Imagenetix Reports Fourth Quarter and Year-End Results

June 28, 2007

• Fourth Quarter Revenues Increases More Than 120% From Prior Year
• Fourth Quarter Net Income Before Tax $107,000 Versus Loss of $990,000 in Same Period Last Year
• Sees Solid Gains in Sales and Profits in Fiscal 2008

SAN DIEGO, June 28 /PRNewswire-FirstCall/ -- Imagenetix, Inc. (OTC Bulletin Board: IAGX - News), announced today results for its fourth fiscal quarter and fiscal year ended March 31, 2007. Net sales for the quarter were $2,270,000 an increase of 122% from the $1,021,000 reported for the same period of the prior fiscal year. Net sales for the fourth fiscal quarter also increased by 114% from the previous quarter ended December 31, 2006.

For the year net sales decreased by 26.8% to $5,597,000 from $7,650,000 reported in the prior fiscal year. For the full year gross margins were 47% compared to 46% for the prior fiscal year.

Net income before tax for the fourth fiscal quarter increased to $107,000 from the loss of ($990,000) incurred during the same quarter of the prior fiscal year. For the year the net loss before tax was ($806,000) compared to ($1,217,000) in the prior fiscal year.

Net loss for the year was ($667,000) or $(.06) per share compared to a loss of ($593, 000) or $(.06) per share incurred in the prior fiscal year.

As of March 31, 2007 the Company had a cash balance of $959,000, a current ratio of 7 to 1 with current assets of $4,583,000 and current liabilities of $651,000. Long term debt was reduced to $37,000.

Commenting on the results for the year Mr. William Spencer, Imagenetix's Chief Executive Officer said, "Fiscal 2007 was a transitional year for the Company. I am pleased with the results, particularly of those achieved during our fourth quarter where we returned to profitability.

During the year we began for the first time to sell our own branded products to the mass markets. We are now in over 10,000 locations for our Inflame Away (TM) products and have recently begun an advertising program to support the retail launch.

Our second group of branded products, Moractives (TM), Daily Vegetables and Daily Fruits and Berries are now being sold at Costco Online and we expect to begin distribution into the mass market in the fall of this year.

During the year we have made substantial progress in the development of our proprietary compound 1-TDC for the prevention and treatment of periodontal disease. We have completed two successful studies at Boston University; results of the first have been recently published in The Journal of Periodontology. We are now in the process of determining the process to begin an FDA submission for the product which we believe can be a major breakthrough.

I am excited about the prospects for Imagenetix and believe we will continue to see growth during fiscal 2008 with solid gains in sales, gross margins and profits."