Return to News/Press Releases Page

	847 Main Street Buffalo, NY 14203 Phone: 716-855-1068 Fax: 716-855-1078
CONTACT: Kirk Kamsler Senior Vice President, Commercial Development E-mail: kkamsler@minrad.com 716-855-1068	FOR IMMEDIATE RELEASE April 17, 2006

MINRAD International, Inc. Announces First Quarter Results

Buffalo, NY (April 17, 2006) – MINRAD International, Inc. (BUF.AMEX) today announced its financial results for the quarter ended March 31, 2006. The Company generated revenue of $3,123,000 for the quarter compared to revenue of $2,429,000 in the same period in 2005. Revenue in both North America and the International markets each increased at a double digit rate.

1st Quarter

     For the quarter, the company experienced a net loss available for common shareholders of $(748,000), $(0.03) per common share. This compares with a loss of $(895,000), $(0.03) per share in the first quarter of 2005. On an operating basis, the loss for the quarter of ($490,000) represented a $349,000 increase over the $(141,000) in 2005. This increased operating loss reflects higher operating expense, $2,049,000, a $749,000, or 58% increase, compared to the prior period as the company implements strategic initiatives in sales and marketing and research and development that were only partially offset by the 29% volume increase and improved gross margins (49.9% versus 47.7% in the first quarter of 2005).

     Sales and marketing expense, $761,000, represented an increase of $452,000, or 146% compared to the first quarter of 2005. Kirk Kamsler, Senior Vice President of Commercial Development commented, “At this time a year ago, our field sales organization was only seven individuals to support worldwide operations. We are delighted that we have been able to triple that in a year’s time to a team of 21. It is our plan to continue to build our organization to support our existing products and in anticipation of acceptances from the 24 pending drug and device registrations.”

     Research & Development expense increased $89,000, 26% between periods to $427,000. Finance and Administration expense of $861,000 was $208,000 higher than the first quarter of 2005, a 32% increase. $118,000 of the total operating expense increase between periods reflects compliance with the new accounting regulations to expense options

Balance Sheet

     At March 31, 2006 the company had total current assets of $8.6 million with $0.2 million cash on hand. At the same time, MINRAD had current liabilities of approximately $6.6 million.

About the Company

     MINRAD International, Inc. is an interventional pain management company with real-time image guidance and anesthesia and analgesia product lines. The real-time image guidance products facilitate minimally invasive surgery especially for pain management and have broad applications in orthopedics, neurosurgery, and interventional radiology. These devices enable medical professionals to improve the accuracy of interventional procedures and reduce radiation exposure. MINRAD International also manufactures and markets generic inhalation anesthetics for use in connection with human and veterinary surgical procedures. The company is developing a drug/drug delivery system for conscious sedation, which, similar to nitrous oxide in dental surgery, provides a patient with pain relief without loss of consciousness.

* * * * * * * * * *

     This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terms such as "may," "intend," "might," "will," "should," "could," "would," "expect," "believe," "estimate," "anticipate," "predict," "project," "potential," or the negative of these terms, and similar expressions intended to identify forward-looking statement. Investors should not place undue reliance on the forward-looking statements contained in this news release. Each forward-looking statement speaks only as of the date on which it is made, and except as required by law, Minrad International undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. Forward-looking statements are based on assumptions and estimates and are subject to risks and uncertainties. Important factors that could cause actual results to differ materially from those identified in the forward-looking statements in this news release include changes in general economic and political conditions and currency exchange rates; market factors, including competitive pressures and changes in pricing policies; changes in interpretations of existing legislation or the adoption of new legislation; loss of major customers; the occurrence of litigation or claims; natural and manmade disasters, including acts of terrorism or war; and other factors described in the "Risk Factors" and "Cautionary Factors That May Affect Future Results" sections of Minrad International's Form 10-KSB, filed with the Securities and Exchange Commission on March 31, 2005.