AdvanSource receives notice on NYSE Amex's continued listing standards

AdvanSource Biomaterials Corporation (NYSE Amex: ASB), a leading developer, manufacturer and seller of advanced polymer technologies and materials for a broad range of medical devices, today announced it was notified by the staff of the NYSE Amex that a review of the Company's Form 10-Q for the period ended June 30, 2010 indicated that the Company is not in compliance with one of the NYSE Amex's continued listing standards as set forth in Part 10 of the NYSE Amex's Company Guide (the "Company Guide"). Specifically, the Exchange noted that the Company is not in compliance with Section 1003(a)(iii) of the Company Guide because it reported stockholders' equity of less than $6,000,000 and losses from continuing operations and net losses in its five most recent fiscal years. As of June 30, 2010, the Company reported stockholders' equity of $5,803,000.

In order to maintain its listing, the Company must submit a plan by September 16, 2010 addressing how it intends to regain compliance by February 17, 2012. Subject to the plan being accepted by the NYSE Amex, the Company would have until February 17, 2012 to implement the plan, during which time the Company would be subject to periodic review to determine whether it is making progress consistent with the plan. If the Company has made a reasonable demonstration of an ability to regain compliance with the continued listing standards within the specified timeframe, the plan will be accepted. The Company has verbally informed the NYSE Amex staff that it intends to submit a plan to resolve the listing deficiency and to regain compliance with the NYSE Amex continued listing requirements. The Company's common stock continues to trade on the NYSE Amex under the ticker symbol "ASB."

Michael Adams, AdvanSource's President and Chief Executive Officer, stated, "Over approximately the past two-years, the Company has been executing on a plan to divest itself of non-strategic assets and business units so as to enable it to focus on exploiting its core competency in the development, manufacture and sales of its advanced polymer technologies and biomaterial products. As we anticipated, the execution of this restructuring and growth plan adversely affected our stockholders' equity in the short-term. We believe the Company is more focused and stronger than ever before; and has been successful in promoting its advanced biomaterials technology, capabilities and products to the global medical device industry.

We believe the formal compliance plan, which should be submitted to the NYSE Amex on or before September 16, 2010, should demonstrate the successful execution of our business plan to-date, and the Company's ability and intent to execute on the additional strategies to regain and maintain compliance with the NYSE Amex's listing standards on or before February 17, 2012."