Philom Bios Inc. announces its results for the nine months ended June 30, 2006.

Highlights:

• Financial
  
   
• Decline in year to date sales reflect difficult market conditions arising largely from a contraction of the pulse market in 2006, with some offset in sales growth on North American corn and soybean crop sectors.
   
• Year to date net earnings of $0.41 per share reflect effect of sales downturn plus impact of continuing commitment to research projects and market expansion costs.

On the results of third quarter sales of $4.8 million (2005 - $7.4 million) year to date net earnings are now $.9 million (2005 - $1.6 million). The decline in year to date sales, gross margins and earnings before extraordinary item over the prior year is largely the result of a contraction of key North American pulse crop acres. In addition, net operating costs for the year to date now total $5.5 million (2005 - $5.2 million), an increase of 6% due to our growing investment in research initiatives primarily related to North American corn and soybean markets, but offset by lower general and administrative costs from the prior year due to reduced legal costs.

President/CEO Calvin Sonntag comments, “Our business, like many others who serve the agricultural sector, clearly remains susceptible to the volatility in planting/seeding outcomes. Despite continued growth in our North American corn and soybean business, the changes in planted pulse acres, coupled with the general stress in the farm economy has reduced earnings well below last year’s year to date results. Regardless, we remain committed to serving the needs of our customers with fertility efficiency tools today and investing in innovative solutions that will meet their needs in the future.”

Full financial report available at http://www.philombios.ca/investor-quarterly.html

Philom Bios is a world leading Inoculant Company with over 70 employees across North America in a wide range of research, manufacturing, marketing, and management positions. Headquartered in Saskatoon, SK, Philom Bios is a Canadian public company serving the needs of farmers with high-value inoculants. Philom Bios has a 20+ year commitment to farmers through a dynamic partnership with distributors and leading retailers.