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Advance Nanotech Reports First Quarter 2008 Financial Results
Date:5/19/2008

d Bret Bader, incoming CEO of Advance Nanotech, Inc.

Mr. Bader continued, "Our goal for 2008 is to penetrate new and existing markets, continue to grow our patented intellectual property and build successful distribution partnerships. We have made progress in all three fronts thus far in 2008. With the core sensor built, our focus now is on developing application specific interfaces that provide the end user with a superior chemical detection product suited to their needs. In parallel, we are continuing to achieve milestones in the miniaturization and cost optimization of the surrounding electronics. This will enable us to provide a fully integrated, reprogrammable, chemical detection system that will set the standards for detection performance and system miniaturization. Our research and engineering efforts are further enhancing our already profound value proposition for existing chemical detection requirements and enabling new deployment scenarios currently unachievable. In addition to these commercial milestones, we are simultaneously continuing to right-size and reduce the operating costs of the combined organization. We anticipate rising gross margins during 2008 through both improvements to our manufacturing process as well as increased contract volumes. In addition, we intend to make meaningful improvements to our balance sheet over the remainder of the year as we move towards achieving cash flow profitability."

The Company reported revenues for the first quarter of approximately $671,000, a nearly four-fold increase from the revenues in the first quarter of 2007 of $140,000. The increase in first quarter revenues were the direct result of Owlstone shipping its Lonestar and Owlstone Vapor Generator products along with contracted, instructional and set-up services provided to customers and government grant revenue. As stated in previous guidance, the Company continues to expect to achieve $7.7 million in revenues for the current year.

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SOURCE Advance Nanotech, Inc.
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