Mr. Gilles Gagnon reports

CEAPRO REPORTS RECORD FULL-YEAR 2014 FINANCIAL RESULTS

Ceapro Inc. has released its financial results for the 12 months ended Dec. 31, 2014, and is providing an overview of recent operational highlights and expected business milestones for 2015.

               FINANCIAL HIGHLIGHTS FULL YEAR 2014 VERSUS 2013

                                                        2014            2013

Sales                                         $    8,890,000  $    6,524,000
Income from operations                        $    2,000,000  $      447,000
Net profit                                    $    1,594,000  $      176,000
Cash from operations                          $    2,443,000  $      490,000

Gilles Gagnon, MSc, MBA, president and chief executive officer of Ceapro, stated: "We are very pleased to report that 2014 was a record-breaking year on many fronts for Ceapro. These best-ever financial results were achieved because of an all-time record demand for our flagship product, avenanthramides. Importantly, these impressive results were realized while transitioning to a new site and focusing our resources on selected product development which we believe will be integral to our growth and expansion plans in the coming years. We are thankful and proud of our dedicated employees who have successfully delivered on such increased demand in a timely manner."

Recent operational highlights:

• Signed a development and licensing agreement with the University of Alberta for the use of an enabling pressurized gas expanded technology (PGX) for the development and large-scale production of dry formulations;
• Received a prestigious BIOTECanada Gold Leaf Award as emerging company of the year in agriculture/industrial;
• Awarded a non-reimbursable research grant from Alberta Innovates Bio Solutions to develop a novel functional energy drink formulation utilizing Ceapro's proprietary high-purity dry form beta glucan as an active ingredient in collaboration with University of Alberta;
• Obtained encouraging results for increased yield of avenanthramides through the use of a malting technology licensed from Agriculture Canada;
• Moved offices and research and development laboratories to Ceapro's new facility in south Edmonton;
• Announced the Scientific Achievement & Innovation Award from BioAlberta honouring Ceapro's research scientist, Dr. Bernhard Seifried, PhD, a PGX technology co-inventor;
• Appointed world-renowned health and disease management expert William W. Li, MD, to the board of directors.

Highlights subsequent to year-end:

• Expanded the company's licence agreement with University of Alberta to include worldwide rights to develop and commercialize PGX technology in all industrial fields;
• Signed a financing agreement with Agriculture Financial Services Corp. for a commercial financing of up to $900,000;
• Completed a non-brokered private placement totalling $960,000;
• Signed a licence agreement with Arrgo for the continuity of a research project with flagship product avenanthramides.

Mr. Gagnon added: "We are very pleased with the advancements we have made over the last year and the momentum we have built preparing the company for its next stage of growth. We are more confident than ever that Ceapro has the key to new successes by offering: a derisked business model with a base business in the cosmetic sector, which provides a revenue stream; well-advanced near-term catalysts with dry beta glucan as a potential functional food/nutraceutical; and long-term catalysts with dry formulations of avenanthramides for the nutraceutical and/or pharmaceutical markets. Also, we view the development of our proprietary PGX platform technology for which we have recently obtained the worldwide rights for all industrial applications as a game changer for Ceapro.

"We have moved our offices and research laboratories to our new site in 2014. While the successful completion, implementation and commissioning of the production area remains our top priority for 2015, in parallel, we are committed to remain laser focused on executing our strategic imperatives for growth that should drive significant value to all of our shareholders."

Financial results for the 12-month period ended Dec. 31, 2014

Total revenue for the 12 months ending Dec. 31, 2014, was $8.89-million as compared with $6,524,000 for the 12-month period ending Dec. 31, 2013, an increase of 36 per cent, primarily as a result of higher sales volumes of avenanthramides and oat oil. Total revenues were also positively impacted by a stronger U.S. dollar relative to the Canadian dollar.

Net income was $1,594,000 for the 12 months ending Dec. 31, 2014, compared with a net income of $176,000 for the same period in 2013.

Research and development investments net of grants for the 12-month period ended Dec. 31, 2014, were $578,000 compared with $731,000 in 2013 period.

General and administration expenses were $1,984,000 for the 12 months ending Dec. 31, 2014, compared with $1,709,000 for the same period in 2013, primarily due to higher board and directors compensation from share-based payments, accounting and audit fees, rent, depreciation, and legal expenses.

Sales and marketing expenses for the 12 months ending Dec. 31, 2014, were only $14,000 compared with $85,000 in the 2013 period, as a result of a strategic change in sales and marketing strategy related to distribution partnering.

As of Dec. 31, 2014, the company had cash and cash equivalents totalling $272,845 as compared with $1,953,019 as of Dec. 31, 2013.

      CONSOLIDATED STATEMENTS OF NET INCOME AND COMPREHENSIVE INCOME

                                                         Year ended Dec. 31,
                                                          2014         2013

Revenue                                             $8,890,256   $6,524,062
Cost of goods sold                                   4,126,484    3,425,248
Gross margin                                         4,763,772    3,098,814
Research and product development                       578,361      731,174
General and administration                           1,984,025    1,709,053
Sales and marketing                                     13,700       84,897
Finance costs                                          187,969      126,663
Income from operations                               1,999,717      447,027
Other operating loss                                  (405,922)    (271,219)
Net income for the year                              1,593,795      175,808
Other comprehensive (loss)
Actuarial (loss) on employee future benefit
obligation                                                   -      (16,916)
Total comprehensive income for the year              1,593,795      158,892
Net income per common share
Basic                                                     0.03         0.00
Diluted                                                   0.03         0.00