Imagenetix Second Quarter Revenue up 95 Percent

November 22, 2005

SAN DIEGO--(BUSINESS WIRE)--Nov. 22, 2005--Imagenetix, Inc. (OTCBB:IAGX - News), an innovator of scientifically tested, natural-based, proprietary bioceutical products that enhance human health, today announced that, for the second fiscal quarter ended September 30, 2005, it reported revenue of $2,016,295, a 95 percent increase on revenues of $1,034,146 reported in the same quarter of the prior fiscal year. The company reported a net loss of $5,075,213, or $.48 per fully diluted share, in the second quarter of fiscal 2005, compared to net income of $17,812, or $.00 per fully diluted share, for the same quarter in fiscal 2004.

Imagenetix' excellent revenue performance in the second fiscal quarter was primarily attributable to accelerating mass market sales of the company's flagship bioceuticals, Celadrin® oral for joint function and mobility, Celadrin® topical for aches and pains, and a recently introduced product, Celadrin® combined with glucosamine. During the second fiscal quarter these products were picked up by an additional 10,000 drug chain and mass market retail outlets, bringing their total by September 30, 2005, to 30,000 retail outlets across the U.S. and Canada.

The company's bottom line performance in the quarter, though, was impacted by increases in certain operational expenses relating to its continuing media campaign for the Celadrin products and a one-time, non-cash charge of $5,284,882 related to extending the expiration dates on warrants and stock options issued in 2000 and 2001.

Exclusive of this non-cash charge, the company was profitable in the second fiscal quarter.

For the first six months of fiscal 2005, Imagenetix reported revenues of $4,886,040, a 120 percent increase on revenues of $2,220,309 reported for the first six months of fiscal 2004. Imagenetix reported a net loss of $4,771,202, or $.45 per fully diluted share, for the first six months of fiscal 2005, compared to net income of $307,841, or $.03 per fully diluted share, for the same period in the prior fiscal year. The six months was impacted by the same one-time, non-cash charge of $5,284,882 related to extending the expiration dates on warrants and stock options issued in 2000 and 2001.

In the third fiscal quarter of 2005, the company is expected to reduce overall operating expenses, said chief executive officer, William P. Spencer, returning Imagenetix to improved profitability.

"As our products begin to demonstrate a high level of brand recognition in the retail marketplace, we should be able to control certain expense categories and thereby achieve enhanced profit margins," said Mr. Spencer. "We also anticipate being able to introduce several new products in the coming quarters that should drive growth and profitability."

Mr. Spencer said he expected to be able to make such new product announcements in the coming months.

Imagenetix, Inc. develops, formulates, private-labels, and produces nutritional supplements, over-the-counter topical creams, skin care products and pharmaceuticals for inflammatory-related markets. For more information, please visit http://www.imagenetix.net/.