Lower revenue Than Expected for Innovex

Innovex provided the following updates regarding
its strategic debt and equity initiatives and operating performance for
its fiscal 2008 second quarter.

Innovex has retained Baker Tilly Corporate Advisory Services (BTCAS) to
assist in refinancing the company’s debt and
to explore additional capital structure alternatives including equity
infusions. BTCAS is a member of the Baker Tilly International Accounting
Group.

Revenue for the company’s fiscal 2008 second
quarter will be lower than expected as a result of the continued delay
in the ramp of a new actuator flex customer and a recent flat panel
display customer push out of several new products which were scheduled
to begin production this quarter. Although the company is seeing the
operating improvements forecast in its earnings call, the negative
impact of the lower revenue plus the effects of the weakening dollar
will result in lower than expected gross margins for the second quarter.

“While we have resolved the performance issue
causing the delayed ramp up of the new actuator flex product, our
ability to prove we have achieved the required performance levels has
taken longer than expected due to the lengthy and thorough process that
is required with this customer,” stated Terry
Dauenhauer, Innovex’s President and Chief
Executive Officer. “We still feel confident in
our ability to ramp our volume with this new customer as we were given
one of their top supplier ratings in the first assessment they provided.”

Innovex, Inc.