Epicore BioNetworks Inc. Strong Quarter Two Fiscal Year 2012 for the Period Ended 30 December 2011

EAST AMPTON, New Jersey, February 28, 2012 /PRNewswire/ --

A sales revenue increase of 45% over prior year quarter two (Q2) to $1.5 million set a Company quarter two record.- The shrimp aquaculture industry, which continues to grow at double digit rates, dominates Epicore sales.- The demand for shrimp remained high throughout the quarter, as it has done for much of calendar 2011.- Supply shortages caused by disease and natural disasters have pushed shrimp prices higher.- Higher shrimp prices increased the demand for Epicore's productivity enhancing products. The Epicore sales team and our distributors continued to add new customers and to pursue new applications for Epicore products.- Epicore continued a major initiative to increase its science resources, which should position the Company for significant future growth and increase the reliability of its manufacturing operations.- Some Q2 highlights were:

• Increased sales revenue 45% versus prior year Q2 to $1.5 million.
• Increased gross profit 52% versus prior year Q2 to $0.9 million.
• Generated another quarter of positive net income ($0.2 million vs. $0.03 million in prior year Q2).
• Achieved basic and diluted earnings per share of $0.01, up from $0.001 in prior year Q2.
• Increased EBITDA 267% to $0.4 million.
• Increased shareholders' equity 5% in the quarter to $4.4 million.
• Increased cash (at $1.7 million) 51% compared to prior year Q2.

Gross profit grew 52% due to the sales increase. Because of a more favorable sales mix Epicore gross margin (gross profit as a percentage of sales) increased 3%.- Operational expenses increased by 5% due to inflation, revenue driven costs, higher marketing travel expense, higher financial expense and one-time expense related to strategic initiatives.- Quarter two fiscal 2012 results include a US federal income tax expense of $0.13 million, along with $0.04 million for New Jersey and Ecuadorian taxes.- Net income of $0.2 million was 538% higher than fiscal 2011 because of higher gross profit and only modestly higher operating expenses, as the following results show (rounded to thousands in US dollars):

                         For the Quarter Ended December 30
                                     2011              2010
    Sales                       1,459,000         1,003,000
    Gross Profit                  947,000           623,000
    Operating Expenses            548,000           522.000
    Earnings Before Tax           383,000           101,000
    Income Tax Expense            177,000            68,000
    Net Income                    206,000            32,000
    EBITDA                        389,000           106,000

Cash at the end of September was $1.7 million, an increase of 51% over prior year quarter two, but was down 8% from Q1 due to strategic initiative spending.- With these funds, expected sales revenue growth and continued relatively low operating costs, management expects there will be sufficient cash to meet the fiscal year's financial requirements, to fund expansion of aquaculture and environmental remediation marketing efforts and to pursue new strategies for enhancing shareholder value.- In support of its growth strategy, the Company anticipates additional expenditure during fiscal 2012 in property, plant and equipment, through the addition of leased capital equipment and enhancements to its production facility in New Jersey, and in product development through its ongoing R&D programs.- This is expected to be financed by a combination of the Company's cash reserves, continued positive earnings and third-party financing.

The financial statements of the company have been prepared in accordance with International Financial Reporting Standards.- Epicore BioNetworks Inc. is a public corporation with a registered office in Calgary, Alberta, Canada and with shares listed on the TSX Venture Exchange (symbol EBN).- [Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.]

This press release contains forward-looking statements that involve significant risks and uncertainties.- The actual results, performance or achievements of the company might differ materially from the results, performance or achievements of the company expressed or implied by such forward-looking statements.- Such forward-looking statements include, without limitation, those regarding the future growth of the Company, expected improvements in the quality and reliability of manufacturing operations, acceleration of the Company's penetration into new business areas, the development plans of the company, the expected timing and results of such development and the expectation by management that there will be sufficient cash to meet the fiscal year's financial requirements.- We can provide no assurance that such development will proceed as currently anticipated, that the expected timing or results of such development will be realized or that the company will be able to generate sufficient cash to meet its obligations.- We are subject to various risks, including the uncertainties of product development, markets for our products and regulatory review, our need for additional capital to fund our operations, our reliance on collaborative partners, our history of losses, and other risks inherent in the biotechnology industry.

For further information:

Please contact: Mr. William P. Long (Chief Executive Officer) USA. Tel: +1-609-267-9118, Email:-Investors@EpicoreBioNetworks.com