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Press Releases

SQI Diagnostics Reports Fourth Quarter and Year End Financial Results

Released: Jan 23, 2009

Toronto, Canada, March 10, 2009 - SQI Diagnostics Inc. (TSX-Venture: SQD), a medical systems automation company focused on evolving laboratory-based biomarker testing, today announced its financial and operational results for the fourth quarter and year ended September 30, 2008.

Highlights

• Announced positive results from external validation tests for its automated SQiDworks™ platform and its lead test, the QuantiSpot RA™ microarray consumable, which were conducted at The Cleveland Clinic in Cleveland, Ohio, and Mount Sinai Hospital in Toronto, Canada
• Received ISO 13485 Certification for its quality management system
• Subsequent to year end, submitted a FDA 510(k) Medical Device License Filing for its SQiDworks platform and QuantiSpot RA microarray consumable test
• Subsequent to year end, received a Class II Medical Device License from Health Canada for its SQiDworks platform and QuantiSpot RA microarray consumable test

"The past year was exceptional for SQI from a product development and operational perspective," said Claude Ricks, CEO of SQI Diagnostics. "Our commercialization strategy progressed significantly, highlighted by our 510(k) filing to the FDA for our automated platform and microarray consumable. Despite the challenging market conditions, we also fortified the Company's cash position by raising more than $9 million over a period of eight months. We are looking forward to the upcoming fiscal year as an opportunity for SQI to steadily build on its commercial initiatives and expand its menu of autoimmune consumable tests."

Financial

On May 4, 2007, the Company began trading on the TSX Venture under the symbol SQD. In 2007, SQI Diagnostics Inc. changed its year end from December 14 to September 30.

For the quarter ending September 30, 2008, SQI recorded a net loss of $926,404 or $0.05 per share, compared to $946,214 or $0.05 per share for the quarter ending September 30, 2007. The decreased loss for the quarter ending September 30, 2008 was primarily related to the recognition of a cash-based Scientific Research and Experimental Development (SRED) tax credit, compared to the same quarter in 2007 when no SRED credit recognition occurred.

Before the offsetting effect of the SRED tax credit, R&D expenses for the quarter ending September 30, 2008 were $704,205 compared to $682,877 for the quarter ending September 30, 2007. The increased R&D costs before SRED effects for the quarter ending September 30, 2008 was related primarily to higher R&D salary expense of $473,296 in the quarter ending September 30, 2008 compared to $447,319 the quarter ending September 30, 2007 with the net addition of two lab resources and a change in the composition of the lab team to a more senior group of scientists.

Corporate expenses, which include administrative salaries and related expenses; general and administrative expenses; advertising and promotion expenses; travel expenses; interest expenses and professional and consulting fees totaled $379,914 for the quarter ending September 30, 2008 compared to $314,648 for the quarter ending September 30, 2007. The primary reasons for the corporate expenses increasing from the fiscal period 2007 to 2008 were the shorter fiscal period in 2007, as well as an increase in leased space and thus, occupancy costs in fiscal 2008.

At September 30, 2008, current assets were $4,362,230 compared to $3,674,792 at September 30, 2007. Working capital as at September 30, 2008 was $3,244,418 compared to $3,417,917 at September 30, 2007. As at September 30, 2008, there were 22,217,478 common shares issued and outstanding.

Subsequent to the year end, the Company completed a non brokered private placement resulting in gross proceeds of CDN$4,664,375 through the issuance of 3,731,500 common shares at $1.25 per common share. The shares issued through the private placement are subject to a four-month hold period.

Management believes that the cash on hand at September 30, 2008, combined with that raised subsequent to the year end, will be sufficient to fund Company operations to the middle of 2010.

Detailed financial statements and the MD&A are available at www.sedar.com.

About SQI Diagnostics
SQI Diagnostics is a medical systems company that develops proprietary technology in multiplexing, miniaturization and automation. SQI provides laboratories the ability to simultaneously analyze multiple biomarkers, deliver accurate and quantitative patient results in less time, significantly reduce labor, and increase profits...All in One Drop. Please visit www.sqidiagnostics.com.

For further information please contact:

Certain information in this press release is based on beliefs and assumptions of the Company's senior management and information currently available to it that may constitute forward-looking information within the meaning of securities laws. Such statements reflect the current views of the Company with respect to future events and are subject to certain risks and uncertainties. Actual results, events, and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements.

This release was prepared by management of the Company who takes full responsibility for its contents. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.