Company Also Reaffirms Year-End Guidance NEW YORK, Aug. 19 /PRNewswire-FirstCall/ -- Inyx, Inc. (OTC:IYXI) (BULLETIN BOARD: IYXI) , a specialty pharmaceutical company focused on aerosol drug delivery technologies and products, reported today operating results for the second quarter and first half ended June 30, 2005. The company also reaffirmed its guidance for 2005. For the 2005 second quarter, revenues reached $8.5 million, the highest quarterly level in the company's history and more than triple the $2.8 million reported a year ago. There was a net loss in the 2005 quarter of $4.1 million, equal to $0.10 per share, compared with a net loss of $3.4 million, or $0.12 a share, in the year-earlier period. For the 2005 first half, revenues increased 53% to $11.2 million from $7.3 million in the corresponding period last year. The net loss in the 2005 half amounted to $11.1 million, equal to $0.28 per share, versus a net loss of $6.1 million, or $0.21 a share, a year earlier. Detailed financials are presented in the company's Form 10-Q being filed today, which can be downloaded from Inyx's website. Results in Perspective & Future Guidance Jack Kachkar, M.D., Chairman & CEO of Inyx, Inc., said, "The strong increase in second-quarter revenues is due to increased business from our Puerto Rico acquisition on March 31, 2005. We also had higher operating expenses and financing costs as a result of the acquisition. Contributing to the increased loss in this year's first half was a reduction in our core revenues during the period due to regulatory delays experienced by two customers and a vendor qualification delay on a third customer at our United Kingdom site. These delays, which have since been resolved, have resulted in approximately $8.0 million in committed contract revenues being deferred from the first half to the second half of 2005." Dr. Kachkar added, "Based on new business relationships that we have been cultivating, as well as the commencement and ramp-up of several existing contracts in this second half, Inyx reaffirms the 2005 financial guidance given earlier in the year." Inyx expects revenues to total more than $50 million in 2005 and to achieve operating profitability by year-end. "We are very excited about the future because of growth opportunities that are opening up for Inyx as a result of our company's expanding base of clients and strategic relationships with leading pharmaceutical companies," said the Inyx CEO. He noted that these expansions are being driven by Inyx's expertise and technologies in three areas: (1) Inyx is one of only several companies with proven experience in converting from ozone-depleting to non-ozone- depleting aerosol pharmaceuticals; (2) Inyx's patented lipid-matrix technology that enhances inhalation delivery of not only single molecule but also combination drugs; and (3) Inyx's proprietary hydrocarbon foam formulations for aerosol delivery of dermatological and topical pharmaceutical products. About Inyx Inyx, Inc. is a specialty pharmaceutical company with aerosol drug delivery technologies and products for the treatment of respiratory, allergy, dermatological, topical and cardiovascular conditions. Inyx focuses its expertise on both prescription and over-the-counter pharmaceutical products, and provides specialty pharmaceutical development and production consulting services. In addition, Inyx is developing its own proprietary products to be marketed by selected clients and strategic partners. The company's operations are conducted through several wholly owned subsidiaries: Inyx USA, Ltd., based in Manati, Puerto Rico; Inyx Pharma Limited, near Manchester, England; and Inyx Canada, Inc. in Toronto. Inyx, Inc.'s corporate offices are in New York City. For more information, please visit: http://www.inyxinc.com/. Safe Harbor Statements about Inyx's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. Since these statements involve risks and uncertainties and are subject to change at any time, the Company's actual results could differ materially from expected results. For more information, please contact: Jay M. Green, Executive Vice President Inyx, Inc. INYX, INC. Consolidated Statement of Operations (expressed in thousands of U.S. dollars, except per share amounts) For the Three Months Ended June 30, 2005 2004 (Unaudited) Net revenues $8,501 $2,774 Cost of sales 5,864 2,910 Gross profit 2,637 (136) Operating expenses: Research and development 590 112 General and administrative 4,585 2,195 Selling 40 76 Depreciation and amortization 555 124 Amortization of intangible assets 362 42 Total operating expenses 6,132 2,549 Loss from operations before interest and financing costs and income tax benefit (3,495) (2,685) Interest and financing costs 1,534 698 Loss before income tax benefit and extraordinary item (5,029) (3,383) Income tax benefit - - Net loss before extraordinary item $(5,029) $(3,383) Extraordinary item 917 - Net loss $(4,112) $(3,383) Basic and fully diluted loss per share before extraordinary item $(0.13) $(0.12) Basic and fully diluted earnings per share from extraordinary item 0.02 - Basic and fully diluted loss per share $(0.10) $(0.12) Weighted average number of shares used in computing basic and fully diluted loss per share amounts 39,983,983 28,747,582 INYX, INC. Consolidated Statement of Operations (expressed in thousands of U.S. dollars, except per share amounts) For the Six Months Ended June 30, 2005 2004 (Unaudited) Net revenues $11,178 $7,300 Cost of sales 8,399 6,821 Gross profit 2,779 479 Operating expenses: Research and development 947 399 General and administrative 6,426 4,299 Selling 174 160 Depreciation and amortization 716 276 Amortization of intangible assets 409 84 Total operating expenses 8,672 5,218 Loss from operations before interest and financing costs, income tax benefit and extraordinary item (5,893) (4,739) Interest and financing costs 6,146 1,724 Loss before income tax benefit and extraordinary item (12,039) (6,463) Income tax benefit - 393 Net loss before extraordinary item $(12,039) $(6,070) Extraordinary item 917 - Net loss $(11,122) $(6,070) Basic and fully diluted loss per share before extraordinary item $(0.31) $(0.21) Basic and fully diluted earnings per share from extraordinary item 0.02 - Basic and fully diluted loss per share $(0.28) $(0.21) Weighted average number of shares used in computing basic and fully diluted loss per share amounts 39,144,672 28,747,582 DATASOURCE: Inyx, Inc. CONTACT: Jay M. Green, Executive Vice President of Inyx, Inc., Web site: http://www.inyxinc.com/

Copyright