Martek Announces Fourth Quarter Revenues of $56.0 Million

14/12/05 Martek Biosciences Corporation has announced that for the fourth quarter of fiscal 2005, revenues of $56.0 million were achieved compared to $59.7 million for the fourth quarter of fiscal 2004 (4th Qtr 04). Revenues increased 18% to approximately $218 million for the full 2005 fiscal year. For the 4th Qtr 05, Martek generated income before income taxes of $7.7 million compared to income before income taxes of $10.1 million in the 4th Qtr 04. For fiscal 2005, Martek generated income before income taxes of $24.1 million compared to $21.9 million generated during fiscal 2004.

"Martek's fourth quarter revenue increase of more than 40% over the third quarter indicated that earlier customer inventory stockpiles appear to have been largely used up. Now that production is in place, the Company is ready for further sales growth in 2006. I continue to be encouraged by market interest for DHA in food," stated Henry "Pete" Linsert, Jr., Chief Executive Officer of Martek.

Total revenues for the year ended October 31, 2005 (FY 05) were $217.9 million, an increase of $33.4 million or 18% over $184.5 million for the year ended October 31, 2004 (FY 04), due mainly to higher sales of nutritional products to the Company's infant formula licensees. Gross profit margin on product sales increased to 41% for FY 05 from 39% for FY 04, mostly due to DHA productivity improvements. Research and development expenses increased by $1.9 million or 10% in FY 05 compared to FY 04 due to additional efforts in DHA, ARA and food DHA production improvements as well as DHA clinical studies.