AKR.L Regulatory News (AKR)

Embargoed: 0700hrs, 17 September 2012

Akers Biosciences, Inc.

("ABI" or the "Company")

Interim Results for the Six Months Ended 30 June 2012

ABI, a leading designer and manufacturer of rapid diagnostic screening and testing products, announces its interim results for the half year ended 30 June 2012.

Financial Summary

§ Revenue totalled $787,194 (H12011: $1,090,000)

§ Adjusted EBITDA: ($782,580) (H12011: ($537,469))

§ Adjusted Loss Before Tax: $1,023,283 (H12011: $838,352)

§ Gross Profit Margin: 50% (H1 2011: 66%)

§ Administrative expenses reduced by 31% from H1 2011

§ Company continues to be debt free with current assets in cash and cash equivalents of $482,950 (H1 2011: $2,598,094)

Operational Highlights

§ PIFA Heparin/PF4 Rapid Assay revenues increased by 5% in comparison to H1 2011

§ BreathScan and private-labeled versions of the Company's breath alcohol detector product revenues remained on par with H1 2011

§ The Company's breath alcohol detector technology granted Australian Standard certification trademark, which cleared the commercial pathway for product sales in Australia, New Zealand, South Africa and many other countries through ABI's distribution partner, BreathScan International Ltd.

§ Completed commercialization tasks related to the launch of the PIFA PLUSS PF4 product line extension to commence shipping late Q3 2012

§ Established relationship with nutraceutical sales leader with expertise in multilevel marketing to drive selling initiatives for the Company's first-in-class, oxidative stress level monitoring system

Post H1 2012 Developments

§ Initiation of testing of the Company's breath alcohol detectors to receive certification by the French government against the French Standard, NF X 20-702. The Standard defines the specifications that chemical breath alcohol detectors must meet in order to be sold to consumers in France. As of 1 July 2012, a law was enacted mandating French motorists to equip their vehicles with two, "NF-compliant" breath alcohol detectors. As of 1 November 2012, motorists that fail to produce an operational breathalyzer kit when asked by police will be subject to immediate enforcement action including demerit points against their driver's license and a fine. With approximately 34 million registered vehicles in France, and a requirement for any tourist vehicles to also comply with this law, this represents a significant potential market.

§ Completed $.0.675M private equity raise in September 2012 through the sale of 30 million common shares and 10 million preferred shares

Thomas A. Nicolette, President and Chief Executive Officer, commented,

"The Company's goals for the first half of 2012 were to continue revenue growth for ABI's flagship products, while reducing administrative expenses and streamlining our manufacturing processes, all in preparation for the US launch of the PIFA PLUSS PF4 product line extension and increased manufacturing demand for breath alcohol detectors commencing H2 2012.

"With these developments in mind, the Board of Directors is confident that the Company will accelerate revenue generation in the second half of 2012. We will expand adoption of the growing PIFA, HIT-testing product franchises through our relationships with our US distribution partners and aggressive support from our dedicated technical sales force. Discussions with distributors in Europe, the Middle East and China have also commenced and are expected to be solidified in 2012.

"The recently-issued French decree requiring that each automobile be equipped with two, "NF-compliant" .05% disposable alcohol detectors is a development which is projected to generate incremental revenues in H2 2012 and beyond. The emergence of such a regulatory driver has the potential to deliver opportunities for ABI's future revenue growth given the Company's ability to quickly adjust manufacturing to meet the breath alcohol testing specifications of individual countries. We look forward to keeping our valued and ever-supportive investors abreast of our commercial progress aimed at elevating shareholder value in the short-term and into the foreseeable future."

Enquiries:

Thomas A. Nicolette

President and CEO

Tel. +1 856 848 8698

Antony Legge or Emma Earl

Daniel Stewart & Company plc (Nomad and Broker)

Tel. +44 (0)20 7776 6550

Chairman's & Chief Executive's Joint Statement

An overview of the Company's performance for the six months ended 30 June of the current financial year is provided below.

Financial Review

Revenue in the first half of 2012 was $797,194 (H12011: $1,090,000). Adjusted EBITDA was ($782,580) (H12011: ($537,469)). Adjusted Loss before Tax was $1,023,283 (H12011: $838,352). The Company continues to be debt-free with current assets in cash and cash equivalents of $ 482,950 (H12011: $2,600,000). Gross Profit Margin was 50% (H12011: 66%).

Product Review

Sales momentum for the PIFA Heparin/PF4 Rapid Assay continued in H1 2012 as the Company's technical sales team established closer working relationships with sales representatives from Cardinal Health and Fisher HealthCare to help drive demand for the product in US hospital laboratories. This multi-faceted selling effort delivered revenues that slightly exceeded H1 2011 totals. With the commercial availability of the PIFA PLUSS PF4 product line extension slated for late Q3 2012, in tandem with the finalisation of distribution agreements with European, Middle Eastern and Chinese distributors in 2012 and 2013, the Company's rapid Heparin-Induced Thrombocytopenia ("HIT") screening tests should contribute substantially to ABI's 2012 financial performance.

Products that utilize ABI's MPC Biosensor breath condensate-testing technology were on par with revenue totals from the same period in the prior year. However, from the start of early H2 2012, domestic and international orders for BreathScan, the Company's breath alcohol detector brand, and private-labelled versions of the same, have increased significantly. Since 2006, ABI's detectors have met the Food and Drug Administration's FDA-requirements for over-the-counter use. In late H1 2012, the Company's breath alcohol detector technology was awarded the Australian Standard certification trademark, thus clearing the commercial pathway for product sales in Australia, New Zealand, South Africa, and many other countries.

In Q2 2012, ABI initiated testing of the Company's breath alcohol detectors to receive certification by the French government against the French Standard, NF X 20-702. The "NF Standard" defines the specifications that disposable breathalysers must meet in order to be marketed to French consumers. As of 1 July 2012, a law was enacted mandating French motorists to equip their vehicles with two, "NF-compliant" breath alcohol detectors. As of 1 November 2012, motorists that fail to produce an operational breathalyzer kit when asked by police will be subject to immediate enforcement action and may be fined 11 euros. With approximately 34 million registered vehicles in France, and a requirement for tourist vehicles to also comply with this law, the French breathalyser market represents a significant opportunity for the Company and the legislation could also spark similar alcohol safety mandates in other EU countries.  

The Company had previously entered into a non-exclusive distribution agreement with Breathscan International limited ("BSI")in which Akers has a 20% interest. To capitalise on the opportunity in France, the Company signed an agreement with Sono International, the 80% shareholder in BSI with offices in France and the UK, granting them an exclusive license to market private-labelled versions of the Company's breath alcohol detectors outside of North America. Under the terms of the agreement and in return for being granted exclusivity, Sono have agreed to pay a fee of $1m conditional upon, inter alia, the Breathscan produce being granted the NF Standard, a decision in respect of which is excepted to be granted in the next few weeks. In addition, Sono has agreed to minimum orders of $1.275 million over the next three years although the level of demand is expected to far exceed that.

In addition, the Company's H1 2012 product development initiatives within the MPC platform continued to extend into the nutraceutical marketplace. ABI's non-invasive oxidative stress level monitoring system, VIVO, pairs disposable, breath condensate detection tubes with a photometric reader. The quantitative VIVO result provides individuals or their healthcare providers with feedback that may help to customize an exercise regimen or adjust dietary or supplement in-take to meet personal health and fitness goals. The Company's Breath Ketone "Check" is being marketed as a companion test to dietary supplements, allowing a user to monitor a state of ketosis in order to burn fat. Given the attractiveness of multilevel marketing within the personal care, weight loss and chiropractic health industries, in late H1 2012 ABI began an initiative to gain an initial footing in the multibillion dollar, nutraceutical space. Measurable sales activity is expected during H2 2012.

Outlook

For the remainder of 2012, ABI has a two-fold focus aimed at delivering measurable year-end results: 1) grow the Company's HIT-screening franchise through the Q3 introduction of the PIFA PLUSS PF4 rapid test, and 2) seize the breath testing opportunities within the alcohol safety and nutraceutical industries by supporting the sales efforts of our specialized distributors. The organization is now primed for success and we are confident in the Company's ability to deliver H2 performance results that will enhance shareholder value.

Raymond F. Akers, Jr. PhD - Executive Chairman

Thomas A. Nicolette - President and Chief Executive Officer

--17 September 2012