IVAX Diagnostics Announces Substantial Sales Increase in Third Quarter

Business Wire, Nov 13, 2002

Business Editors/Health & Medical Writers

MIAMI--(BUSINESS WIRE)--Nov. 13, 2002

Company Also Announces Strategic Relationship To Sell Allergy

Diagnostic Products And Two New Distribution Agreements

IVAX Diagnostics, Inc. (AMEX:IVD) today announced financial results for the third quarter and nine months ended September 30, 2002. Net revenues for the third quarter of 2002 increased 104% to $3,904,482 from $1,910,013 in the same quarter a year ago. The net loss for the third quarter of 2002 decreased to $798,205 as compared to a net loss of $864,658 for the third quarter of 2001. For the nine months ended September 30, 2002, net revenues increased to $9,526,630 from $8,047,141 in the same period a year earlier. The net loss for the nine months ended September 30, 2002 decreased to $2,247,233 from $2,384,501 in the same nine-month period of 2001.

Giorgio D'Urso, CEO and President of IVAX Diagnostics said: "We are pleased with the top and bottom line improvements in our quarterly financial results. Higher quarterly sales reflect the progress of our marketing efforts and we believe that IVAX Diagnostics continues to gain momentum in both reagent kit sales and new instrument placements. Our integration of the assets we acquired from the enzyme immunoassay (EIA) product line of Sigma Diagnostics in May of this year is progressing very well and has allowed us to significantly increase the size of our installed base of proprietary instruments that utilize test kits we manufacture. We expect that this larger base will continue to provide operating efficiencies."

IVAX Diagnostics also announced that it has begun worldwide marketing of an innovative line of allergy diagnostic products under the Diamedix(R) name. These products were launched by Delta Biologicals S.r.l., IVAX Diagnostics' subsidiary in Italy, at the Diabiotech Meeting held in Florence, Italy last month. The rights to these products were obtained under an agreement with Lofarma S.p.A., located in Milan, Italy. These allergy products are configured for manual testing or in an automated mode with IVAX Diagnostics' Mago(R) Plus instrumentation. IVAX Diagnostics plans to continue launching sales of these allergy diagnostic products in additional international markets. Mr. D'Urso commented: "We are very excited at the prospect of expanding our customer base by offering state of the art allergy products in the new liquid phase technology to an unsaturated, high growth potential market."

Additionally, IVAX Diagnostics has signed two new agreements for the distribution of its products in Portugal and Belgium. Mr. D'Urso added that, "These two new agreements further expand the number of countries in which our products are marketed. Moreover, one of these contracts should provide us with orders of up to $1.6 million over the three-year life of the agreement."

Phillip Frost, M.D., IVAX Diagnostics' Chairman said: "While we continue to explore additional opportunities in the diagnostics sector that represent good strategic additions for IVAX Diagnostics, we are pleased with the expansion that has come from the core business."

About IVAX Diagnostics, Inc.

IVAX Diagnostics, Inc., headquartered in Miami, Florida, develops, manufactures and markets proprietary diagnostic reagents, instrumentation and software in the United States and Italy through its three subsidiaries: Diamedix Corporation, Delta Biologicals S.r.l. and ImmunoVision, Inc. IVAX Corporation (AMEX:IVX, LSE:IVX.L) owns approximately 70% of IVAX Diagnostics, Inc.

Except for the historical matters contained herein, statements in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements involve risks and uncertainties that may affect the business and prospects of IVAX Diagnostics, Inc., including, without limitation: risks and uncertainties regarding the acquisition and integration of Sigma Diagnostics' global EIA product line, that we may not be successful in our sales and marketing efforts, that our market share or customer base may not expand, that operational efficiencies and synergies may not occur, that IVAX Diagnostics may not enter into additional distribution agreements or strategic transactions or acquisitions, and that expansion into or agreements for international markets may not prove successful; and other risks and uncertainties that may cause results to differ materially from those set forth in the forward-looking statements. In addition to the risk factors set forth above, investors should consider the economic, competitive, governmental, technological and other factors discussed in the Company's filings with the Securities and Exchange Commission.

               IVAX DIAGNOSTICS, INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF OPERATIONS
                             (Unaudited)

Period Ended September 30,     Three Months           Nine Months

                              2002       2001        2002        2001
                        ----------------------------------------------

Net  revenues           $3,904,482 $1,910,013  $9,526,630  $8,047,141
Cost of sales            2,223,389    988,361   5,067,574   3,653,777
                        ----------------------------------------------
  Gross profit           1,681,093    921,652   4,459,056   4,393,364
                        ----------------------------------------------

Operating expenses:
  Selling                1,326,789    794,178   3,241,888   2,298,875
  General and
   administrative          977,177    841,921   2,866,455   3,513,825
  Research and
   development             398,423    349,989   1,108,515     958,794
  Goodwill amortization          -     63,742           -     191,211
                        ----------------------------------------------
  Total operating
   expenses              2,702,389  2,049,830   7,216,858   6,962,705
                        ----------------------------------------------

  Loss from operations  (1,021,296)(1,128,178) (2,757,802) (2,569,341)

Other income, net          102,385    205,616     415,027     541,273
                        ----------------------------------------------

  Loss from continuing
   operations before
   income taxes           (918,911)  (922,562) (2,342,775) (2,028,068)

Provision (benefit)for
 income taxes             (120,706)   (57,904)    (95,542)    356,433
                        ----------------------------------------------

Net loss                 $(798,205) $(864,658)$(2,247,233)$(2,384,501)
                        ==============================================

Basic and diluted loss
 per common share            $(.03)     $(.03)      $(.08)      $(.09)
                        ==============================================

Basic and diluted
 average shares
 outstanding            28,645,430 28,629,061  28,642,563  26,293,079
                        ==============================================



               IVAX Diagnostics, Inc. and Subsidiaries
                Condensed Consolidated Balance Sheets

                                               September     December
                                                  30,           31,
                                                 2002          2001
                                              (Unaudited)
                                              ------------------------
ASSETS
------

Current assets                                $29,612,419 $30,760,719
Property, plant and equipment, net              1,816,864   1,458,702
Other assets                                    8,157,937   7,927,107
                                              ------------------------
     Total assets                             $39,587,220 $40,146,528
                                              ========================


LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------

Current liabilities                            $3,787,770  $2,948,951
Other long-term liabilities                       333,287     397,674
Total shareholders' equity                     35,466,163  36,799,903
                                              ------------------------
     Total liabilities and shareholders'
      equity                                  $39,587,220 $40,146,528
                                              ========================