CombiMatrix Corporation Reports Results for 2012 Third Quarter

CombiMatrix Corporation Reports Results for 2012 Third Quarter

Core Prenatal Testing Grew 73% Year-Over-Year in Third Quarter

IRVINE, Calif., Nov. 7, 2012 (GLOBE NEWSWIRE) -- CombiMatrix Corporation
(Nasdaq:CBMX), a molecular diagnostics company performing DNA-based testing
services for cancer and developmental disorders, reported today that total
revenues for the third quarter and first nine months of 2012 increased to $1.3
million and $3.9 million, respectively, up 5 percent and 14 percent from the
third quarter and first nine months of 2011. Revenues from the Company's core
prenatal testing markets in the third quarter grew by 73 percent over the
corresponding period in 2011 and grew by more than 76 percent in the first
nine months of 2012 over the comparable prior year period. The Company
performed a total of 1,356 billable diagnostic tests for 110 customers in the
third quarter of 2012, compared to 1,157 tests for 101 customers in the third
quarter of 2011.

Revenues were bolstered in the third quarter of 2012 by a clinical trial
program with Affymetrix that generated $195,000 in clinical trial support
services revenue during the period. That impact was offset by the anticipated
decline in revenues from the oncology business, where the Company has
eliminated resources to focus primarily on prenatal and secondarily on
pediatric genetic testing markets.

In May, the Company announced that it would direct resources to build on its
advantageous position and success in the prenatal markets, while in oncology,
it would focus almost exclusively on laboratory partnerships and de-emphasize
direct oncology efforts. Prenatal testing revenues in the third quarter and
first nine months of 2012 were $450,000 and $1.2 million, respectively, as
compared to $260,000 and $709,000 in the comparable 2011 periods.

CombiMatrix President and Chief Executive Officer Judd Jessup said, "Our new
strategy and refocused commercial activities continued to have a positive
impact on success in the prenatal markets and sales force efficiency in the
third quarter. As microarray testing marches towards being the standard of
care for all prenatal genetic testing, we are executing on a strategy to take
advantage of our position as the only independent publicly traded lab to focus
on that technology.

"We expect the momentum that we have built in the past two quarters will
continue into the fourth quarter and new year," continued Jessup, "We are
actively seeking and signing up large customers in the prenatal segment and
believe that progress and testing volumes will begin to more than offset the
revenues we are foregoing in the de-emphasized oncology market."

Net loss from continuing operations during the third quarter of 2012 was $(1.3
million), or $(0.12) per basic and diluted share from continuing operations,
compared to $(2.0 million), or $(0.19) per basic and diluted share from
continuing operations in the third quarter of 2011.Net loss from continuing
operations during the first nine months of 2012 was $(5.7 million), or $(0.54)
per basic and diluted share from continuing operations, compared to $(5.9
million), or $(0.62) per basic and diluted share from continuing operations in
the first nine months of 2011.Reductions to the Company's net loss from
continuing operations for both periods presented were due primarily to the
impact of cost reduction efforts that were executed during the second quarter
of 2012.

Cash and cash equivalents totaled $1.7 million as of September 30, 2012 vs.
$6.4 million as of December 31, 2011.Cash used in operating activities were
$(1.4 million), $(4.6 million), $(2.0 million) and $(5.1 million) for the
three and nine months ended September 30, 2012 and 2011, respectively.On
September 28, 2012, the Company entered into agreements to issue securities in
a private placement transaction to certain accredited investors that will
result in proceeds to the Company totaling $2.5 million to be received in two
tranches, with the first tranche closing on October 1, 2012 for $1.05 million
in gross proceeds and the second tranche of $1.45 million expected to close
within five business days of the Company's pending November 29, 2012 special
stockholders meeting.

Conference Call

CombiMatrix will host a conference call at 8:00 a.m. Pacific Time (11:00 a.m.
Eastern) today to discuss the third quarter 2012 financial results.To attend
the presentation by phone, dial 1-888-417-8516 for domestic callers and
1-719-457-2083 for direct-dial or international callers. To listen to the call
via CombiMatrix's website, go to www.combimatrix.com in the Investor/Events
section (http://investor.combimatrix.com/events.cfm). A replay of the
presentation will be available following the presentation, either via the
CombiMatrix website Investor/Events section
(http://investor.combimatrix.com/events.cfm) or by dialing 1-877-870-5176 for
domestic callers or 1-858-384-5517 for direct-dial international callers. When
prompted, enter playback pin number 2492250.

About CombiMatrix Corporation

CombiMatrix Corporation, through its wholly owned subsidiary, CombiMatrix
Molecular Diagnostics, Inc. (CMDX), is a molecular diagnostics laboratory
which offers DNA-based testing services to the prenatal, pediatric and
oncology markets.The Company performs genetic testing utilizing Microarray,
FISH, PCR and G-Band Chromosome Analysis.CMDX offers prenatal and pediatric
testing services for the detection of abnormalities of genes at the DNA level
beyond what can be identified through traditional technologies.CMDX was also
the first commercial clinical laboratory in the United States to make
comprehensive DNA-based genomic analysis of solid tumors, including breast,
colon, lung, prostate and brain tumors, available to oncology patients and
medical professionals.Additional information about CMDX is available at
www.cmdiagnostics.com or by calling 1-800-710-0624.

Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995

This press release contains forward-looking statements within the meaning of
the "safe harbor" provisions of the Private Securities Litigation Reform Act
of 1995.These statements are based upon our current expectations, speak only
as of the date hereof and are subject to change.All statements, other than
statements of historical fact included in this press release, are
forward-looking statements.Forward-looking statements can often be identified
by words such as "anticipates," "expects," "intends," "plans," "goal,"
"predicts," "believes," "seeks," "estimates," "may," "will," "should,"
"would," "could," "potential," "continue," "ongoing," similar expressions, and
variations or negatives of these words and include, but are not limited to,
statements regarding projected results of operations and management's future
business, operational and strategic plans, test menu expansion, services and
reports development and attracting greater prenatal genetic screening
business.These forward-looking statements are not guarantees of future
results and are subject to risks, uncertainties and assumptions that could
cause our actual results to differ materially and adversely from those
expressed in any forward-looking statement.The risks and uncertainties
referred to above include, but are not limited to:our ability to successfully
expand the base of our customers and strategic partners, add to the menu of
our diagnostic tests in both of our primary markets, develop and introduce new
tests and related reports, optimize the reimbursements received for our
testing services, and increase operating margins by improving overall
productivity and expanding sales volumes; our ability to successfully
accelerate sales, allow access to samples earlier in the testing continuum,
steadily increase the size of our customer rosters in both developmental
medicine and oncology; our ability to attract and retain a qualified sales
force; rapid technological change in our markets; changes in demand for our
future products; legislative, regulatory and competitive developments; general
economic conditions; and various other factors.Further information on
potential factors that could affect our financial results is included in our
Annual Report on Form 10-K, Quarterly Reports of Form 10-Q, and in other
filings with the Securities and Exchange Commission.We undertake no
obligation to revise or update publicly any forward-looking statements for any
reason, except as required by law.


COMBIMATRIX CORPORATION
CONSOLIDATED SUMMARY FINANCIAL INFORMATION
(In thousands, except share and per share information)
(Unaudited)
                                                                
CONSOLIDATED STATEMENTS OF                                       
OPERATIONS:
                                                                
                              Three Months Ended       Nine Months Ended
                              September 30,            September 30,
                              2012         2011        2012        2011
                                                                
Revenues                                                         
Diagnostics services           $1,053     $1,212    $3,549    $3,334
Clinical trial support         195         --        195        --
services
Royalties                      47          25         126        75
Total revenues                 1,295       1,237      3,870      3,409
                                                                
Operating expenses:                                              
Cost ofservices               647         642        1,983      1,965
Research and development       311         345        1,103      1,005
Sales and marketing            470         733        2,022      1,961
General and administrative     1,131       1,481      4,274      4,176
Patent amortization and        67          71         209        202
royalties
Total operating expenses       2,626       3,272      9,591      9,309
Operating loss                 (1,331)     (2,035)    (5,721)    (5,900)
Other income (expense):                                          
Interest income                --         1          1          3
Interest expense               (7)         (5)        (19)       (14)
Total other expense            (7)         (4)        (18)       (11)
Net loss from continuing       (1,338)     (2,039)    (5,739)    (5,911)
operations
Income from discontinued       --         82         --        318
operations
Net loss                       $(1,338)   $(1,957)  $(5,739)  $(5,593)
                                                                
Basic and diluted net loss per
share from continuing          $(0.12)    $(0.19)   $(0.54)   $(0.62)
operations
Basic and diluted net income
per share from discontinued    --         0.01       --       0.03
operations
                                                                
Basic and diluted net loss per $(0.12)    $(0.18)   $(0.54)   $(0.59)
share
                                                                
Basic and diluted weighted
average common shares          10,704,121 10,704,121 10,704,121 9,608,439
outstanding



CONSOLIDATED BALANCE SHEET INFORMATION:
                                            
                               September 30, December 31,
                               2012          2011
                                            
Total cash and cash equivalents $1,709        $6,385
Total assets                    $4,103        $9,448
Total liabilities               $1,362        $1,298
Total shareholders' equity      $2,741        $8,150

CONTACT: R. Judd Jessup
         President & CEO, CombiMatrix Corporation
         Tel (949) 753-0624
        
         Investor Relations Contact:
         John Baldissera
         BPC Financial Marketing
         Tel (800) 368-1217

CombiMatrix Corporation