Imagenetix Reports Record Quarter

August 16, 2005

Sales Hit All Time High - Up 142%. Before-Tax Income Soars 174%. Company Reports Ten Consecutive Quarters of Operating Profits

San Diego, CA – August 16, 2005 – Imagenetix, Inc. (Symbol: IAGX), www.imagenetix.net, a company focused on inflammation and inflammation related markets, announces the results for the first fiscal quarter ended June 30, 2005. For the first fiscal quarter ended June 30, 2005, the company reported revenue of $2,869,745 a 142% increase compared to $1,186,163 reported in the same quarter of the prior fiscal year. For the first quarter, the company reported income before taxes of $538,311 compared to income before taxes of $196,454 a 174% increase for the same period last year. For the first fiscal quarter, the company reported net income of $304,011 compared to $290,029 for the same quarter of the prior fiscal year. For the first fiscal quarter ended June 30, 2005, income taxes amounted to $234,300 compared to a credit of $93,575 for the same period last year, resulting in a $327,875 increase in income tax expense compared to the same quarter last year.

Bill Spencer, President of Imagenetix, said, “With record volume and ten consecutive quarters of operating profits, business is trending very positively for the company. During the first quarter, we had a healthy increase in sales as a result of the continued acceptance of Celadrin® oral for joint function and mobility, and Celadrin® topical for aches and pains, into the mass market, a process that began in November, 2004. During its first 8 months of introduction to the mass market, Celadrin® has now expanded to over 20,000 stores across the country, with the number of stores and Celadrin® products per store increasing on a consistent basis. Also, during the first quarter, Celadrin® began to be successfully marketed with glucosamine, a popular nutritional compound in the area of joint health. Consumer acceptance of a Celadrin®-Glucosamine product (Glucosadrin™) represents a substantial growth opportunity for the Celadrin® brand.”

“As sales are increasing, we are very focused on investing in the company and controlling which expense categories will increase,” continued Mr. Spencer. “Increased expenses for the first fiscal quarter reflected our cooperative investment in a media campaign associated with branding Celadrin®. During the quarter, we also invested significantly in clinical studies, and we incurred increased expenses in consulting, insurance, accounting, and taxes, as well as a non-cash expense in the issuance of warrants. We believe our investments in the advancement of science combined with our intellectual property endeavors in the area of pharmaceutical compounds, as well as our investments in creating brands, will result in substantial value to our shareholders in both the near future as well as the long-term.”