UTEK Corporation Reports Financial Results for Quarter and Nine Months Ended September 30, 2006.

TAMPA, Fla. -- UTEK Corporation (AMEX:UTK) (LSE-AIM:UTK) today announced financial results for the three and nine months ended September 30, 2006.

Financial Highlights

* Eight technology transfers completed in Q3 2006 vs. Six technology transfers in Q3 2005

* Revenue

* Net income from operations of $4.0 million for Q3 2006 vs. $3.7 million for Q3 2005

* Net assets of $67.6 million at September 30, 2006 vs. $44.4 million at December 31, 2005

* Proceeds received on the sale of equity investments for the nine month period 2006 of $7.3 million vs. $1.7 million for the nine month period 2005

Quarter ended September 30, 2006 Operating Results

For the quarter ended September 30, 2006, revenue (income from operations) was $13.6 million as compared to $10.4 million for the quarter ended September 30, 2005. Net income from operations for the quarter ended September 30, 2006 was $4.0 million as compared to $3.7 million for the quarter ended September 30, 2005. Approximately 94% and 92% of our income from operations (revenue) was received in the form of unregistered shares of common stock for the quarters ended September 30, 2006 and 2005, respectively.

Net income (loss) (including net income from operations and realized and unrealized gains and losses on investments) was ($4.5) million or ($0.50) per weighted average diluted share outstanding for the quarter ended September 30, 2006, as compared to $5.7 million, or $0.74 per weighted average diluted share outstanding for the quarter ended September 30, 2005. The net loss for the quarter ended September 30, 2006 is primarily due to a significant decrease in the fair value of two companies in our portfolio.

Proceeds received on the sale of equity investments during the three months ended September 30, 2006 were $1.2 million, as compared to $1.0 million for the same quarter of the prior year. These sales resulted in net realized losses, net of income tax benefit, of $389,000 and $4.2 million for the three months ended September 30, 2006 and 2005, respectively.

Weighted average diluted shares outstanding were 8,906,918 and 7,685,283 for the quarters ended September 30, 2006 and 2005, respectively.

Nine Months ended September 30, 2006 Operating Results

For the nine months ended September 30, 2006, income from operations (revenue) was $48.5 million as compared to $15.5 million for the nine months ended September 30, 2005. Net income from operations for the nine months ended September 30, 2006 was $17.4 million as compared to $3.9 million for the nine months ended September 30, 2005. Approximately 94% and 86% of our income from operations (revenue) was received in the form of unregistered shares of common stock for the nine months ended September 30, 2006 and 2005, respectively.

Net income (including net income from operations and realized and unrealized gains and losses on investments) was $12.1 million or $1.37 per weighted average diluted share outstanding for the nine months ended September 30, 2006, as compared to a net increase of $2.0 million, or $0.28 per weighted average diluted share outstanding for the nine months ended September 30, 2005.

Proceeds received on the sale of equity investments during the nine months ended September 30, 2006 were $7.3 million, as compared to $1.7 million for the same nine months of the prior year. These sales resulted in net realized gains (losses), net of income tax expense (benefit), of $1.8 million and ($4.0) million for the nine months ended September 30, 2006 and 2005, respectively.

Weighted average diluted shares outstanding were 8,869,276 and 7,104,371 for the nine months ended September 30, 2006 and 2005, respectively.

Liquidity and Capital Resources

At September 30, 2006, UTEK had cash and cash equivalents of $5.1 million, U.S. Treasuries and certificates of deposit of $10.5 million, total assets of $80.3 million and net assets of $67.6 million. Net asset value per common share outstanding was $7.57 at September 30, 2006 as compared to $5.58 at December 31, 2005, an increase of 36%. The Company had no long-term debt outstanding at September 30, 2006.

Overview

UTEK achieved significant growth during the nine months ended September 30, 2006. Twenty-four (24) technology transfers were completed in the nine months ended September 30, 2006, with average revenues and costs per transaction of $1.8 million and $468,000, respectively, as compared to ten (10) technology transfer completed in the nine months ended September 30, 2005 with average revenues and costs per transaction of $1.2 million and $337,000, respectively. Because the consideration we received in such transactions consisted of unregistered securities of the companies acquiring the transferred technology, we recorded the revenue from such transactions based on the fair value of such securities.

Financial Position Information

The following tables contain comparative selected financial data as of September 30, 2006 and December 31, 2005:

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Conference Call at 10:00 a.m. EST on Friday, November 3, 2006

UTEK will hold a live conference call at 10:00 a.m. EST to discuss its third quarter 2006 results. All interested parties are invited to attend the conference call.

Conference call dial-in numbers:

* US & Canada: 888-968-4564

* UK: 0-800-032-3836

* Other international callers: 973-582-2841

* Please reference conference ID# 8056804

About UTEK Corporation

UTEK([R]) is a specialty finance company focused on technology transfer. UTEK's services enable companies to acquire innovative technologies from universities and research laboratories worldwide. UTEK facilitates the identification and acquisition of external technologies for clients in exchange for their equity securities. This unique process is called U2B([R]). In addition, UTEK offers companies the tools to search, analyze and manage university intellectual properties. UTEK is a business development company with operations in the United States, United Kingdom and Israel. For more information about UTEK, please visit its website at www.utekcorp.com.

Forward-Looking Statements

Certain matters discussed in this press release are "forward-looking statements." These forward-looking statements can generally be identified as such because the context of the statement will include words, such as UTEK "expects," "should," "believes," "anticipates" or words of similar import. Similarly, statements that describe UTEK's future plans, objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties, including the financial performance of UTEK and the valuation of UTEK's investment portfolio, which could cause actual results to differ materially from those currently anticipated. Although UTEK believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it cannot give any assurance that its expectations will be attained. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating any forward-looking statements. Certain factors could cause results and conditions to differ materially from those projected in these forward-looking statements, and some of these factors are discussed below. These factors are not exhaustive. New factors, risks and uncertainties may emerge from time to time that may affect the forward-looking statements made herein. These forward-looking statements are only made as of the date of this press release and UTEK does not undertake any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

UTEK's operating results could fluctuate significantly due to a number of factors. These factors include the small number of transactions that are completed each quarter, the value of individual transactions, the timing of the recognition and the magnitude of unrealized gains and losses, UTEK's dependence on the performance of companies in its portfolio, the possibility that advances in technology could render the technologies it has transferred obsolete, the loss of technology licenses by companies in its portfolio, the degree to which it encounters competition in its markets, the volatility of the stock market and the volatility of the valuations of the companies it has invested in as it relates to its realized and unrealized gains and losses, the concentration of investments in a small number of companies, as well as other general economic conditions. As a result of these and other factors, current results may not be indicative of UTEK's future performance. For more information on UTEK and for a more complete discussion of the risks pertaining to an investment in UTEK, please refer to UTEK's filings with the Securities and Exchange Commission.

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