Biopsys Medical first quarter sales exceed $2.4 million.

IRVINE, Calif.--(BUSINESS WIRE)--Oct. 15, 1996--Biopsys Medical, Inc. (NASDAQ: BIOP) today announced that net sales for the first quarter ended September 30, 1996 totaled $2,401,000, compared to net sales of $224,000 in the first quarter of the prior year.

The net loss for the first quarter was $138,000, or a $0.01 loss per share as compared to a net loss of $616,000, or a $0.08 loss per share for the comparable period of the prior year.

"We continue to experience strong market acceptance of our Mammotome Biopsy System," stated Steven L. Gex, president and chief executive officer. "Sales in the September quarter increased by 44% over the June quarter. As of September 30, 1996, the Mammotome System had been installed in approximately 317 sites, which include physicians' offices, hospitals and breast imaging centers, and has been used in more than 23,000 procedures. The level of installations and increased volume of procedures reflect substantial increases from 220 sites and 13,000 procedures as of June 30, 1996.

Sales of disposables as a percentage of total sales was 70% in the first quarter, as compared with 62% in fiscal 1996. "As the number of System installations grow, we expect to see an increase in disposable sales," Gex added. "Looking ahead, we believe our momentum is continuing into the new fiscal year as we continue to penetrate the market for minimally invasive diagnosis of breast cancer. On September 18, 1996, Biopsys announced the launch of two new products to augment the performance of the Mammotome Biopsy System.

"These products include the new 11-gauge Mammotome probe and MicroMark Clip, which will enable physicians to take larger breast biopsy tissue samples and mark the biopsy site for subsequent follow-up."

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. Through its principal product, the Mammotome Biopsy System, the Company offers a less-invasive, cost-effective alternative to open surgical biopsy. -0-

                      Biopsys Medical Inc.
                     Selected Financial Data

                                             Quarter ended
Statement of Operations Data:     Sept. 30, 1996    Sept. 30, 1995

Net sales                             $2,401,000          $224,000
Cost of sales                          1,106,000           153,000
 Gross profit                          1,295,000            71,000
Operating expenses:
 Research & development                  485,000           236,000
 Selling, general and
  administrative                       1,417,000           503,000
 Total operating expenses              1,902,000           739,000
Other income                             469,000            52,000
Net loss                               ($138,000)        ($616,000)
Net loss per share (a)                    ($0.01)           ($0.08)
Weighted average shares
 outstanding (a)                      10,274,000         7,593,000


Balance Sheet Data:               Sept. 30, 1996     June 30, 1996

Cash, cash equivalents and
 marketable securities               $35,751,000       $37,387,000
Accounts receivable                    1,473,000           985,000
Inventory                              2,160,000         1,581,000
Total assets                          40,529,000        40,914,000
Total liabilities                      1,470,000         1,831,000
Total stockholders' equity            39,059,000        39,083,000


(a). Net loss per share and weighted average shares outstanding at
Sept. 30, 1995 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.

Doug Sherk, Jenifer Kirtland, Jon Squire

415/296-7383

Andrew Cella, Emily Dupree

212/850-5600