The Company Reports Revenue Growth of 42% in Q4 and 29% for 2010

BEVERLY, MA and TORONTO, Ontario– April 21, 2011 - Hamilton Thorne Ltd. (TSX-V: HTL), a leading provider of advanced laser systems for the regenerative medicine, fertility and stem cell research markets, today reported operational and financial results for the fourth quarter and year-ended December 31, 2010.

“2010 was a pivotal year for the Company. We reported double digit growth for the last three quarters of the year, expanded into new and lucrative research markets with the introduction of new products, and strengthened our infrastructure and management team,” said Meg Spencer, Chief Executive Officer of Hamilton Thorne Ltd. “Our sales for the year were very strong in our traditional markets and, with the introduction of the new Staccato™ and Stiletto™ laser systems, we are well positioned to expand our presence in larger research markets such as cancer research and advanced cell biology, as well as capitalize on the ground-breaking clinical advances that were achieved in 2010 in the fields of stem cell research and regenerative medicine.”

2010 Highlights

  • In November, Hamilton Thorne installed its ground-breaking Stiletto™ laser system into leading beta site labs. Stiletto™ has broad application for research with a variety of cells, enabling the Company to enter new and exciting research markets, including developmental and advanced cell biology. This novel technology automates the manual and tedious process of separating and removing unwanted cells and reduces time spent from hours of work down to minutes, dramatically saving both time and money, and revolutionizing how researchers approach cell selection and therapeutic research applications.
  • The Company also launched the new Staccato™ laser at the 8th Annual Meeting of the International Society of Stem Cell Research (ISSCR) in June. The Staccato™ adds to the functionality of the XYClone® laser system, providing the ability of near-continuous application of the laser to the sample through rapid pulsing of the beam. The rapid-firing laser accelerates the preparation required during stem cell development and allows fast and precise excision of the inner cell mass from blastocyst stage embryos, eliminating the need for immunosurgery using animal-based products. This ability to automate the destruction of unwanted cells without damage to the desirable cells is a key function in advanced cell research, developmental biology and cancer research.
  • Hamilton Thorne announced a vendor partnership agreement with Leica Microsystems, a leading global designer and producer of innovative high-tech precision optics systems for the analysis of microstructures. The vendor partnership enables Hamilton Thorne to draw on Leica Microsystems’ specialized technical sales group and provides for both companies the opportunity to work collaboratively to develop sales strategy and exchange leads to increase market penetration.
  • In 2010, Hamilton Thorne’s products were referenced in over 80 new peer-reviewed scientific articles by customers at world-leading research labs and academic institutions. Hamilton Thorne’s traditional fertility products and advanced laser systems were published in several prestigious scientific journals such as Nature Protocols, Journal of Assisted Reproduction and Genetics, and BMC Evolutionary Biology.
  • The company expanded its management team with the addition of Michael Bruns as Chief Financial Officer and Lisa Rivero as Director of Corporate Communications.
  • Hamilton Thorne closed on a convertible subordinated debenture offering of $1.25 million to provide the Company with additional capital to accelerate the development of research and development, potential product line acquisitions and in-licensing, and for general working capital purposes.
  • The Company extended the maturity of its $5 million line of credit with Commerce Bank and Trust Company through October 1, 2012. The line of credit extension strengthens the Company’s balance sheet and working capital by continuing to categorize the debt as long-term, and provides additional time for the Company to execute its growth strategy and refinance the debt on advantageous terms.

Financial Results

All amounts are in US dollars, unless specified otherwise, and results expressed in accordance with Canadian Generally Accepted Accounting Principles (GAAP).

Full Year 2010

The Company’s total sales increased 29.3% to $6,200,000 for the year ended December 31, 2010, an increase of $1,405,000 from $4,795,000 during the previous year. This increase of $1,405,000 was attributable to increased demand for our existing products and improved budget availability for capital equipment purchases across all customer types and geographic regions.

Gross profit for the year increased 27.3% to $3,851,000 in 2010, compared to $3,025,000 in the previous year. The gross profit as a percentage of sales declined slightly to 62.1% from 63.1% for 2009 due primarily to increased material costs and aggressive pricing pressures.

Operating expenses were $5,353,000 for the year ended December 31, 2010 up from $4,334,000 during the previous year, an increase of $1,019,000 or 23.5%. This increase in expenses represents continued strategic investment in the growth of the Company. Research and development expenses increased 16.8% to $985,000 due to continued development of new products. Sales and marketing expenses increased 22.4% to $2,372,000 due to the expansion of our sales force, commission expense on higher sales volume, and increased variable costs of selling. General and administrative (G&A) expenses increased 28.6% to $1,995,000 due primarily to increases in public company expenses such as investor relations, professional fees and director fees. G&A also increased due to increased investments in staffing, and the favorable settlement of an employment labor claim.
Net interest expense decreased to $341,000 for 2010 from $367,000 for 2009. The decrease was due to the elimination of interest accreted on the preferred stock redeemed in the 2009 merger, offset by the initial interest expense, both coupon and accreted on the convertible debentures issued in August 2010.

The net loss for the year was $1,843,000, an increase of 10.0% over the net loss of $1,675,000 for the same period of the previous year. The increased loss was due primarily to the additional investments by the Company in research, product development, sales and marketing, plus additional general and administrative expenses, partially offset by increased gross profit resulting from increased sales.

Fourth Quarter 2010

The Company’s total sales increased 41.8% to $1,698,000 during the quarter ended December 31, 2010, which was up $501,000 from $1,197,000 during the previous quarter. This was a result of the Company continuing to grow its sales in all regional markets.

Gross profit increased 46.4% to $1,089,000, and gross profit as a percentage of sales improved to 64.1% from 62.1% over the previous year.

The net loss for the fourth quarter was $630,000, an increase of 9.0% over the net loss of $578,000 for the same period of the previous year. The increased loss was due primarily to the additional investments by the Company in research, product development, sales and marketing, as well as additional general and administrative expenses, partially offset by increased gross profit resulting from increased sales.

As of December 31, 2010, the Company had outstanding 24,415,157 common shares, 6,045,006 warrants, 4,272,022 options, and 440,001 agent compensation options outstanding.
The financial statements are available on www.sedar.com.
Other News
The Company has made changes to its executive management team and board with the departure of Michelle Lyles, VP of Sales, effective April 22, 2011, and the previously announced departure of Scott Pearson and the addition of Dr. David Sable to its Board of Directors.

About Hamilton Thorne Ltd. (www.hamiltonthorne.com)
Hamilton Thorne is a leading provider of advanced laser systems for the regenerative medicine, stem cell research and fertility markets. Hamilton Thorne's lead products, the ZILOS-tk™ and XYClone® laser systems, attach to standard inverted microscopes and operate as robotic micro-surgeons, significantly reducing time and increasing efficiency in key in-vitro fertilization, stem cell, and regenerative medical research applications. The new Staccato™ and Stiletto™ laser systems are designed to broaden the Company’s markets and offer significant advantages to developmental biology, cancer research and advanced cell biology researchers.

Hamilton Thorne’s growing customer base includes pharmaceutical companies, biotechnology companies, fertility clinics, university research centers, and other commercial and academic research establishments worldwide. Current customers include world-leading research labs such as Harvard University, MIT, Yale, McGill University, DuPont, Monsanto, Charles River Labs, Jackson Labs, Merck, Novartis, Pfizer, Oxford University, and Cambridge.

Neither the Toronto Venture Exchange, nor its regulation services provider (as that term is defined in the policies of the exchange), accepts responsibility for the adequacy or accuracy of this release.

Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements unless and until required by securities laws applicable to the Company. Additional information identifying risks and uncertainties is contained in filings by the Company with the Canadian securities regulators, which filings are available at www.sedar.com.

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