BIOLASE Technology Announces Second Quarter Results.

SAN CLEMENTE, Calif.--(BW HealthWire)--Aug. 15, 1997--BIOLASE TECHNOLOGY, INC. (NASDAQ:BLTI) today announced its fiscal second quarter and six month results for the periods ended June 30, 1997.

Sales for the 1997 second quarter were $432,941, compared to $161,137 in the year-earlier period, the Company reported a quarterly loss of $677,862, or $0.05 a share, versus a quarterly loss of $611,012, or $0.05 a share, last year.

For the 1997 six-month period, sales were $567,346, compared to $304,752 for the same period last year. For the six months, the Company reported a loss $1,445,596, or $0.11 a share, against a loss of $1,107,730, or $0.10 a share, for the comparable period in 1996.

"The turning point for BIOLASE occurred during this second quarter of operations with the first production units shipped of our new generation of laser-based products, the Millennium(TM), which incorporates our HydroKinetic(TM) technology," said Donald A. La Point, President and Chief Executive Officer of BIOLASE. "This event marks a major achievement for the Company and is the culmination of efforts over the past three years as we have moved HydroKinetic(TM) technology from a research and development project to commercial production.

"Although quarterly sales and gross profits increased 169% and 309%, respectively, compared to the prior year period, gross profits did not reflect the full impact of the increased sales as a result of production ramp-up costs associated with the first production run of our Millennium(TM) systems. Net income was adversely affected by incremental operating expenses incurred in anticipation of increases in sales and production. In addition, the Company recorded a provision for bad debt of approximately $96,000 when a bank claimed technical defects in documentation and refused to honor a letter of credit for goods shipped to a foreign customer. The Company is, however, continuing vigorous efforts to collect that debt."

Mr. La Point further stated, "While third quarter production activities will involve some additional ramp-up costs relating to production design and production layout, we expect continued growth in sales and improved margins and returns in the third quarter and beyond."

"Following the close of the quarter," Mr. La Point continued, "BIOLASE received the good news that it had been granted FDA clearance to market its newest advanced Er,Cr:YSGG laser-based system, the DermaLase(TM) surgical system, for use in a broad range of dermatological and soft tissue surgical applications. Substantial interest has already been shown in DermaLase(TM), and we intend to commence marketing that system both domestically and abroad in September 1997."

In conclusion, Mr. La Point stated, "During the third quarter and looking forward, we anticipate increased sales and production of Millennium(TM) systems and we intend to commence manufacturing of DermaLase(TM) systems and our soon-to-be-released light-amplified LaserBrush(TM). We also plan to aggressively pursue relationships with appropriate distributors for all of these products, both domestically and internationally."

BIOLASE Technology, Inc. manufactures and markets advanced medical, dental and surgical products, including laser systems, HydroKinetic(TM) surgical cutting systems, specialized biomaterials for dentistry and other medical specialties, and products for use in endodontic applications. The Company's products incorporate new patented and patent-pending technologies that achieve results not available through competing products.

The matters discussed in this news release include forward looking statements which are subject to various risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated in such forward looking statements. Such risks, uncertainties and other factors include, but are not limited to, the effect of actions of third parties, including governmental officials, the timely development and acceptance of new products, the impact of competitive products and pricing, and other risks detailed from time-to-time in the Company's filings with the Securities and Exchange Commission, including the reports on Forms 10-KSB and 10-Q.

Actual results may differ materially from those projected. These forward-looking statements represent the Company's judgment as of the date of this release. The Company disclaims, however, any intent or obligation to update these forward-looking statements. -0-

                    BIOLASE TECHNOLOGY, INC.
            Summary Consolidated Financial Information


                          Three Months Ended     Six Months Ended
                               June 30,              June 30,
                           1997        1996      1997         1996

Consolidated Statements      (unaudited)            (unaudited)
 of Operations Data:


Sales                    $432,941   $161,137     $567,346     $304,752
Gross profit             $102,565    $25,065     $124,100      $32,857
Operating expenses       $909,338   $643,287   $1,701,823   $1,157,481
Loss from operations    $(806,773) $(618,222) $(1,577,723) $(1,124,624)
Interest income, net     $128,911     $7,210     $132,127      $16,894
Net loss                $(677,862) $(611,012) $(1,445,596) $(1,107,730)
Net loss per share         $(0.05)    $(0.05)      $(0.11)      $(0.10)
Weighted average
 shares outstanding    13,409,608 11,299,783   13,250,603   11,276,800


                                       June 30,        December 31
                                        1997              1996
                                     (unaudited)

Consolidated Balance Sheet Data:

Working capital                       $2,956,455       $3,669,758
Total assets                          $4,003,741       $4,689,344
Long-term debt                        $       --       $       --
Stockholders' equity                  $3,316,518       $3,913,980

CONTACT: BIOLASE Technology, Inc.

Donald A. La Point, 714/361-1200