Adeza Biomedical Corp (902482) SEC Filing 10-Q Quarterly report for the period ending Friday, September 30, 2005

EXHIBIT 99.1

COMPANY CONTACT:		INVESTOR CONTACTS:
Mark Fischer-Colbrie		Jody Cain (jcain@lhai.com)
Chief Financial Officer		Bruce Voss (bvoss@lhai.com)
Adeza Biomedical Corporation		Lippert/Heilshorn & Associates, Inc.
(408) 745-0975 ext 520		(310) 691-7100
ir@adeza.com

For Immediate Release

ADEZA ANNOUNCES THIRD QUARTER 2005 FINANCIAL RESULTS

Reports 13^th Consecutive Quarter of Profitability on Record Product Sales

Conference Call Begins at 4:30 p.m. Eastern Time Today

SUNNYVALE, Calif. (November 2, 2005)

- Adeza (NASDAQ: ADZA) today announced financial results for the three and nine months ended September 30, 2005.

Adeza reported record quarterly product sales of $11.4 million for the third quarter of 2005, an increase of 30% from product sales of $8.8 million for the third quarter of 2004. This increase is primarily attributable to higher sales volume of FullTerm^®, The Fetal Fibronectin Test.

Net income for the third quarter of 2005 was $2.2 million, marking the company’s 13^th consecutive profitable quarter. This compares with net income of $5.2 million for the third quarter of 2004, which included a one-time decrease in royalty expenses of $3.7 million. Diluted earnings per share for the third quarter of 2005 was $0.12 based on 17.9 million shares outstanding, up from the $0.10 reported in the second quarter of 2005, and compared with diluted earnings per share of $0.39 based on 13.5 million shares outstanding for the third quarter of 2004, which included the one-time decrease in royalty expense. The change in share count is primarily the result of the completion of the company’s initial public offering of 4.3 million common shares in December 2004.

For the three months ended September 30, 2005, selling and marketing expenses were $4.6 million, up from $4.2 million for the comparable period in 2004, due mainly to expansion of the direct sales force and marketing programs. General and administrative expenses for the quarter increased to $2.0 million from $1.1 million in the prior-year third quarter, due primarily to costs associated with operating as a public company. Research and development expenses were $1.6 million for the third quarter of 2005, compared with $0.6 million last year, due primarily to costs related to expanded product development efforts and clinical studies.