Adeza Biomedical Corp (902482) SEC Filing 10-Q Quarterly report for the period ending Friday, June 30, 2006

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

ADEZA ANNOUNCES 2006 SECOND QUARTER FINANCIAL RESULTS

Achieves 16^th Consecutive Quarter of Profitability on Record Product Sales
Company Affirms 2006 Revenue Guidance

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

SUNNYVALE, Calif. (August 3, 2006)

— Adeza (NASDAQ: ADZA) today announced financial results for the second quarter ended June 30, 2006.

Adeza reported record product sales of $13.0 million for the second quarter of 2006, an increase of 23% from product sales of $10.6 million for the second quarter of 2005. This increase was due to higher sales volume of FullTerm™, The Fetal Fibronectin Test.

Net income for the second quarter of 2006 was $537,000, or diluted earnings per share of $0.03, which included charges of $931,000 for stock-based compensation expense. Net income for the second quarter of 2005 was $1.8 million, or diluted earnings per share of $0.10, which included no stock-based compensation expense related to SFAS 123R and a 5% tax rate.

Gross profit for the second quarter of 2006 was $11.1 million, or 85.4%, and included stock-based compensation expense of $48,000. This compares with gross profit of $9.2 million, or 86.6%, for the second quarter of 2005.

Sales and marketing expenses for the second quarter of 2006 were $7.4 million, including stock-based compensation expense of $457,000, compared with $4.8 million for the same quarter in 2005. This increase reflects expansion of the company’s direct sales force and marketing programs. General and administrative expenses for the second quarter of 2006 were $2.2 million, including stock-based compensation expense of $352,000, compared with $1.9 million in the comparable quarter of the prior year. Research and development expenses were $1.6 million for the second quarter of 2006, including stock-based compensation expense of $75,000, compared with $1.2 million in the same quarter of the prior year. This increase was mainly due to product development efforts, including costs related to Gestiva™, Adeza’s drug candidate for the prevention of preterm birth in women with a history of preterm delivery.

Product sales for the first half of 2006 totaled $23.8 million, an increase of 18% from $20.2 million for the first half of 2005. For the six months ended June 30, 2006 Adeza reported net income of $543,000, or diluted earnings per share of $0.03, which included $1.8 million for stock-based compensation expense due to the adoption of SFAS 123R. This compares with net income of $3.3 million, or diluted earnings per share of $0.18, for the six months ended June 30, 2005, which included no employee stock-based compensation expense related to SFAS 123R and a 5% tax rate.

As of June 30, 2006 Adeza had cash and cash equivalents of $93.4 million, an increase of $2.8 million from $90.5 million of cash and cash equivalents as of March 31, 2006 and an increase of $3.6 million since December 31, 2005. Stockholders’ equity was $100.2 million and working capital was $99.5 million as of June 30, 2006.