Biopsys Medical records first profitable quarter; second quarter sales exceed $3.3 million.

IRVINE, Calif.--(BUSINESS WIRE)--Jan. 15, 1997--Biopsys Medical Inc. (NASDAQ:BIOP) today announced that the company achieved the first profitable quarter in its history.

Net sales for the second quarter ended Dec. 31, 1996, totaled $3,302,000, compared to net sales of $538,000 in the second quarter of the prior year. Net sales for the six months ended Dec. 31, 1996, totaled $5,703,000, compared to net sales of $763,000 in the prior year's comparable period.

Net income for the quarter ended Dec. 31, 1996, totaled $144,000, or $0.01 per share, as compared to a net loss of $897,000, or $0.12 loss per share, for the comparable period of the prior year. For the six-month period, net income totaled $5,000, or $0.00 per share, compared to a net loss of $1,514,000, or $0.20 loss per share, during the same period of the prior year.

"We continue to experience strong market acceptance of our Mammotome(R) Biopsy System," stated Steven L. Gex, president and chief executive officer. "Sales in the second quarter increased by 38 percent over the prior quarter.

"As of Dec. 31, 1996, the Mammotome System had been installed in approximately 416 sites, which include physicians' offices, hospitals and breast imaging centers, and has now been used in approximately 40,000 procedures. The level of installations and increased volume of procedures reflect substantial increases from 317 sites and 23,000 procedures as of Sept. 30, 1996."

Sales of disposables accounted for 77 percent of total sales for the second quarter, as compared with 62 percent in fiscal 1996. Sales of the newly introduced 11-gauge Mammotome probe represented 36 percent of total probe sales during the current quarter, which is double the previous quarter.

"As the number of System installations grow, we expect to see a continuing increase in disposable sales. Our continued penetration in the market for minimally invasive diagnosis of breast cancer and our first profitable quarter add to our optimism about the future of Biopsys," 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. 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

Statement of
Operations Data:
                     Three Months Ended         Six Months Ended
                    Dec. 31,     Dec. 31,      Dec. 31,     Dec. 31,
                      1996         1995          1996         1995

Net sales         $ 3,302,000  $   538,000   $ 5,703,000  $   763,000
Cost of sales       1,404,000      317,000     2,510,000      470,000
 Gross profit       1,898,000      221,000     3,193,000      293,000

Operating expenses:
 Research &
  development         574,000      274,000     1,060,000      511,000
 Selling, general
  & administrative  1,664,000      915,000     3,081,000    1,418,000
  Total operating
   expenses         2,238,000    1,189,000     4,141,000    1,929,000

Other income          484,000       71,000       953,000      122,000
Net income (loss) $   144,000  $  (897,000)  $     5,000  $(1,514,000)
Net income (loss)
 per share (1)    $      0.01  $     (0.12)  $      0.00  $     (0.20)

Weighted
 average shares
 outstanding (1)   11,055,000    7,600,000    10,983,000    7,570,000


Balance Sheet Data:              Dec. 31, 1996    June 30, 1996

Cash, cash equivalents
  and marketable securities       $34,723,000      $37,387,000
Accounts receivable                 2,317,000          985,000
Inventory                           2,386,000        1,581,000
Total assets                       41,005,000       40,914,000
Total liabilities                   1,697,000        1,831,000
Total stockholders' equity         39,309,000       39,083,000

(1) Net loss per share and weighted average shares outstanding for
the three and six months ended Dec. 31, 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/Jon Squire, 415/296-7383

Joshua Passman/Emily Dupree, 212/850-5600