EDMONTON, ALBERTA--(CCNMatthews - Jan. 11, 2005) - CV Technologies Inc. (CVT)
(TSX VENTURE:CVQ) today released its preliminary sales figures for the first
quarter of 2005 showing preliminary gross sales of $11.3 million - an increase
of 542% over the same quarter in 2004 of $1.76 million.
CVT president and CEO, Dr. Jacqueline Shan said, "We had high expectations for
this quarter. It seems we've achieved our goal. These figures are the result of
all the hard work and planning we have done in developing brand awareness and
expanding our distribution network in eastern Canada, while further
strengthening same store sales in western Canada."
CV Technologies also released its annual financial statements for fiscal 2004 -
a benchmark year in CVT's history marking the first profitable year since it
was founded in 1992. CVT posted a net profit of $150,918 while at the same time
continuing a strong program of clinical trials and R&D activities which further
differentiates the Company from its competitors.
The 2004 improvement in performance is attributable to 1) increase in sales of
316% from $1,543,326 in 2003 to $6,416,732 in 2004, 2) improvement in gross
margin by 6.9% as a result of reducing the costs of goods sold resulting from
greater operating efficiencies as well as economies of scale, and 3) an overall
reduction in expense to sales ratio from 156% of sales in 2003 to 64% in 2004.
CVT is continuing to aggressively manage operating costs to ensure maximum
return for shareholders.
Dr. Shan said, "CVT's strong sales performance is attributable to a successful
product awareness strategy involving significant media coverage resulting from
science and business events as well as a major advertising campaign in print
and broadcast. Developing new sponsorships and retail partners were also
critical elements in our efforts."
"Recognizing our growth, we have appointed Gordon Brown, CGA - a skilled and
experienced business executive to assume the position of Chief Financial
Officer," said Dr. Shan. Mr. Brown has more than 15 years experience in
corporate finance and has had direct experience in implementing systems and
controls to manage companies experiencing accelerated growth.
Dr. Shan said, "2004 certainly was an exciting year for our company marked by
many achievements. At the same time it's clear that 2005 is offering us a
chance to do even better. We have a strong foundation and we continue to put
into place strategies to manage our growth in a year of great potential."
ABOUT CV TECHNOLOGIES INC.
CV Technologies is a biotechnology company founded in 1992. It aims to become a
global leader in the development and commercial of safe and effective, evidence
based, natural therapeutics for disease prevention and health maintenance.
CVT's lead product, COLD-fX(R) strengthens the immune system and is widely used
as a leading anti-cold, anti-flu, non-prescription drug. COLD-fX is patented
and its unique mechanism of action is developed and standardized according the
Company's ChemBioPrint technology, a patented process that precisely identifies
the chemical profile and biological activity of patented multi-active
components-based natural therapeutics. This is a combination of chemical and
pharmacological fingerprint that ensures each batch of products delivers
verifiable and provable health benefits, and is both safe and consistence with
This news release contains forward-looking statements that involve risks and
uncertainties, which may cause actual results to differ materially from the
statements made. For this purpose, any statements that are contained herein
that are not statements of historical fact may be deemed to be forward-looking
statements. Without limiting the foregoing, the words "believes",
"anticipates", "plans", "intends", "expects" and similar expressions are
intended to identify forward-looking statements. Such risks and uncertainties
include, but are not limited to, the need for capital, changing market
conditions, completion of clinical trials, patient enrolment rates, uncertainty
of pre-clinical, retrospective and early clinical trial results, the
establishment of manufacturing processes and new corporate alliances, the
timely development, regulatory approval and market acceptance of the Company's
products, and other risks detailed from time to time in the Company's filings
with Canadian securities authorities.
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