Alpha Innotech Reports Strong First Quarter International Revenue Growth

SAN LEANDRO, Calif.--(Business Wire)--
Alpha Innotech Corp. (OTCBB:APNO), a leading provider of
bioanalytical systems for drug discovery and life science research,
today reported financial results for the quarter ending March 31,
2008.

First quarter revenues of $3.668 million increased 3.4% from the
$3.547 million reported in the same period in 2007.

The Company posted a net loss of $2,000 in the first quarter
ending March 31, 2008 as compared to a $1,000 net loss in the
comparable period of 2007.

Excluding stock-based compensation, interest, and depreciation on
a non-GAAP basis, the Company had net income of $338,000 for the first
quarter of 2008 compared to $280,000 for the first quarter of 2007.
The non-GAAP net income (loss) is reconciled to comparable GAAP net
income (loss) in the table entitled "Non-GAAP Calculation of Net
Income (Loss)".

"Our focus on the rapidly growing Pacific Rim markets contributed
to first quarter international revenues increasing nearly 33% from a
year ago," said Ron Bissinger, Chief Executive Officer of Alpha
Innotech. "We're also looking forward to introducing additional
products in our second quarter that will continue our growth
momentum."

Additional First Quarter 2008 Achievements

-- Posted seventh consecutive quarter with positive cash flows
from operating activities

-- Began shipping red(TM), our personal gel imager combining touch
screen controls with advanced imaging technology and an integrated
onboard computer, all in a uniquely compact footprint

-- Added sales personnel in Shanghai and Singapore to strengthen
the Company's presence in the rapidly growing Pacific Rim region

More information on Alpha Innotech can be found at the Company's
website www.alphainnotech.com.

About Alpha Innotech Corp.

Founded in 1992 and with over 10,000 systems sold worldwide, Alpha
Innotech is a leading developer, manufacturer and marketer of digital
imaging and analysis systems for the life science research and drug
discovery markets. Our goal is to combine instruments, reagents and
bioinformatics software to offer integrated modular technology
platforms for functional genomics, proteomics and cell analysis
markets. Our customers include pharmaceutical and biotechnology
companies as well as universities, medical centers, government
research institutes and agencies worldwide.

Use of Non-GAAP Financial Measures

To supplement the Company's financial statements presented in
accordance with GAAP, the Company is also providing non-GAAP financial
information. The presentation of non-GAAP financial information should
be considered in addition to the Company's GAAP results and is not
intended to be considered in isolation or as a substitute for
financial information prepared and presented in accordance with GAAP.
The Company believes that both management and investors benefit from
referring to non-GAAP financial information that excludes certain
expenses in their assessment of the Company's performance. The Company
also believes that investors benefit from increased transparency into
supplemental information used by management in its financial and
operational decision making.

Cautionary Note Regarding Forward-Looking Statements

This news release contains forward-looking information within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934 and is subject to the safe
harbor created by those sections. These forward-looking statements
involve a number of risks and uncertainties that include, but are not
limited to, the Company's ability to obtain additional financing if
needed, the timing of the introduction and success of new products,
and the Company's growth prospects, that could cause actual results to
differ materially from those anticipated or planned by these
forward-looking statements. Please also refer to the risk factors
described in our filings with the Securities and Exchange Commission,
including our recent Form 10-KSB and Forms 10-QSB filed with the
Securities and Exchange Commission. We do not intend to update the
forward-looking information contained in this news release except as
required by law.

-0-
*T
Alpha Innotech Corp.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)

Three Months Ended
March 31,
-------------------------
2008 2007
-------------------------

Revenue 3,668 3,547
Cost of goods sold 1,557 1,575
------------ ------------

Gross profit 2,111 1,972
------------ ------------

Operating expenses:
Sales and marketing 1,185 1,055
Research and development 375 304
General and administrative 567 532
------------ ------------

Total operating expenses 2,127 1,891
------------ ------------

Profit (loss) from operations (16) 81

Interest expense (83) (82)
Other income (expense), net 97 0
------------ ------------

Net profit (loss) applicable to common
stockholders (2) (1)
============ ============

Profit (loss) per common share - basic and
diluted $ (0.00) $ (0.00)
============ ============

Weighted average shares outstanding - basic
and diluted 10,536,390 10,343,383
============ ============
*T

-0-
*T
Alpha Innotech Corp.
Condensed Consolidated Balance Sheets
(in thousands)

December 31,
March 31, 2008 2007
---------------- ------------
(Unaudited)
Assets
--------------------------------------
Current assets:
Cash and cash equivalents 214 168
Restricted cash 50 50
Accounts receivable, net 2,071 2,230
Inventory, net 1,248 1,006
Prepaid expenses and other
current assets 144 219

---------------- ------------

Total current assets 3,727 3,673

Property and equipment, net 854 914

Other assets 90 90
---------------- ------------

Total assets 4,671 4,677
================ ============

Liabilities and Stockholders' Deficit
---------------------------------------

Current liabilities:
Accounts payable 1,768 1,786
Accrued liabilities 1,278 1,330
Current portion of debt 1,128 1,407
Deferred revenue 1,013 1,027
Other liabilities 287 265
---------------- ------------

Total current liabilities 5,474 5,815

Debt, net of current portion 313 308
---------------- ------------

Total stockholders' deficit (1,116) (1,446)
---------------- ------------

Total liabilities and stockholders'
deficit 4,671 4,677
================ ============
*T

-0-
*T
Alpha Innotech Corp.
Non-GAAP Calculation of Net Income (Loss)
(Unaudited)
(in thousands)

Three Months
Ended March
31,
2008 2007
------ ------

Non-GAAP calculation of net income (loss) :

GAAP net loss (2) (1)
Interest 83 82
Depreciation 137 144
Stock-based compensation 120 55

------ ------

Non- GAAP basis income (loss) $ 338 $ 280
====== ======
*T

Alpha Innotech Corp.
Ron Bissinger, CEO, 510-483-9620

Copyright Business Wire 2008