Advanced NMR Systems reports financial results for fiscal 1995.

WILMINGTON, Mass.--(BUSINESS WIRE)--Dec. 15, 1995--Advanced NMR Systems, Inc. (NASDAQ: ANMR) today reported a net loss of $1,677,758 or $.07 per share, for the nine month period marking its fiscal year ended September 30, 1995, compared with a net loss of $1,341,788 or $.06 per share, for the comparable nine month period in 1994.

ANMR changed its year end to September 30 from December 31 at the time of its merger with Medical Diagnostics, Inc. (MDI). The company reported a net loss of $3,546,998, or $.15 per share, for the twelve month period ended December 31, 1994.

Excluding the company's share of losses in its majority-owned subsidiary, Advanced Mammography Systems, Inc. (NASDAQ: MAMO), a development stage company, ANMR was marginally profitable for the 1995 fiscal period. The company's financial results include only one month of operations of its wholly-owned subsidiary, Medical Diagnostics, Inc., which were, in turn, significantly affected by an accrual for certain payments due a former officer of the company.

Commenting on financial results issued today, Jack Nelson, ANMR's Chairman and Chief Executive Officer, said: "Clearly, we are disappointed that our strong performance in the first two quarters of fiscal 1995 did not carry forward to the third quarter which now marks the end of our fiscal 1995 period. Nevertheless, the fundamental conditions underlying our expectation that ANMR is positioned to be profitable in fiscal 1996 are unchanged. Our acquisition of a profitable MRI service business, sales of our 3T/4T very high field MR systems and InstaScan, our ultrafast MR retrofit for GE whole body MR scanners, as well as the anticipated revenue contribution of our dedicated MR Breast Imaging system support our confidence."

Consolidated revenues for fiscal 1995 were $8,617,632 including MDI's contribution for the month of September. Product revenues rose to $6,643,090 in the nine months of fiscal 1995 from $5,174,310 in the comparable nine months of fiscal 1994. The company noted it expects its Medical Diagnostics subsidiary to provide about $25 million of revenues in fiscal 1996 in line with its historical performance and that, based on its current order backlog of more than $4.5 million, it is expected that ANMR product sales will generate significantly higher revenues in the current fiscal year than were achieved in the prior twelve months.

Advanced NMR Systems, Inc. develops and manufactures ultrafast magnetic resonance imaging technology for clinical applications and advanced research and is a provider of diagnostic imaging and rehabilitation services through its wholly-owned subsidiary, Medical Diagnostics, Inc. The company is developing other components and systems for emergency room head trauma, functional neuro-imaging and orthopedic applications. Its majority-owned subsidiary, Advanced Mammography Systems, Inc. has filed for FDA clearance for commercial use of its dedicated MR Breast Imaging Systems which has been placed for beta test at the University of Texas Medical Branch at Galveston.

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             ADVANCED NMR SYSTEMS, INC. AND SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF OPERATIONS

                      Nine Months Ended             Year Ended
                         September 30,              December 31,
                      1995         1994          1994         1993
Revenues:                    (unaudited)
 System sales   $6,643,090   $5,174,310    $5,237,700   $1,894,900
 Net patient
  service
  revenue        1,934,322           --            --           --
 Management fees
  and other         40,220       50,500        50,500       41,057

 Total revenues  8,617,632    5,224,810     5,288,200    1,935,957

Operating expenses:
 Cost of
  goods sold     4,124,354    1,956,611     2,414,121    1,528,248
 Cost of service
  operations     1,203,497           --            --           --
 Research and
  development    1,907,945    2,187,291     2,954,509    3,290,002
 Selling,
  general and
  administrative 4,162,585    3,115,186     4,356,996    2,913,043
 Provision
  for bad debt
  and collection
  costs            162,377           --            --           --

 Total operating
  expenses      11,560,758    5,302,477     9,725,626    7,731,293

Loss from
 operations     (2,943,126)  (2,034,278)   (4,437,426)  (5,795,336)

Other income
 (expense)         579,758           --            --     (801,750)
Interest income    265,208      278,497       208,480      170,720
Interest expense  (148,952)     (74,806)      (21,017)    (155,225)

Net loss before
 minority
 interest       (2,247,112)  (1,830,587)   (4,249,963)  (6,581,591)
Minority interest
 in net loss
 of subsidiary     569,354      488,799       702,965      414,641

Net loss       $(1,677,758) $(1,341,788)  $(3,546,998) $(6,166,950)

Net loss per share   $(.07)       $(.06)        $(.15)       $(.32)

Weighted average
 number of shares
 outstanding    24,243,902   23,543,842    23,603,251   19,184,275

COTNACT: Eileen Kirrane

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