Critical Outcome Technologies Reports Year-End Financial and Operating Results

LONDON, ON--(Marketwired - August 28, 2015) - Critical Outcome Technologies Inc. ("COTI" or the "Company") (TSX VENTURE: COT) (OTCQB: COTQF) reported its financial and operating results today for the fourth quarter and the year ended April 30, 2015 ("FYE 2015").

Major milestones met during FYE 2015 and year-to-date included:

• Establishing a high profile experienced Scientific Advisory Board led by Dr. Gordon Mills for the clinical development of COTI-2 and other cancer pipeline assets;
• Receiving investigational new drug ("IND") status from the U.S. Food and Drug Administration ("FDA") for COTI-2, the Company's small molecule activator of misfolded mutant p53 protein, in gynecological cancers shortly after the year end;
• Strengthening the intellectual property position of COTI-2, with the receipt of additional patents in Europe, Canada, the United States, and Japan;
• Signing a letter of intent with University of Texas MD Anderson Cancer Center for the Phase 1 development of COTI-2; and,
• Receiving Orphan Drug Designation for COTI-2 from the FDA for the treatment of ovarian cancer.

"Key events in fiscal 2015 provided additional validation for COTI-2 and the Company is well prepared and eager to launch our first clinical trial this fall," said Dr. Wayne Danter, COTI's President and Chief Executive Officer. "Preclinical studies repeatedly demonstrated potent therapeutic potential with very low toxicity. In addition to receiving the Orphan Drug Designation for the treatment of ovarian cancer, COTI-2 received additional patent protection in North America and abroad. We look forward to continuing our work with MD Anderson Cancer Center and the ovarian cancer patient community as we begin our COTI-2 clinical trials and hope to bring about a transformative treatment option for patients."

Financial Results

Fourth Quarter

The Company reported a quarterly net loss of $946,683, or $0.01 per share, compared to a net loss of $1,226,521, or $0.01 per share, for the fourth quarter of the previous year. The $279,838 decrease in net loss was attributable to a $173,766 decrease in research and development ("R&D") expenditures and a $163,339 decrease in general and administrative ("G&A") expenditures, partially offset by higher sales and marketing expenses, a decrease in investment tax credits, and a $148,368 increase in financing expenses.