II Ivivi Technologies, Inc.

Ivivi Technologies, Inc. (AMEX:II), today announced financial results for the three and six month periods ended September 30, 2006. For the three month period ended September 30, 2006, Ivivi Technologies reported revenue growth of 67% to $368,533 from $220,344 for the comparable period in 2005. The increase in revenue was driven by increased sales and marketing efforts. The net loss for the three month period ended September 30, 2006 was $2,097,596, or $0.44 per share, compared to a net loss of $1,554,835, or $0.33 per share, for the three month period ended September 30, 2005. The increase in net loss was primarily the result of increases in interest and finance costs and selling, general and administrative expenses, of which approximately $1.4 million were non-cash charges. For the six month period ended September 30, 2006, Ivivi Technologies reported revenue growth of 127% to $585,952, from $258,071 for the six month period ended September 30, 2005. The Company had a net loss of $3,975,554, or $0.84 per share, for the six month period ended September 30, 2006 compared to a net loss of $2,880,162, or $0.61 per share, for the six month period ended September 30, 2005. The increase in net loss was primarily the result of increases in interest and finance costs and selling, general and administrative expenses, of which approximately $2.4 million were non-cash charges. On September 30, 2006, Ivivi Technologies had cash and cash equivalents of $220,744. On October 24, 2006, Ivivi Technologies completed its initial public offering, selling 2.5 million shares of its common stock at $6.00 per share. On November 22, 2006, the Company sold an additional 250,000 shares at $6.00 per share upon partial exercise of the underwriters� over-allotment option. Total net proceeds received from the offering and over-allotment were approximately $13.8 million, of which approximately $3.1 million was used to repay certain indebtedness outstanding at September 30, 2006 and to pay related interest. In addition, in connection with the IPO, the outstanding convertible debt of the Company that was outstanding at September 30, 2006 converted into shares of common stock of Ivivi Technologies. As a result of the completion of the IPO, there were 9,517,389 shares outstanding and no outstanding loans as of November 29, 2006. Andre� A. DiMino, Vice Chairman and Co-Chief Executive Officer, commented, �The quarter continued to show positive results from our expanded marketing efforts and increased market penetration of our products in the wound care and plastic surgery markets, however, the key highlights of the last several months were the successful completion of the IPO and subsequent signing of an exclusive worldwide marketing agreement with Allergan for the use of our products in conjunction with any aesthetic or bariatric medical procedures.� David Saloff, President and Co-Chief Executive Officer added, �This has been a very exciting time for Ivivi. By strengthening our balance sheet, we believe we have a significant opportunity to continue to refine our technology and increase our sales and marketing efforts. The distribution agreement validates our strategy of partnering with the top companies in the markets we are targeting and we believe greatly enhances our ability to expand our market presence.� About Ivivi Technologies, Inc. Based in Northvale, NJ, Ivivi Technologies, Inc. is a medical technology company focusing on designing, developing and commercializing its proprietary electrotherapeutic technology platform. Ivivi�s research and development activities are focused specifically on pulsed electromagnetic field, or PEMF, technology, which, by creating a therapeutic electrical current in injured soft tissue, stimulates biochemical and physiological healing processes to help repair the injured tissue and reduce related pain and inflammation. The Company�s Electroceuticals� have been used in non-invasive treatments for a wide array of conditions, including chronic wounds, pain and edema following plastic and reconstructive surgery and chronic inflammatory disorders. Forward-Looking Statements This press release contains �forward looking statements� that are subject to risk and uncertainties, including, but not limited to, the Company�s limited operating history, history of significant and continued operating losses and substantial accumulated earnings deficit, difficulties with its financial accounting controls, the failure of the market for the Company�s products to continue to develop, the inability for customers to receive third party reimbursement, the inability to obtain additional capital, the inability to protect the Company�s intellectual property, the loss of any executive officers or key personnel or consultants, competition, changes in the regulatory landscape or the imposition of regulations that affect the Company�s products and other risks detailed from time to time in the Company�s filings with the Securities and Exchange Commission, including the Company�s registration statement on Form SB-2. These risks could cause actual results to differ materially from those expressed in any forward looking statements made by, or on behalf of, the Company. The Company assumes no obligation to update the information contained in this press release. IVIVI�TECHNOLOGIES, INC. Statements of Operations (Unaudited) � Three Months Ended September 30, Six Months Ended September 30, 2006� � 2005� 2006� 2005� � Revenue $ 368,533� $ 220,344� $ 585,952� $ 258,071� � Cost and expenses: Cost of revenue 26,560� 41,418� 68,267� 53,763� Depreciation and amortization 7,328� 23,076� 9,764� 56,664� Salaries 327,321� 301,044� 523,154� 538,054� Research and development 166,575� 154,576� 297,391� 321,925� Selling, general and administrative 1,184,469� 1,011,070� 2,033,098� 1,737,407� Total operating expenses 1,712,253� 1,531,184� 2,931,674� 2,707,813� Loss from operations (1,343,720) (1,310,840) (2,345,722) (2,449,742) � Change in fair value of warrant and registration rights liabilities --� --� (25,827) --� Interest and finance costs, net (753,876) (233,995) (1,604,005) (430,420) � Loss before income taxes (2,097,596) (1,544,835) (3,975,554) (2,880,162) Income taxes --� --� --� --� Net loss $(2,097,596) $(1,544,835) $(3,975,554) $(2,880,162) Net loss per share, basic and diluted $(0.44) $(0.33) $(0.84) $(0.61) Weighted average shares outstanding 4,745,000� 4,745,000� 4,745,000� 4,745,000� Ivivi Technologies, Inc. Balance Sheet September 30, 2006 (Unaudited) � Current assets Cash and cash equivalents $ 220,744� Accounts receivable, net 221,673� Inventory, current portion 44,250� Prepaid expenses 126,615� Total current assets 613,282� � Property and equipment, net 23,451� Inventory, long term 285,424� Deferred loan costs 577,326� Deferred offering costs 820,922� Total assets 2,320,405� � Current Liabilities: Accounts payable and accrued expenses $2,190,268� Advances payable � affiliates 2,637,510� Note payable � current 250,000� Total current liabilities 5,077,778� � Deferred revenue 285,167� Convertible debentures payable, net 7,557,208� Warrant and registration rights liabilities 6,972,357� Total liabilities 19,892,510� � Shareholders� deficiency: Common stock 74,600� Additional paid-in capital 2,262,620� Accumulated deficit (19,909,325) Total stockholders� deficiency (17,572,105) � Total liabilities and stockholders� deficiency $2,320,405� Ivivi Technologies, Inc. (AMEX:II), today announced financial results for the three and six month periods ended September 30, 2006. For the three month period ended September 30, 2006, Ivivi Technologies reported revenue growth of 67% to $368,533 from $220,344 for the comparable period in 2005. The increase in revenue was driven by increased sales and marketing efforts. The net loss for the three month period ended September 30, 2006 was $2,097,596, or $0.44 per share, compared to a net loss of $1,554,835, or $0.33 per share, for the three month period ended September 30, 2005. The increase in net loss was primarily the result of increases in interest and finance costs and selling, general and administrative expenses, of which approximately $1.4 million were non-cash charges. For the six month period ended September 30, 2006, Ivivi Technologies reported revenue growth of 127% to $585,952, from $258,071 for the six month period ended September 30, 2005. The Company had a net loss of $3,975,554, or $0.84 per share, for the six month period ended September 30, 2006 compared to a net loss of $2,880,162, or $0.61 per share, for the six month period ended September 30, 2005. The increase in net loss was primarily the result of increases in interest and finance costs and selling, general and administrative expenses, of which approximately $2.4 million were non-cash charges. On September 30, 2006, Ivivi Technologies had cash and cash equivalents of $220,744. On October 24, 2006, Ivivi Technologies completed its initial public offering, selling 2.5 million shares of its common stock at $6.00 per share. On November 22, 2006, the Company sold an additional 250,000 shares at $6.00 per share upon partial exercise of the underwriters' over-allotment option. Total net proceeds received from the offering and over-allotment were approximately $13.8 million, of which approximately $3.1 million was used to repay certain indebtedness outstanding at September 30, 2006 and to pay related interest. In addition, in connection with the IPO, the outstanding convertible debt of the Company that was outstanding at September 30, 2006 converted into shares of common stock of Ivivi Technologies. As a result of the completion of the IPO, there were 9,517,389 shares outstanding and no outstanding loans as of November 29, 2006. Andre' A. DiMino, Vice Chairman and Co-Chief Executive Officer, commented, "The quarter continued to show positive results from our expanded marketing efforts and increased market penetration of our products in the wound care and plastic surgery markets, however, the key highlights of the last several months were the successful completion of the IPO and subsequent signing of an exclusive worldwide marketing agreement with Allergan for the use of our products in conjunction with any aesthetic or bariatric medical procedures." David Saloff, President and Co-Chief Executive Officer added, "This has been a very exciting time for Ivivi. By strengthening our balance sheet, we believe we have a significant opportunity to continue to refine our technology and increase our sales and marketing efforts. The distribution agreement validates our strategy of partnering with the top companies in the markets we are targeting and we believe greatly enhances our ability to expand our market presence." About Ivivi Technologies, Inc. Based in Northvale, NJ, Ivivi Technologies, Inc. is a medical technology company focusing on designing, developing and commercializing its proprietary electrotherapeutic technology platform. Ivivi's research and development activities are focused specifically on pulsed electromagnetic field, or PEMF, technology, which, by creating a therapeutic electrical current in injured soft tissue, stimulates biochemical and physiological healing processes to help repair the injured tissue and reduce related pain and inflammation. The Company's Electroceuticals(TM) have been used in non-invasive treatments for a wide array of conditions, including chronic wounds, pain and edema following plastic and reconstructive surgery and chronic inflammatory disorders. Forward-Looking Statements This press release contains "forward looking statements" that are subject to risk and uncertainties, including, but not limited to, the Company's limited operating history, history of significant and continued operating losses and substantial accumulated earnings deficit, difficulties with its financial accounting controls, the failure of the market for the Company's products to continue to develop, the inability for customers to receive third party reimbursement, the inability to obtain additional capital, the inability to protect the Company's intellectual property, the loss of any executive officers or key personnel or consultants, competition, changes in the regulatory landscape or the imposition of regulations that affect the Company's products and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission, including the Company's registration statement on Form SB-2. These risks could cause actual results to differ materially from those expressed in any forward looking statements made by, or on behalf of, the Company. The Company assumes no obligation to update the information contained in this press release. -0- *T IVIVI TECHNOLOGIES, INC. Statements of Operations (Unaudited) Three Months Ended Six Months Ended September 30, September 30, --------------------------------------------------- 2006 2005 2006 2005 ------------ ------------ ------------ ------------ Revenue $368,533 $220,344 $585,952 $258,071 ------------ ------------ ------------ ------------ Cost and expenses: Cost of revenue 26,560 41,418 68,267 53,763 Depreciation and amortization 7,328 23,076 9,764 56,664 Salaries 327,321 301,044 523,154 538,054 Research and development 166,575 154,576 297,391 321,925 Selling, general and administrative 1,184,469 1,011,070 2,033,098 1,737,407 ------------ ------------ ------------ ------------ Total operating expenses 1,712,253 1,531,184 2,931,674 2,707,813 ------------ ------------ ------------ ------------ Loss from operations (1,343,720) (1,310,840) (2,345,722) (2,449,742) Change in fair value of warrant and registration rights liabilities -- -- (25,827) -- Interest and finance costs, net (753,876) (233,995) (1,604,005) (430,420) ------------ ------------ ------------ ------------ Loss before income taxes (2,097,596) (1,544,835) (3,975,554) (2,880,162) Income taxes -- -- -- -- ------------ ------------ ------------ ------------ Net loss $(2,097,596) $(1,544,835) $(3,975,554) $(2,880,162) ============ ============ ============ ============ Net loss per share, basic and diluted $(0.44) $(0.33) $(0.84) $(0.61) ============-============ ============ ============ Weighted average shares outstanding 4,745,000 4,745,000 4,745,000 4,745,000 ============ ============ ============ ============ *T -0- *T Ivivi Technologies, Inc. Balance Sheet September 30, 2006 (Unaudited) Current assets Cash and cash equivalents $220,744 Accounts receivable, net 221,673 Inventory, current portion 44,250 Prepaid expenses 126,615 -------------------------- Total current assets 613,282 -------------------------- Property and equipment, net 23,451 Inventory, long term 285,424 Deferred loan costs 577,326 Deferred offering costs 820,922 -------------------------- Total assets 2,320,405 ========================== Current Liabilities: Accounts payable and accrued expenses $2,190,268 Advances payable - affiliates 2,637,510 Note payable - current 250,000 -------------------------- Total current liabilities 5,077,778 -------------------------- Deferred revenue 285,167 Convertible debentures payable, net 7,557,208 Warrant and registration rights liabilities 6,972,357 -------------------------- Total liabilities 19,892,510 -------------------------- Shareholders' deficiency: Common stock 74,600 Additional paid-in capital 2,262,620 Accumulated deficit (19,909,325) -------------------------- Total stockholders' deficiency (17,572,105) -------------------------- Total liabilities and stockholders' deficiency $2,320,405 ========================== *T