IVAX Diagnostics Announces Initial Closing of Investment and Prepares for Expansion and Acquisitions

IVAX Diagnostics IVD announced today that it has consummated the initial transactions contemplated by its previously announced stock purchase agreement with ERBA Diagnostics Mannheim GmbH. At the initial closing of the investment, IVAX Diagnostics received an aggregate purchase price of $5,000,000 in cash, or $0.75 per share, and issued to ERBA Diagnostics Mannheim 6,666,667 shares of IVAX Diagnostics' common stock and warrants to purchase an additional 20,000,000 shares of IVAX Diagnostics' common stock. The warrants have an exercise price per share equal to $0.75 and have a five-year term. The purchase price of $0.75 per share and the warrant exercise price of $0.75 per share constitute a premium of 14% above the average closing price of a share of IVAX Diagnostics' common stock on the NYSE Amex during the five trading days immediately prior to April 8, 2011, the date on which the stock purchase agreement was originally publicly announced. At the initial closing of the investment, ERBA Diagnostics Mannheim received shares of IVAX Diagnostics' common stock and warrants to purchase additional shares of IVAX Diagnostics' common stock which (i) were not registered under the Securities Act of 1933, as amended, and, accordingly, are deemed “restricted securities,” (ii) are not subject to a registration rights agreement and (iii) are subject to a two-year lock-up period. As previously announced, at future closings of the investment pursuant to the stock purchase agreement, IVAX Diagnostics has also agreed to issue to ERBA Diagnostics Mannheim an additional 6,666,667 shares of IVAX Diagnostics' common stock for an aggregate purchase price of $5,000,000, or $0.75 per share, on or prior to January 1, 2012, as well as an additional 6,666,666 shares of IVAX Diagnostics' common stock for an aggregate purchase price of $5,000,000, or $0.75 per share, on or prior to July 1, 2012.