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	50 Cobham Dr. Orchard Park, NY 14127 Phone: 716-855-1068 Fax: 716-855-1078

MINRAD International, Inc. Announces Q3 2006 Financial Results

    Orchard Park, NY (October 30, 2006) MINRAD International, Inc. today announced its financial results for the quarter ended September 30, 2006. The Company generated revenue of $5,278,000 for the quarter and $10,449,000 for the nine month period ending September 30, 2006. This compared to revenue of $1,423,000 in the same quarter of 2005 and $5,879,000 for the nine month period ending September 30, 2005.

Sales in Q3 2006 increased to $5,278,000 an increase of 271% over the third quarter of 2005. The primary increase in sales was due the increase of sales in the United States to our U.S. distributor. Sales to our U.S. anesthesia and analgesia distributor in Q3 2006 were $4,025,000.

For the third quarter of 2006, the Company experienced a loss available to common of $(1,687,000), or $(0.04) per common share. This compares with a loss available to common of $(1,731,000), or $(0.06) per common share for the third quarter in 2005. For the nine month period ending September 30, 2006 the Company experienced a loss of $(4,261,000), or $(0.12) per common share. The loss available to common for the same period in 2005 was $(10,938,000), or $(0.39) per common share. In the second quarter of 2005 there were non cash dividends of $6,599,000 related to the preferred stock offering in that time period.

The operating loss for the third quarter of 2006 of $(1,829,000) compares to a loss of $(1,119,000) for the same period in 2005. For the nine month period ending September 30, 2006 the operating loss increased to $(4,019,000) from $(1,985,000) for the same period in 2005. The increased operating loss for the quarter and for the nine month period are a result primarily of increases in headcount related costs due to increases in our sales force and research and development staffs and changes in our finance and administration staff. In addition there is approximately $400,000 in option expense recognized in the third quarter of 2006 which is not included in 2005.

Contact: Timothy Sheehan, VP - Corporate Development

    tsheehan@minrad.com
    (716) 855-1068
    www.minrad.com

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. Additional information can be found at the company's website, www.minrad.com.

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     The information contained in this news release, other than historical information, consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. Factors that may cause actual results to differ materially from those expressed or implied by its forward-looking statements include, but are not limited to, Minrad International's limited operating history and business development associated with being a growth stage company; its dependence on key personnel; its need to attract and retain technical and managerial personnel; its ability to execute its business strategy; the intense competition it faces; its ability to protect its intellectual property and proprietary technologies; its exposure to product liability claims resulting from the use of its products; general economic and capital market conditions; financial conditions of its customers and their perception of its financial condition relative to that of its competitors; as well as those risks described under the heading "Risk Factors" of Minrad International's Form 10-KSB, filed with the Securities and Exchange Commission on March 29, 2006. Although Minrad International, Inc. believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. 

                 MINRAD INTERNATIONAL, INC. AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF OPERATIONS
   3RD QUARTER ENDED SEPTEMBER 30, 2006 (UNAUDITED) COMPARED TO 3RD QUARTER ENDED
                          SEPTEMBER 30, 2005 (UNAUDITED)
                                 IN THOUSANDS

                                                Three-Month Periods
                                                     Ended
                                             September 30,    September 30,   
                                               2006             2005     

 
     Revenue                                 $5,278             $1,423
 
    Cost of goods sold                        3,214                898          

    Gross profit                              2,064                525        
  
    Operating expenses:
     Sales and marketing                      1,613                425     
     Research and
      development                               836                536   
     Finance and
      administrative                          1,444                683     
       Total operating
        expenses                              3,893              1,644      
       

    Operating loss                           (1,829)            (1,119)     
 
    Interest expense:
     Stockholders and
      affiliates                                  -               (436)      
     Bank and other                               -                 (4)     
    Interest Income                             304                  -     
       Total non-operating
        income (expenses)                       304               (440)   
 
    Net Loss                                 (1,525)            (1,559)   
    Less Preferred Stock
     Dividends
    Cash dividends                             (162)              (172)   
    Non cash dividends                            -                  -   
    Net loss available
     for common
     stockholders                           $(1,687)          $ (1,731)   
    Net Loss per share
     basic and diluted                       $(0.04)            $(0.06)   
    Weighted average
     common shares
     outstanding basic
     and diluted                             41,563              28,467   

                 MINRAD INTERNATIONAL, INC. AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF OPERATIONS
NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2006 (UNAUDITED) COMPARED TO NINE-MONTH PERIOD
                          SEPTEMBER 30, 2005 (UNAUDITED)
                                 IN THOUSANDS
         

                                              Nine-Month Periods Ended
                                            September 30,    September 30, 
                                              2006                2005  
      Revenue                                $10,449           $5,879     
 Cost of goods sold                            6,121            3,380   
 Gross profit                                  4,328            2,499

 Operating expenses:
     Sales and marketing                       3,183            1,121
     Research and development                  1,856            1,304
     Finance and
      administrative                           3,308            2,059
       Total operating    
        expenses                               8,347            4,484
    Operating loss                            (4,019)          (1,985)
    Interest expense:
     Stockholders and
      affiliates                                    -          (1,961)
     Bank and other                             (153)            (194)  
    Interest Income                              418                -    
       Total non-operating
        income(expenses)                         265           (2,155) 

    Net Loss                                  (3,754)          (4,140)    
    Less Preferred
    Stock Dividends
    Cash dividends                              (324)            (199) 
    Non cash dividends                          (183)          (6,599) 
    Net loss available
     for common
     stockholders                            $(4,261)        $(10,938)    
    Net Loss per share
     basic and diluted                        $(0.12)          $(0.39) 
    Weighted average
     common shares
     outstanding basic
     and diluted                              34,810           28,358 
 

                 MINRAD INTERNATIONAL, INC. AND SUBSIDIARIES
                   CONSOLIDATED BALANCE SHEETS (UNAUDITED)
                                 IN THOUSANDS
 
                                                   September 30,   December 31,
                                                       2006            2005
   ASSETS
    Current assets:
     Cash and cash equivalents                       $ 9,937          $ 670
     Investments                                      10,778            -
     Accounts receivable                               6,521          3,459
     Interest Receivable                                  88            -
     Inventories, net                                  6,898          3,860
     Prepaid expenses and other current assets         1,588            962
      Total current assets                            35,810          8,951
 
    Net property and equipment                         4,130          1,069
 
    Other assets                                         281            163
    Total assets                                     $40,221        $10,183
 
    LIABILITIES AND STOCKHOLDERS' EQUITY
 
    Current liabilities:
     Bank demand note payable                            $ -         $2,720
     Accounts payable                                  1,564          2,542
     Dividends payable                                   170            170
     Accrued expenses                                  2,276            405
      Total current liabilities                        4,010          5,837
 
    Stockholders' equity                              36,211          4,346
    Total liabilities and
     stockholders' equity                           $ 40,221        $10,183
 

                        MINRAD INTERNATIONAL, INC. AND SUBSIDIARIES
                     CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
                                 IN THOUSANDS
 
 
                                                   Nine Months        Nine Months
                                                      Ended            Ended
    Cash flows from operating                      September 30,        September 30
     activities:                                     2006                2005
     Net cash used by operating activities         $  (9,632)            (8,752)
     Net cash used by investing activities           (13,353)              (272)
     Net cash provided by financing activities        32,252             10,482
 
    Net increase in cash and cash equivalents          9,267              1,458
    Cash-and cash equivalents -
     Beginning of period                                 670                  3
    Cash and cash equivalents -
     End of period                                  $  9,937             $1,461
 

Source: MINRAD International, Inc.