Sales and Earnings Increase at Imagenetix as Company Reports Seventh Consecutive Quarter of Profitability

November 23, 2004

SAN DIEGO--(BUSINESS WIRE)--Nov. 23, 2004--Imagenetix, Inc. (OTCBB:IAGX - News), www.imagenetix.net, an innovator of scientifically tested, natural-based, proprietary bioceutical products that enhance human and animal health, today announced results for the second fiscal quarter and six-month fiscal period ending September 30, 2004.

For the second fiscal quarter ended September 30, 2004, the company reported revenue of $1,034,146.00, an 11% increase compared to $928,481.00 reported in the same quarter for the prior fiscal year. For the second quarter, the company reported net income of $17,812.00, a 29% increase compared to $13,853.00 reported for the same quarter for the prior fiscal year. Income before income tax expense for the second fiscal quarter amounted to $121,964.00, but also included was a relatively higher overall income tax expense of $104,152.00, yielding the net income of $17,812.00.

For the fiscal six months ended September 30, 2004, the company reported revenue of $2,220,309.00, a 19% increase compared to $1,856,666.00 reported in the same six-month period for the prior fiscal year. For the six months, the company reported net income of $307,841.00, or $.03 per share, a 241% increase compared to $90,153.00, or $.01 per share reported for the same six months for the prior fiscal year.

"Achieving profitable quarters while validating science has enabled Imagenetix to expand its branded products into the mass market," reported Bill Spencer, CEO. "Last month, in early October, and not reflected in sales or earnings figures above, the company began fulfilling some initial stocking orders for the mass markets which will be reflected in our third quarter numbers ending 12/31/04 and scheduled to be reported in mid February. Indications are that initial stocking orders could lead to a 50% top line growth or more for quarter three compared to quarter two. During our fourth quarter ending March of 2005, we expect several mass market distributors to be making their initial sales of Imagenetix branded products in food, drug, and mass market stores dispersed around the country. Based on consumer acceptance, sales could grow rapidly in the quarters and years to follow."