Polydex Pharmaceuticals reports decrease in sales for second quarter 2011

Polydex Pharmaceuticals Limited (Pink Sheets:POLXF) (the "Company") reports financial results for the second quarter of fiscal 2011, the three-month period ending July 31, 2010. All figures are reported in U.S. dollars.

Cost control initiatives implemented by Management have contributed to the reduction in net losses, despite a decrease in sales in the second quarter of fiscal 2011 as compared to the same period last year. The decrease in sales is primarily due to a reduction in orders received from a few larger customers that had experienced a slow-down in operations but remain solid customers with continued orders going forward over the next few quarters. Sales for the six-month period ending July 31, 2010 actually increased slightly from $2,262,960 (for the period ending July 31, 2009) to $2,279,728 due to increased sales in Canadian dollars in that period.

As management has continued to aggressively explore opportunities for new market penetration and increase sales of the core dextran product line, several new customers and potential customers are emerging from new sources in Europe and the United States.