Ceapro Reports Third Quarter 2011 Financial Results

EDMONTON, ALBERTA -- (MARKET WIRE) -- 11/29/11 -- Ceapro Inc. (TSX VENTURE: CZO) ("Ceapro" or the Company") today announced its financial results for the three-month and nine-month periods ended September 30, 2011. These results are presented in accordance with the International Financial Reporting Standards (IFRS) of the International Accounting Standards Board (IASB).

Third quarter 2011 corporate highlights

--  Launch of a new website reflecting Ceapro's innovation and focus on the
    personal care industry.

--  Signing of a technical sales and distribution agreement with California
    based Ross Organic Specialty Sales to represent Ceapro's all natural
    line of products in the Western United States.

--  Advancement in planning for the expansion of Ceapro's manufacturing

Subsequent to quarter-end

--  Appointment of Grant Thornton LLP as Ceapro's auditors as the partners
    and employees Stout & Company LLP have joined Grant Thornton.


Revenues were $1,515,000 for the three-month period ended September 30, 2011, as compared to $1,708,000 for the same period in 2010. For the first nine months, revenues were $4,234,000 in 2011 compared to $3,881,000 for the same period in 2010. This increase of sales of 9% in 2011 is attributed to higher sales volumes of avenanthramides, beta glucan and oat oil.

Research and development Investments were $$339,000 and $755,000 for the three-month period and nine-month period ended September 30, 2011 as compared to $236,000 and $513,000 for the same periods in 2010. These respective increases of 44% ($103,000) and 47% ($242,000) reflect our strong commitment to expand our pipeline and position Ceapro as a highly recognized innovative Company.

Net income/loss. For the third quarter of 2011, net loss was $108,000 versus a net profit of $98,000 for the same period in 2010. This loss is equal to the increase in R&D during the period. For the first nine-months of 2011, Net income amounted to $323,000 compared to $290,000 for the same period in 2010 which included the recovery of a one time cost of $315,000.

"While we are building a solid scientific portfolio for Ceapro and expanding our partnership network, we are very pleased with our year to date 2011 results showing profitability and continuous improvement in our balance sheet" said Gilles Gagnon, Acting CEO. As previously announced, the third quarter of 2011 clearly demonstrates that Ceapro's commitment to growth is rooted in strong innovation and robust science as evidenced by the significant increase of investments in our Research and Development program" he added.

The complete financial statements are available for review on SEDAR at http://sedar.com/Ceapro and on the Company's website at www.ceapro.com .

About Ceapro Inc.

Ceapro Inc. is a Canadian growth-stage biotechnology company. Primary business activities relate to the development and commercialization of active ingredients for personal care and cosmetic industries using proprietary technology and natural, renewable resources. To learn more about Ceapro, visit www.ceapro.com.

Consolidated Statements of Net Income (Loss) and Comprehensive Income
                         Quarters Ended September       Nine Months Ended
                                              30,           September 30,
                                 2011        2010        2011        2010
                                    $           $           $           $

Revenue (note 19)           1,515,096   1,708,071   4,234,179   3,881,414
Cost of goods sold            886,681     962,001   1,903,748   2,207,896
Gross margin                  628,415     746,070   2,330,431   1,673,518

Research and product
 development                  339,244     235,846     754,918     513,244
General and
 administration               323,911     335,654     993,167     960,748
Sales and marketing            21,116      10,759      85,226      49,875
Other operating loss
 (note 14)                      7,878      14,477      31,975       4,124
Write off of property and
 equipment                                      -           -      10,490
Income (loss) from
 operations                  (63,734)     149,334     465,145     135,037

Finance costs (note 15)      (44,088)    (51,042)   (142,492)   (159,579)

SGGF legal fees (note
 17b)                               -           -           -     314,983

Income (loss) before tax    (107,822)      98,292     322,653     290,441

Income taxes
 Current                        5,000      28,000     197,000      87,000
 Reduction as a result of
  applying non-capital
  losses carried forward
  against the current
  period's taxable income     (5,000)    (28,000)   (197,000)    (87,000)

Net income (loss) and
 comprehensive income
 (loss) for the period      (107,822)      98,292     322,653     290,441

Net income (loss) per
 common share:
  Basic                        (0.00)        0.00        0.01        0.01
  Diluted                      (0.00)        0.00        0.01        0.01

Weighted average number
 of common shares
 outstanding               56,578,948  54,421,094  56,555,638  52,623,671

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Ceapro Inc.
Branko Jankovic
Vice President and CFO

Source: Ceapro Inc.