NeoGenomics Reports Third Quarter 2009 Results

FT. MYERS, Fla., Oct. 29 /PRNewswire-FirstCall/ -- NeoGenomics, Inc. (OTC
Bulletin Board: NGNM), a leading provider of cancer-focused genetic testing
services today reported its results for the third quarter of 2009.

Highlights:
-- Revenue increase of 44% versus Q3 08 to $7.3 million
-- Build-out of a full-service melanoma laboratory and commencement of a
large melanoma validation study
-- Significantly improved liquidity position

-- Douglas VanOort appointed Chief Executive Officer

Revenue increased by $2.2 million or 44% to $7.3 million in the third quarter
from $5.1 million in the same quarter last year. The number of tests
increased by 33% while average revenue per test increased by 8%. Gross profit
margin of 50% was essentially unchanged from last year. Sales and marketing
expenses increased $989,000 or 123% driven by a more than doubling in the size
of the sales force since this time last year. General and administrative
expenses increased $626,000 or 34% primarily due to an increase in management
personnel. Net loss for the quarter was ($755,000) or ($0.02)/share versus a
net loss of ($195,000) or $0.01/share in Q3 08.

During the third quarter, NeoGenomics received $4.8 million of proceeds from
the sale of 3.5 million shares of common stock to Abbott Laboratories and
received an additional $640,000 upon the exercise of certain warrants. As a
result of these equity transactions, all non-lease debt was paid off during
the quarter. At the end of the Quarter, the Company held $3.1 million of cash
and retained $3 million of availability on its working capital credit
facility.

During the third quarter, overall revenue growth was impacted by normal
seasonality in Florida-based accounts as well as by a restructuring of the
relationship with the company's largest account. As previously disclosed, we
recently began assisting our largest customer develop the capability to
perform bladder cancer FISH testing in-house while seeking to expand the scope
of other testing services and the number of locations for which we provide
services. As a result, bladder cancer FISH testing revenue from this customer
declined by approximately $650,000 and other testing services increased by
$240,000, which resulted in a net loss of $410,000 of revenue compared with
the same quarter last year. Excluding this account, the company's revenues
grew approximately 62% versus last year.

Douglas VanOort, Chairman and Chief Executive Officer, stated, "We are pleased
by the significant progress across the company as we position ourselves for
future growth. Although the results of the restructuring process with our
largest customer are thus far below our expectations, there is considerable
momentum in the other aspects of our business. Sales force productivity
continues to increase as we emphasize training and new account development,
and the pipeline of new business is strong. We are on track to close October
with a significant increase in revenue versus September."

Mr. VanOort continued, "I am also delighted to announce that I have accepted
the position of Chief Executive Officer of NeoGenomics and will no longer
serve in an interim capacity. NeoGenomics is an exciting company with a
strong management team. I am excited to continue to execute on the strategic
initiatives we have put in place as we expand the Company's presence in many
areas of cancer genetic testing across the country."

Robert Gasparini, President and Chief Scientific Officer, added, "We are off
to a rapid start in building our Melanoma FISH testing capability pursuant to
the agreement we entered into with Abbott Laboratories in July. We have
expanded our California laboratory location and are just completing the
build-out of a new full-service melanoma FISH laboratory. We are also well
into the process of validating this new melanoma FISH test and expect to
complete a comprehensive validation study on over 500 patient samples by the
end of the year. We are currently working with four validation partners, each
of which will also become our initial marketing partners. We expect to launch
the melanoma FISH test in the first quarter of 2010 with our validation
partners and then quickly follow this with a national roll-out.

Conference Call

The Company has scheduled a webcast and conference call to discuss their Q3
2009 results at 11:00 AM EDT today. Interested investors should dial (877)
407-9210 (domestic) and (201) 689-8049 (international) at least five minutes
prior to the call. A replay of the conference call will be available until
11:59 PM on November 13, 2009 and can be accessed by dialing (877) 660-6853
(domestic) and 1 (201) 612-7415 (international). The playback conference ID
Number is 336389 and the PIN Number is 286. The web-cast may be accessed
under the Investor Relations section of our website at
http://www.neogenomics.com or at
http://www.investorcalendar.com/IC/CEPage.asp?ID=151457. An archive of the
web-cast will be available until 11:59 PM EDT on October 29, 2010.

About NeoGenomics, Inc.

NeoGenomics, Inc. is a high-complexity CLIA-certified clinical laboratory that
specializes in cancer genetics diagnostic testing, the fastest growing segment
of the laboratory industry. The company's testing services include
cytogenetics, fluorescence in-situ hybridization (FISH), flow cytometry,
morphology studies, anatomic pathology and molecular genetic testing.
Headquartered in Fort Myers, FL, NeoGenomics has labs in Nashville, TN,
Irvine, CA and Fort Myers and services the needs of pathologists, oncologists,
urologists, and hospitals throughout the United States. For additional
information about NeoGenomics, visit http://www.neogenomics.com.

For more news and information on NeoGenomics, please visit
www.IRGnews.com/coi/NGNM where you can find a fact sheet on the company,
investor presentations, and more. Interested parties can also access
additional investor relations material, including an investment profile and an
equity research report, from Hawk Associates at http://www.hawkassociates.com
or from the American Microcap Institute at
http://www.americanmicrocapinstitute.com/ngnm/.

Forward Looking Statements

Except for historical information, all of the statements, expectations and
assumptions contained in the foregoing are forward-looking statements. These
forward looking statements involve a number of risks and uncertainties that
could cause actual future results to differ materially from those anticipated
in the forward looking statements, Actual results could differ materially from
such statements expressed or implied herein. Factors that might cause such a
difference include, among others, the company's ability to continue gaining
new customers, offer new types of tests, and otherwise implement its business
plan. As a result, this press release should be read in conjunction with the
company's periodic filings with the SEC.

NeoGenomics, Inc.

CONSOLIDATED BALANCE SHEETS AS OF
September 30, 2009 and December 31, 2008
(unaudited)

ASSETS September 30, December 31,
2009 2008
------------ -----------

Cash and cash equivalents $3,128,047 $468,171

Accounts Receivable (net of allowance
for doubtful accounts of $551,914 and
$358,642, respectively) 4,174,625 2,913,531

Other Current Assets 1,327,908 973,867
--------- -------

TOTAL CURRENT ASSETS 8,630,580 4,355,569

PROPERTY AND EQUIPMENT (net of accumulated
depreciation of $2,416,445 and
$1,602,594, respectively) 4,180,162 2,875,297

OTHER ASSETS 106,737 64,509
------- ------

TOTAL $12,917,479 $7,295,375
=========== ==========

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES $4,303,616 $4,390,994

LONG TERM LIABILITIES 1,566,344 1,403,271
--------- ---------

TOTAL LIABILITIES 5,869,960 5,794,265

STOCKHOLDERS' EQUITY 7,047,519 1,501,110
--------- ---------

TOTAL $12,917,479 $7,295,375
=========== ==========

NeoGenomics, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)

For the For the For the For the
Three-Months Three-Months Nine-Months Nine-Months
Ended Ended Ended Ended
September September September September
30, 2009 30, 2008 30, 2009 30, 2008
---------- --------- ---------- ---------

REVENUE $7,296,800 $5,050,796 $21,669,645 $14,094,959

COST OF REVENUE 3,672,289 2,535,318 10,146,766 6,577,549
--------- --------- ---------- ---------

GROSS PROFIT 3,624,511 2,515,478 11,522,879 7,517,410
--------- --------- ---------- ---------

OPERATING EXPENSES:
General and
administrative 2,457,978 1,831,829 7,011,577 5,357,936
Sales and marketing 1,792,955 803,779 4,849,470 2,348,348
Interest (income)
expense, net 128,883 74,995 375,900 199,336
------- ------ ------- -------
Total operating
expenses 4,379,816 2,710,603 12,236,947 7,905,620
--------- --------- ---------- ---------

NET INCOME (LOSS) $(755,305) $(195,125) $(714,068) $(388,210)
========= ========== ========== ==========

NET INCOME (LOSS)
PER SHARE
- Basic $(0.02) $(0.01) $(0.02) $(0.01)
====== ====== ====== ======
- Diluted $(0.02) $(0.01) $(0.02) $(0.01)
====== ====== ====== ======

WEIGHTED AVERAGE
NUMBER 36,000,083 31,440,327 33,782,925 31,414,065
OF SHARES ========== ========== ========== ==========
OUTSTANDING -
Basic
Diluted 36,000,083 31,440,327 33,782,925 31,414,065
========== ========== ========== ==========

NeoGenomics, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)

For the For the
Nine-Months Nine-Months
Ended Ended
September September
30, 2009 30, 2008
--------- ---------

NET CASH USED IN OPERATING ACTIVITIES $(1,045,900) $(181,654)

NET CASH USED IN INVESTING ACTIVITIES (432,182) (370,218)

NET CASH PROVIDED BY FINANCING ACTIVITIES 4,137,958 972,664
--------- -------

NET INCREASE IN CASH AND CASH
EQUIVALENTS 2,659,876 420,792

CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD 468,171 210,573

CASH AND CASH EQUIVALENTS, END OF PERIOD $3,128,047 $631,365
========== ========

SUPPLEMENTAL DISCLOSURE OF CASH
FLOW INFORMATION:

Interest paid $335,242 $171,606
======== ========

Income taxes paid $ - $ -
=== ===

SUPPLEMENTAL DISCLOSURE OF NON-CASH
INVESTING AND FINANCING ACTIVITIES:

Equipment leased under capital
lease $1,064,194 $538,761
========== ========

NeoGenomics, Inc.

Supplemental Information on Customer Requisitions Received and Tests
Performed

For the For the For the For the
Three- Three- Nine- Nine-
Months Months Months Months
Ended Ended Ended Ended
September September % Inc September September % Inc
30, 2009 30, 2008 (Dec) 30, 2009 30, 2008 (Dec)
-------- -------- ---- -------- -------- ----

Requisitions
Rec'd
(cases) 7,555 6,308 19.8% 23,065 17,558 31.4%
Number of
Tests
Performed 11,188 8,383 33.5% 32,961 23,049 43.0%
Avg. # of
Tests /
Requisition 1.48 1.33 11.3% 1.43 1.31 9.2%

Total
Testing
Revenue 7,296,800 $5,050,796 44.5% $21,669,645 $14,094,959 53.7%
Avg
Revenue /
Requisition $965.82 $800.70 20.6% $939.50 $802.77 17.0%
Avg Revenue
/ Test $652.20 $602.50 8.2% $657.43 $611.52 7.5%

SOURCE NeoGenomics, Inc.

Steven C. Jones, Director of Investor Relations of NeoGenomics, Inc.,
+1-239-325-2001, sjones@neogenomics.com; or Ms. Julie Marshall of Hawk
Associates, Inc., +1-305-451-1888, neogenomics@hawkassociates.com; or Investor
Relations, Rachel Colgate, +1-212-825-3210,
rcolgate@investorrelationsgroup.com, or Media Relations, Janet Vasquez,
+1-212-825-3210, jvasquez@investorrelationsgroup.com, both of The Investor
Relations Group