 2010, which will be used to expand
the potential applications of Agress(TM) from pulse crops (dry beans, dry peas,
lentils, chickpeas) and soybeans to high value horticultural crops such as
tomatoes, peppers, and potatoes, and to support regulatory approval for
Agress(R).




Financial Summary                                                           
----------------------------------------------------------------------------
                                 Year ended December    Year ended December 
($)                                         31, 2010               31, 2009 
----------------------------------------------------------------------------
                                                                            
Revenues                                   1,595,052              1,453,924 
----------------------------------------------------------------------------
                                                                            
G&A                                        1,253,802                984,178 
----------------------------------------------------------------------------
                                                                            
R&D                                          763,815                809,326 
----------------------------------------------------------------------------
                                                                            
Net loss                                  (1,069,883)            (1,127,203)
----------------------------------------------------------------------------
                                                                            
Share Price                                     0.70                   0.65 
----------------------------------------------------------------------------
                                                                            
Cash position                                766,758              1,375,559 
----------------------------------------------------------------------------



Revenues

In the year ended December 31, 2010, total revenues were $1,595,052 in
comparison to $1,453,924 in fiscal 2009. In spite of a challenging trading
environment due to the strength of the Canadian dollar, the Company managed to
grow its contract research revenue in 2010. Increased interest in biofilm
research by other organizations and institutions, following Innovotech's lead,
has contributed to a steady sales growth of the Company's fundamental
proprietary tool for growing biofilms.


General and Administrative Expense

In the year ended December 31, 2010, general and administrative expense was
$1,253,802 in comparison to $984,178 for the year ended 2009. The increase was
mainly due to expenses for legal costs incurred in pursuing commercial
agreements for the Company's two lead products, other professional costs related
to the assistance with transition to International Financial Reporting Standards
(IFRS) and costs related to the marketing of its products. 


Research and Development

In the year ended December 31, 2010, research and development expense was
$763,815 in comparison to $809,326 in 2009. The cost was partially offset by
various grants totaling $236,892 (2009 - $106,467). The reduction of research
and development expense in 2010 occurred as bioFILM PA(TM) enters the market,
thereby reducing development costs but increasing marketing costs. The increase
in grant revenue in three and nine-month periods was a direct result of
repayable contributions received under Canadian Agricultural Adaptation Program
("CAAP") for the development of Agress(R).


Liquidity and Capital Resources

At December 31, 2010, the Company had $766,758 in cash compared to $1,375,559 at
December 31, 2009. Increased expenses in professional costs and continued
investment in development and marketing of the Company's two lead products have
contributed to a decrease in cash reserves since December 31, 2009. These
expenditures were partially offset by the cash inflows from strong contract
research revenue and increased product sales.


The Company will need to expand its cash reserves in 2011 in order to more
rapidly build revenue from its new and existing product pipeline. The Company
has several options at hand, including near-term revenue from within the
bioFILM(TM) family of products, additional grants to cover existing development
expenditures or to raise cash through the financial markets. The Company will
assess and act on these options through the course of the year. 


Innovotech's complete 2010 year-end Financial Statements and Management's
Discussion and Analysis will be filed on The System for Electronic Document
Analysis and Retrieval (SEDAR) at www.sedar.com.


Annual General Meeting

Innovotech's Annual General Meeting of Shareholders will be held on April 19,
2011 at 10:00am (Edmonton time) in the King Edward Room, 3rd Floor, Conference
Centre, Manulife Place, 10180 - 101 Street, Edmonton, Alberta, T5J 3S4.


About Innovotech Inc.:

Innovotech Inc. is a pioneer in the field of biofilm product development,
focused on providing innovative and practical solutions to medical, agricultural
and industrial problems caused by microbial biofilms. Biofilms are responsible
for a host of diseases both in human health and agriculture due to their
inherent resistance to existing antibiotics and disinfectants. Aside from
Innovotech's products there are no antibiotics, disinfectants, diagnostics or
regulatory standards designed specifically for biofilm-forming organisms.


Innovotech currently has one commercial product, bioFILM PA(TM), and one
product, Agress(R), in advanced stages of development. bioFILM PA(TM) is the
first diagnostic kit to assist physicians in the selection of the most effective
combination antibiotic treatment of patients with biofilm-based chronic lung
infections and Agress(R) is a unique, environmentally friendly seed treatment
and plant spray designed to protect crops against both bacterial and fungal
infections.


This document may contain forward-looking statements that are predictive in
nature and subject to risks and uncertainties that cannot be predicted or
quantified; consequently, actual results may differ materially from past results
and those expressed or implied by any forward-looking statements. Factors that
could cause or contribute to such risks or uncertainties include, but are not
limited to: the regulatory environment including the difficulty of predicting
regulatory outcomes; changes in the value of the Canadian dollar; the Company's
reliance on a small number of customers including government organizations;
fluctuations in operating results; government policies or actions; progress and
cost of clinical trials; reliance on key strategic relationships; uncertainty
related to intellectual property protection and potential costs associated with
its defense; the Company's exposure to lawsuits and other matters beyond the
control of management. Should known or unknown risks or uncertainties
materialize, or should management's assumptions prove inaccurate, actual results
could vary materially from those anticipated. The Company undertakes no
obligation to publicly make or update any forward-looking statements, except as
required by applicable law.

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