ABAXIS reports fiscal first-quarter financial results.

SUNNYVALE, Calif.--(HealthWire)--July 27, 1995--ABAXIS Inc. (NASDAQ/NM:ABAX), a medical-products company, Thursday reported operating results for its first fiscal quarter ended June 30, 1995.

For the three-month period, the company reported a net loss of $1,455,000, or 17 cents per share, compared with a net loss of $2,805,000, or 45 cents per share, for the comparable period in the prior year. Total revenues were $602,000 for the quarter, as compared with development revenues of $20,000 for the same period last year.

Commenting on the quarter, Gary Stroy, president and chief executive officer of ABAXIS, cited several accomplishments that have brought the company closer to launching its Piccolo Portable Blood Analyzer for the human-health-care market.

``We are very pleased to have signed a letter of intent with Baxter Healthcare Corp. by which they will become a distributor of our Piccolo System in the United States,'' Stroy commented. ``We have sought to establish additional distribution agreements in certain international markets and anticipate consummating several such agreements during the fiscal second quarter.

``We continued to expand sales of our VetScan system during the quarter, and expect to continue to make progress penetrating the veterinary market,'' added Stroy. ``We believe our product has great potential in the veterinary market based on the positive responses we have been receiving from our customers.''

Founded in 1989, ABAXIS develops, manufactures and markets portable blood-analysis systems for use in any patient-care setting to provide clinicians with rapid blood-constituent measurements. The system consists of a compact, 6.9-kilogram, portable analyzer and a series of 8cm-diameter single-use plastic disks, called reagent rotors, that contain all the reagents necessary to perform a fixed menu of tests.

The system can be operated with minimal training and perform multiple routine tests on whole blood using either venous or fingerstick samples. The system provides test results in less than 14 minutes with the precision and accuracy equivalent to a clinical laboratory. -0-

                              ABAXIS INC.
                    (A development-stage company)
                    Summary Financial Information

                                               Three months ended
                                       June 30, 1995       June 30, 1994
                                        (Unaudited)         (Unaudited)
Statements of Operations Data:

Total revenues                         $    602,000        $    20,000

Selling, general and administrative:
 Cost of sales                            1,127,000                 --
 Research and development                   276,000          2,009,000
 General and administrative                 775,000            874,000
 Total operating expenses                 2,178,000          2,883,000
Loss from operations                     (1,576,000)        (2,863,000)
Interest income                             121,000            127,000
Interest expense                                 --            (69,000)
Net loss                                $(1,455,000)       $(2,805,000)
Net loss per share                      $      (.17)       $      (.45)
Shares used in calculating
 net loss per share                       8,742,902          6,287,486
-0-

                                        June 30, 1995     March 31, 1995
                                         (Unaudited)         (Audited)
Balance Sheet Data:

Cash, cash equivalents and
 short-term investments                 $ 6,065,000        $ 7,195,000
Working capital                         $ 5,934,000        $ 7,109,000
Long-term investments                   $   650,000        $   700,000
Total assets                            $10,947,000        $12,147,000
Total shareholders' equity              $ 9,020,000        $10,436,000

CONTACT: ABAXIS Inc., Sunnyvale

Gary H. Stroy, 408/745-6854

or

Pondel Parsons & Wilkinson, Los Angeles

Rob Whetstone, 310/207-9300