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Hamilton Thorne Announces 2011 First Quarter Financial Results


June 9, 2011 - Beverly, Ma And Toronto

Hamilton Thorne Ltd. (TSX-V: HTL),a leading provider of advanced laser systems for the regenerative medicine,fertility and stem cell research markets, today reported operational andfinancial results for the first quarter ended March 31, 2011.

"Hamilton Thorne achieved strong year-over-year growth for the firstquarter of 2011, with the Company recording a 22% increase in sales overthe same period last year. This growth was primarily driven by robust lasersales, especially in key markets such as cell biology, regenerativemedicine and stem cell research," said Meg Spencer, Chief Executive Officerof Hamilton Thorne Ltd. "Our R & D team continues to innovate on our sleeklaser design and increase the efficiency and accuracy of our products,helping our customers unlock the therapeutic potential for treatinglife-threatening and debilitating diseases."


Highlights

-- The Stiletto™ Laser System continues to perform well at several
prestigious beta sites. The Stiletto successfully automates the
process of splitting stem cell colonies into equal sections for easy
removal of the sections to a new growing environment and the
obliteration of thousands of unwanted cells in seconds to purify
samples. Beta testers have shown that the non-contact capability of
the laser prevents contamination, minimizes damage to the cells and
avoids change in gene expression through multiple generations of
colony growth.

-- Hamilton Thorne has also secured distribution or OEM deals for
accessory products including the Tokai Hit stage warmers and the
20/20 stage coolers. As temperature control is very important for
many cell procedures, these partnerships should provide Hamilton
Thorne customers with better options for cell maintenance.

-- In Q1, Hamilton Thorne's products were referenced in over 14 new
peer-reviewed scientific articles by customers at world-leading
research labs and academic institutions. Hamilton Thorne's fertility
products and advanced laser systems were published in several
prestigious scientific journals such as Methods of Molecular
Biology, Human Reproduction and Biology Reproduction.

-- The Company completed an offering of 10% convertible unsecured
subordinate debentures ("Debentures") for aggregate gross proceeds
of approximately US $650,000. The net proceeds from the sale of the
Debentures will be used for potential product line acquisitions and
in-licensing, research and development expenses and for general
working capital purposes.

Financial Results

All amounts are in US dollars, unless specified otherwise, and resultsexpressed in accordance with the International Financial ReportingStandards ("IFRS"), which replaces Canadian Generally Accepted AccountingPolicies ("GAAP") effective January 1, 2010 for all publicly accountableenterprises in Canada.

For the three months ended March 31, 2011, the Company recorded sales of$1,445,000 compared to $1,181,000 for the same period last year. TheCompany's total sales increased 22% for the quarter over the previous year,and was attributable to increased demand for our existing products andimproved budget availability for capital equipment purchases across allcustomer types and geographic regions.

Operating expenses were $1,500,000 for the quarter ended March 31, 2011, upfrom $1,211,000 during the previous year, an increase of $289,000, or 24%.This increase in operating expenses represents continued strategicinvestment in the growth of the Company.

Research and development (R&D) expenses increased 20% to $299,000 due tocontinued development of new products. Sales and marketing expensesincreased 31% to $634,000 due to the expansion of our sales force,commission expense on higher sales volume, and increased variable costs ofselling.

General and administrative (G&A) expenses increased 19% to $566,000 dueprimarily to increases in staffing and a foreign currency valuationadjustment related to the convertible debentures issued in August 2010 andMarch 2011, which were issued in Canadian dollars.

Net interest expense increased to $127,000 for the quarter ended March 31,2011 from $70,000 for the prior year period. The increase was due to theinterest expense, both coupon and accreted, on the Company's convertibledebentures.

The net loss for the quarter ended March 31, 2011 was $746,000, an increaseof 31% over the net loss of $571,000 for the same period of the previousyear. The increased loss was due primarily to the additional investmentsby the Company in research, product development, sales and marketing,additional general and administrative expenses, and additional interestexpense, partially offset by increased gross profit resulting fromincreased sales.

As of March 31, 2011, the Company had 24,415,157 common shares, 6,134,441warrants, 4,432,022 options, and 440,001 agent compensation optionsoutstanding.

The financial statements are available on www.sedar.com.

About Hamilton Thorne Ltd. (www.hamiltonthorne.com)

Hamilton Thorne provides novel solutions for Life Science that reduce cost,increase productivity as much as ten-fold, and enable researchbreakthroughs in regenerative medicine, stem cell research and fertilitymarkets. The Company's new Staccato™ and Stiletto™ laser systems alsooffer significant scientific advantages in the fields of developmentalbiology, cancer research and advanced cell biology. Hamilton Thorne's laserproducts attach to standard inverted microscopes and operate as roboticmicro-surgeons, enabling a wide array of scientific applications andprocedures. Each member of Hamilton Thorne's family of products serves adifferent research purpose. By simply turning the microscope turret,researchers can have a new world of scientific capabilities at theirfingertips.

Hamilton Thorne's growing customer base includes pharmaceutical companies,biotechnology companies, fertility clinics, university research centers,and other commercial and academic research establishments worldwide.Current customers include world-leading research labs such as HarvardUniversity, MIT, Yale, McGill University, DuPont, Monsanto, Charles RiverLabs, Jackson Labs, Merck, Novartis, Pfizer, Oxford University, andCambridge.

Neither the Toronto Venture Exchange, nor its regulation services provider(as that term is defined in the policies of the exchange), acceptsresponsibility for the adequacy or accuracy of this release.

Certain information in this press release may contain forward-lookingstatements. This information is based on current expectations that aresubject to significant risks and uncertainties that are difficult topredict. Actual results might differ materially from results suggested inany forward-looking statements. The Company assumes no obligation to updatethe forward-looking statements, or to update the reasons why actual resultscould differ from those reflected in the forward-looking statements unlessand until required by securities laws applicable to the Company. Additionalinformation identifying risks and uncertainties is contained in filings bythe Company with the Canadian securities regulators, which filings areavailable at www.sedar.com.


Financial results included below:

Hamilton Thorne Ltd.Consolidated Statements of Financial PositionFor the periods ended March 31, 2011 and December 31, 2010(Expressed in U.S. Dollars - unaudited) March 31, December 31, January 1, 2011 2010 2010 ----------- ----------- -----------AssetsCurrent Cash and cash equivalents 847,239 714,498 1,356,371 Accounts receivable 709,211 971,406 499,875 Inventories 621,984 544,170 512,300 Prepaid expenses and other current assets 47,448 58,241 72,689 Note receivable, officer - - 23,813 ----------- ----------- ----------- 2,225,882 2,288,315 2,465,048 Property and equipment 162,078 134,662 90,481 Other assets 113,553 111,968 72,454 ----------- ----------- ----------- Total assets 2,501,513 2,534,945 2,627,983 ----------- ----------- -----------LiabilitiesCurrent Accounts payable and accrued liabilities 1,448,816 1,412,831 1,171,562 Notes payable 93,515 104,460 83,037 Capital lease obligations, current 24,883 20,250 5,753 Deferred revenue 77,052 91,086 35,881 ----------- ----------- ----------- Total current liabilities 1,644,266 1,628,627 1,296,233 Capital lease obligations, non-current 46,926 37,295 7,904 Deferred revenue, long-term 79,486 79,486 - Long-term debt 6,740,942 6,121,015 5,050,000 ----------- ----------- ----------- Total liabilities 8,511,620 7,866,423 6,354,137 ----------- ----------- -----------Shareholders' Equity (Deficiency) Common shares 24,345,752 24,345,752 24,341,938 Warrants 353,495 349,019 344,949 Contributed surplus 670,806 607,535 291,500 Accumulated deficit (31,380,160) (30,633,784) (28,704,541) ----------- ----------- ----------- Total Shareholders' equity (deficiency) (6,010,107) (5,331,478) (3,726,154) ----------- ----------- ----------- Total Liabilities and shareholders' equity (deficiency) 2,501,513 2,534,945 2,627,983 ----------- ----------- ----------- Hamilton Thorne Ltd.Consolidated Statements of Operations and Comprehensive LossFor the three months ended March 31, 2011 and 2010(Expressed in U.S. Dollars - unaudited) 2011 2010 ---------- ---------- Sales 1,445,413 1,180,687Cost of sales 564,883 470,486 ---------- ---------- Gross profit 880,530 710,201 ---------- ---------- Expenses Research and development 299,447 250,307 Sales and marketing 634,177 485,687 General and administrative 566,261 474,878 ---------- ---------- Total expenses 1,499,885 1,210,872 ---------- ----------Loss from operations (619,355) (500,671) Other income (expense) Interest expense including accretion (127,021) (70,159) Interest income - 210 ---------- ---------- Net loss and comprehensive loss (746,376) (570,620) ---------- ---------- Loss per share Basic $ (0.03) $ (0.02) Diluted $ (0.03) $ (0.02) Weighted average number of common shares outstanding Basic 24,415,157 24,415,157 Diluted 24,415,157 24,415,157 Hamilton Thorne Ltd.Consolidated Statements of Cash FlowsFor the three months ended March 31, 2011 and 2010(Expressed in U.S. Dollars - unaudited) 2011 2010 --------- --------- Cash flows from operating activitiesNet loss for the year (746,376) (570,620) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 14,460 15,027 Non-cash interest expense/accretion 109,374 - Share-based payments expense 39,750 61,245 Changes in non-cash operating assets and liabilities: Accounts receivable 262,195 (82,091) Inventories (77,814) 309 Prepaid expenses and other current assets 10,793 30,554 Other assets (1,585) (57,000) Accounts payable and accrued liabilities (309) (17,632) Deferred revenue (14,034) 2,917 --------- --------- Net cash flows used in operating activities (403,546) (617,291) --------- ---------Cash flows from investing activities Purchase of capital assets (20,440) (37,096) --------- ---------Cash flows from financing activities Proceeds from debt 574,890 498,043 Payments on debt (18,163) (503,684) --------- --------- Net cash flows provided by (used in) financing activities 556,727 (5,641) --------- --------- Net Increase (decrease) in cash and cash equivalents 132,741 (660,028) Cash and cash equivalents, beginning of period 714,498 1,356,371 --------- --------- Cash and cash equivalents, end of period 847,239 696,343 --------- ---------Supplemental disclosure of cash flow information:Cash paid during the period for interest: 61,335 54,408 Supplemental disclosure of non-cash financing activities: Equipment acquired under capital lease 21,436 0

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For more information, please contact:

David Wolf
President
Hamilton Thorne Ltd.
978-921-2050
Email Contact

Lisa Rivero
Director of Corporate Communications
Hamilton Thorne Ltd.
978-921-2050
Email Contact

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