Caprius, Inc. Reports Third Quarter Financial Results.

WILMINGTON, Mass.--(BUSINESS WIRE)--Aug. 14, 1998--Caprius, Inc. (NASDAQ:CAPR) announced today the net loss for its third quarter of fiscal 1998 ended June 30th was $2,075,786, or $ 0.28 per share.

For the first nine months of the current year, net losses totaled $13,170,066, or $1.91 per share, which includes the non-cash charge of $7,168,647 in the first quarter for purchased research and development pursuant to the merger with Advanced Mammography Systems.

Commenting on the financials, Jack Nelson, Chairman and CEO, stated, "The results continue to reflect the significant investment in the Company's Aurora(R) dedicated breast MRI (magnetic resonance imaging) system. We are optimistic that with the early results from the Faulkner-Sagoff Breast Imaging and Diagnostic Centre and with the scheduled openings of the Aurora(R) sites at Englewood Hospital and Medical Center in Englewood, New Jersey and Magee Womens Hospital in Pittsburgh, Pennsylvania, the Company will see increased revenues over the next several quarters. This, together with the recent acquisition of the Strax Institute in Lauderhill, Florida, falls into place with the strategic plan of the Company and will create long term shareholder value."

Caprius, Inc. is dedicated to the development and commercialization of the Aurora system, a breast imaging system based on magnetic resonance imaging (MRI). The Aurora is the only FDA-cleared, MRI-based, dedicated breast imaging system in the United States.

Safe Harbor Statement:

The statements made in this press release which are not historical fact are "forward-looking statements" which are based upon current expectations that include a number of risks and uncertainties. Factors that could cause actual results to differ materially from the forward-looking statements include delays in product development, lack of market acceptance of technology, technological innovations of competitors and changes in health care regulations, including reimbursement programs. Additional factors that could potentially affect the Company's financial results may be found on the Company's filings with the Securities and Exchange Commission. -0-

                    CAPRIUS, INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF OPERATIONS
                              (Unaudited)

                         Three Months Ended        Nine Months Ended
                               June 30,                June 30,
                          1998        1997       1998          1997

Revenues:
 Net patient service
  revenues            $  963,441  $  920,563 $ 2,680,804  $ 11,608,067
 Management fees
  and other                 --          --          --         287,316
    Total revenues       963,441     920,563   2,680,804    11,895,383

Operating Expenses:
 Cost of service
  operations             999,143     770,836   2,482,643     8,269,199
 Research and
  development            880,768        --     2,280,408          --
 Purchased research
  and development           --          --     7,097,566          --
 Selling, general and
  administrative         965,043     758,548   3,782,899     3,045,433
 Provision for bad
  debt and collection
  costs                   73,099       1,810     233,871       849,842
 Total operating
    expenses           2,918,053   1,531,194  15,877,387    12,164,474
 Operating income
    (loss) from
    continuing
    operations        (1,954,612)   (610,631)(13,196,583)     (269,091)
Gain (loss) on
 sale of
 imaging business         (8,075)   (144,922)     53,393    (9,377,283)
Other income                --         6,541       3,050       239,611
Interest income           46,018     113,848     278,461       149,674
Interest expense         (60,940)    (34,656)   (142,852)     (950,056)
Income (loss) from
  continuing operations
  before minority interests,
  equity in loss of
  subsidiary and provision
  for income taxes    (1,977,609)   (669,820)(13,004,531)  (10,207,145)
Minority interests
 in net losses of
 consolidated
 entities                   --          --          --        (202,234)
Equity in net loss of
 unconsolidated
 subsidiary                 --      (232,041)    (67,358)   (1,190,108)
Loss from continuing
 operations
 before provision
 for income taxes     (1,977,609)   (901,861)(13,071,889)  (11,599,487)
Provision for income
 tax (expense)
 benefit                 (98,177)    (40,000)    (98,177)       63,445
Loss from continuing
  operations          (2,075,786)   (941,861)(13,170,066)  (11,536,042)
Income from
 operations of
 discontinued
 division                   --        15,549        --          58,450
 Net Loss            $(2,075,786) $(926,312)$(13,170,066)$(11,477,592)
Income (loss) per
 basic and diluted
 common share:
  Loss from
   continuing
   operations             $(0.28)     $(0.22)     $(1.91)       $(2.85)
  Income from
   operations of