XYMOGEN REPORTS RECORD ACTIVITIES FOR Q1-2012 INCLUDING REVENUES, EDUCATIONAL DEVELOPMENT, SPONSORSHIPS AND NEW MANUFACTURING HEADQUARTERS

Dr. John Brimhall joins XYMOGEN as Director of Educational Development

XYMOGEN Assumes Alternative Medicine Review Corporate Sponsorship

Move to new 136,000 sq.ft. Manufacturing Headquarters set for April 30th

ORLANDO, Fla. – Monday, April 16, 2012 – Orlando-based company XYMOGEN today reported financial results for its first quarter FY-2012. 

Q1-2012 Financial Highlights

• XYMOGEN posted Q1-2012 revenues / earnings of $11.3 million / $151K compared to $9.4 million /$696K for Q1-2011.  This represents a 21 percent period-over-period revenue growth and exceeded the company’s target of 15 percent growth projected at the outset of the year.
• XYMOGEN announced Dr. John W. Brimhall, BA, BS, DC, FIAMA, DIBAK has joined the company in the position of Director of Educational Development.  Dr. Brimhall, with 41 years experience is a pioneer in the fields of Integrated and Functional Medicine and one of the most sought-after seminar presenters in the country.  Utilizing XYMOGEN’s proprietary and patented ingredients, Dr. Brimhall has formulated more than 20 condition-specific formulas to be introduced by Dr. Brimhall at a series of 12 scheduled presentations throughout the country in 2012.   
• This May, XYMOGEN takes over corporate sponsorship of the esteemed Alternative Medicine Review [AMR].  AMR is the leading peer-reviewed, pubmed-indexed journal in the fields of Alternative and Integrated Medicine.  XYMOGEN recognizes the visionary contributions AMR publisher Al Czap has made in our field and stands by his efforts to propagate knowledge and empower the furthering of human health.  
• On April 30, 2012 XYMOGEN officially opens its new 136,000 sq. ft. state-of-the-art Manufacturing Headquarters facility in Orlando, FL.  Manufacturing is expected to commence the second week of May.   

Executive Quotes

“Much of XYMOGEN’s 21 percent growth may be attributed to the extraordinary growth of our fructose-free Functional Foods. The newly introduced OptiMetaboliX, formerly known as OptiGlycemiX, was the most successful product launch in XYMOGEN history.  This new formulation with InSea2, bentfotiamine, CinSulin, and a host of other nutrients helps to support healthy insulin, glucose metabolism, body composition, and healthy lipid levels, while reducing glycation and oxidative stress. With i5 and OptiCleanse GHI, our other two functional foods, sales are at all-time record levels.”  Mike Mahoney, XYMOGEN Vice President of Medical Education

“The Obama Administration has created the NEI (National Exports Initiative) with the goal of doubling U.S. exports by 2014.   XYMOGEN has embraced the opportunities of going global with initiatives in multiple countries.  As most every other country has a registration process for dietary supplements, the time to market does take time, but is well worth the patience. Early in 2011 XYMOGEN embarked on international initiatives and now has contracts throughout Southeast Asia, South America, Asia, The Middle East and Canada.  XYMOGEN is currently engaged in the registration of products with multiple distributors in multiple countries. Canada is a prime focus as XYMOGEN has invested in its own operation and sales force.”  Scott Bukow, XYMOGEN Vice President of International Development

“While we are pleased we surpassed Q1-2012 financial projections, the more exciting developments in the first quarter revolve around strategic alliances with two of the most renowned pioneers in our industry, Dr. John Brimhall and Al Czap.  Opportunities to partner with leaders of this caliber come along maybe one in a lifetime.  We did not hesitate to seize the opportunities to develop Brimhall-Formulated products and support Al Czap’s long-term commitment to maintain a voice for Integrated Medicine in the peer-reviewed pubmed-indexed research community.”  Brian Blackburn, XYMOGEN C.E.O. 

Financial Outlook

For the second quarter of fiscal 2012, XYMOGEN is targeting revenue/earnings of $11.2 million/$150K compared to $9.81 million/$462K for Q2-2011. This represents revenue growth of 15%.  XYMOGEN continues to invest heavily in International Development and Regulatory GMP’s for our move into manufacturing in May. We see earnings growth beginning in Q3-2012 and beyond as we begin manufacturing our own formulas and International Revenues grow.

Based upon $5.3 million depreciation realized in 2011, coupled with depreciation projections of $2 million in 2012, XYMOGEN projects no federal income tax liability until Q3-2013. Tax-exempt earnings will be applied toward creating jobs in its new manufacturing headquarters as well as funding other growth initiatives. 

For fiscal year 2012, XYMOGEN is projecting annual revenue growth of 15 percent, or $46 million. XYMOGEN is targeting its share value to increase 15 percent from the present value of $56.51 to $65.00 as of Dec. 31, 2012. These targets do not include the impact of XYMOGEN’s contract-manufacturing and digital label printing businesses, which are projected to generate revenues beginning Q4-2012. 

Per covenants with TD Bank and relating to the $14.34 million building and equipment financing, Vestal & Wiler, Certified Public Accountants conducted a full audit of XYMOGEN the week of Feb. 6, 2012. Copies of the completed audit will be available to shareholders upon request.

Forward-Looking Statements Disclosure

This press release contains forward-looking statements, including those related to revenue, non-operating expenses, tax rates, earnings, and our ability to continue to align our business to successfully respond to opportunities and changes in our industry.

The financial information set forth in this press release reflects estimates based on information available at this time. These amounts could differ from actual reported amounts stated in XYMOGEN’s annual report for our fiscal year ended Dec. 31, 2011, which XYMOGEN expects to release in May 2012.

About XYMOGEN

XYMOGEN, a family-owned, health sciences company headquartered in Orlando, Fla., has been providing high-quality dietary supplements to licensed healthcare practitioners for more than a quarter century. The nutraceutical company has introduced numerous innovations to the functional medicine community, and its Medical Board of Advisors consists of clinical practitioners who represent a broad range of specialties. XYMOGEN’s unprecedented growth continues with a new, state-of-the-art, 136,000 square foot manufacturing facility and laboratory, and a strategic expansion into Canada and Australia, two of the largest international markets. XYMOGEN’s strength as a company was reinforced in 2007, 2008, 2010, and 2011, when it was recognized by Inc. magazine as one of the 5000 fastest-growing private companies in America.

For more information, visit www.xymogen.com.

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