Biopsys Medical Records Second Consecutive Profitable Quarter; Third Quarter Sales Exceed $4.3 Million.

IRVINE, Calif.--(BW HealthWire)--April 15, 1997---Biopsys Medical, Inc. (NASDAQ:BIOP) today announced that the Company achieved its second consecutive profitable quarter.

Net sales for the third quarter ended March 31, 1997, totaled $4,342,000, compared to net sales of $1,042,000 in the third quarter of the prior year. Net income for the quarter was $601,000, or $0.05 per share, as compared to a net loss of $1,031,000, or $(0.13) per share, for the comparable period of the prior fiscal year.

Net sales for the nine months ended March 31, 1997 totaled $10,045,000, compared to net sales of $1,805,000 in the prior year's comparable period. Net income for the nine months totaled $607,000, or $0.06 per share, compared to a net loss of $2,545,000, or $(0.33) per share, during the same period of the prior year.

"We continue to experience strong market acceptance of our Mammotome(R) Biopsy System," said Steven L. Gex, president and chief executive officer. "Sales in the third quarter represented our third consecutive quarter of growth in excess of 30% and we recorded a profit from operations during the quarter. As of March 31, 1997, the Mammotome System had been installed in approximately 516 sites, which include physicians' offices, hospitals and breast imaging centers, and has now been used in approximately 58,000 procedures. The level of installations and increased volume of procedures reflect substantial increases from 416 sites and 40,000 procedures as of December 31, 1996.

"Sales of disposables accounted for approximately 80% of total sales during the third quarter, as compared with 62% in fiscal 1996. Sales of the larger 11-gauge Mammotome probe increased to 46% of total probe sales during the current quarter and sales of the MicroMark(TM) Clip slightly exceeded our expectations. Our continued penetration of the market for percutaneous diagnosis of breast cancer and our second consecutive profitable quarter add to our optimism about the future of Biopsys," Mr. Gex concluded.

Except for the historical information contained herein, this press release contains forward looking statements that involve risks and uncertainties that could cause actual results to differ materially. These factors include the rate and extent of market acceptance of the Mammotome Biopsy System, competitive factors including the risk of price competition, and the ability of the company to manufacture the Mammotome Biopsy System in sufficient quantities and on a cost effective basis.

Biopsys Medical, Inc. is a leading developer, manufacturer and marketer of products for the diagnosis and management of breast cancer. -0-

                      Biopsys Medical, Inc.
                     Selected Financial Data

Statement of Operations Data

                        Three Months Ended      Nine Months Ended
                      March 31,   March 31,    March 31,   March 31,
                        1997        1996         1997        1996

Net sales           $4,342,000  $1,042,000  $10,045,000   $1,805,000
Cost of sales        1,726,000     581,000    4,236,000    1,051,000
 Gross profit        2,616,000     461,000    5,809,000      754,000

Operating expenses:
Research &
 development           591,000     516,000    1,650,000    1,027,000
Selling, general &
 administrative      1,903,000   1,021,000    4,984,000    2,439,000
Total operating
 expenses            2,494,000   1,537,000    6,634,000    3,466,000
Income (loss) from
 operations            122,000  (1,076,000)    (825,000)  (2,712,000)
Other income           479,000      45,000    1,432,000      167,000
Net income (loss)     $601,000 ($1,031,000)    $607,000  ($2,545,000)
Net income (loss)
 per share (1)           $0.05      ($0.13)       $0.06       ($0.33)
Weighted
 average shares
 outstanding (1)    11,217,000   7,641,000   11,031,000    7,619,000


Balance Sheet Data:            March 31, 1997       June 30, 1996

Cash, cash equivalents and
 marketable securities         $35,217,000           $37,387,000
Accounts receivable              2,392,000               985,000
Inventory                        2,602,000             1,581,000
Total assets                    42,289,000            40,914,000
Total liabilities                2,033,000             1,831,000
Total stockholders' equity      40,256,000            39,083,000

(1)  Net loss per share and weighted average shares outstanding for
the three and nine months ended March 31, 1996 are computed on a pro
forma basis assuming conversion of the then outstanding preferred
stock.

CONTACT: Biopsys Medical, Inc.

Steve Naber, 714/460-7800

or

Morgen-Walke Associates, Inc.

John Swenson, Doug Sherk, 415/296-7383

Joshua Passman, Emily Dupree, 212/850-5600