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Synthetech Reports Second Quarter Fiscal 2009 Results
Date:11/10/2008

etech's cash and cash equivalents were $128,000 at September 30, 2008, compared to $1.1 million at March 31, 2008. Synthetech's working capital was $4.4 million both at September 30, 2008 and March 31, 2008. In May 2008, Synthetech borrowed $550,000 to expand its large-scale reactor capacity and to install a distillation column, in order to meet increased customer demand and permit the recycling of certain spent solvents for cost and waste reduction. The distillation column and solvent recovery system are now in operation. The expanded reactor capacity is expected to be on line later in November 2008.

On November 5, 2008, Synthetech borrowed an additional $500,000 to augment Synthetech's working capital in response to customer large order demand.

Synthetech, Inc.

Condensed Statements of Operations

(unaudited)

Three Months Ended Six Months Ended

September 30, September 30,

(in thousands, 2008 2007 2008 2007

except per share data)

Revenue $3,291 $2,981 $8,208 $7,153

Cost of revenue 2,649 2,838 6,277 5,821

Gross income 642 143 1,931 1,332

Research and development 335 346 632 674

Selling, general and

administrative 640 638 1,318 1,363

Total operating expense 975 984 1,950 2,037

Operating loss (333) (841) (19) (705)

Interest income - 3 5 12

Interest expense (34) (23) (58) (49)

Loss before income taxes (367) (861)
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SOURCE Synthetech, Inc.
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