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Diatect Q2'08 Revenue Increased by 51%

HEBER CITY, Utah-(Business Wire)-August 15, 2008 - Diatect International Corporation (OTCBB:DTCT), a provider of eco-friendly insect control products, announced financial results for the second quarter and the six months ended June 30, 2008.

For the second quarter of 2008, Diatect reported revenue of $633,934, an increase of 51.6% from $418,203 in the comparable quarter a year ago. The increase was due to a rise in agricultural product and internet-based sales. Gross margin for the quarter was 79.6%, which compares to a 70.7% margin for the same quarter last year. Net loss for the quarter was $704,622, compared to a net loss of $383,031 for the same quarter last year. Marketing and sales expenses were $482,436, up from $256,233 reported in the comparable period. The increase in marketing and sales expenses reflects the company's strategic focus on expanding its sources of revenue.

For the six months ended June 30, 2008, Diatect reported $1,006,898 in sales, an increase of 17% from sales of $860,341 in the first six months of 2007. Gross profit margin for the first six months of 2008 was 75.8%, up slightly from the 72.3% reported in the same period last year. Net loss was $1,454,901, which compares to a loss of $738,206 for the six months ended June 30, 2007.

Diatect CEO Patrick Carr said, "During the past six months Diatect has made great strides in improving operations and increasing sales by expanding its marketing activities, but there is still a considerable amount of work to be done. During the second half of the year, Diatect will focus on designing and deploying new marketing initiatives in its three divisions of internet, agricultural and retail.

Although most of our plans are sales-oriented, we are also rededicating ourselves to efficiency and cost reduction on a company-wide basis. We are redesigning our internet marketing program to refine its focus and drive profitability. The internet market has been a traditionally strong segment for Diatect but there is definitely an opportunity for further growth.

In our agricultural division, the goal is to increase market penetration and to focus on attractive niches. Perhaps more dramatically, we will be initiating a major retail marketing effort to make Diatect products widely available. We feel that there is considerable opportunity for the retail division to achieve impressive gains as consumer trends favoring green and organic products are emerging, and our products have been under represented in this segment"

Access the complete filings at http://www.sec.gov.

About Diatect International

Diatect is an emerging global provider of eco-friendly insecticides for agricultural, commercial and at-home use. Diatect products represent the green generation of pest control, maximizing efficacy and ecological sensitivity. Products are EPA-registered, proprietary and distributed by wholesale distributors, retailers and sold in the Internet. For more information, visit http://www.diatect.com.

An investment profile is available at http://www.hawkassociates.com/profile/dtct.cfm.

Contact Diatect Shareholder Services at 435-654-4370, e-mail: shareholderservices@diatect.com, or Antonella Montagna or Julie Marshall, Hawk Associates, 305-451-1888, e-mail: diatect@hawkassociates.com. To receive e-mail notice of future releases sign up at http://www.hawkassociates.com/about/alert.

Safe-Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the company, its directors or its officers with respect to, among other things: (i) the company's financing plans; (ii) trends affecting the company's financial condition or results of operations; (iii) the company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors including the risk disclosed in the company's Forms 10-K and 10-Q filed with the SEC.

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