Cell Robotics Reports First-Quarter Financial Results.

Business Editors & Health/Medical Writers

ALBUQUERQUE, N.M.--(BW HealthWire)--May 15, 2000

Cell Robotics International Inc. (OTC:CRII), the developer of the Lasette(R), a laser finger perforator that allows diabetics to draw blood in a nearly painless manner as the first step in the life-saving process of obtaining a sample to test blood glucose levels, today announced financial results for the first quarter of its fiscal year 2000, ended March 31, 2000.

The company reported first-quarter revenues of $220,554, compared with revenues of $516,156 in the comparable 1999 quarter. The net loss applicable to common shareholders was $719,293, or a loss of $0.08 per share, compared with net loss applicable to common shareholders in the first quarter of 1999 of $936,817, or a loss of $0.14 per share.

During the first quarter, Cell Robotics' primary goal was to focus its efforts on certain design and production issues related to the Personal Lasette(R). The company now believes it has satisfactorily addressed all remaining concerns, which has enabled it to pursue full-scale production of the upgraded Personal Lasette.

Commenting on the first quarter, Dr. Ronald K. Lohrding, Cell Robotics' president and CEO, stated: "We were somewhat disappointed with first-quarter revenues; however, we did achieve our focused goal of correcting design and production concerns related to the Lasette. With these issues behind us, we are now in a position to turn loose our marketing and sales staff to aggressively pursue new orders. Furthermore, the company is entering the second quarter with a backlog of more than $250,000 in sales orders, including both Professional and Personal Lasette devices and Cell Robotics Workstations."

Lohrding further commented: "What has been most encouraging to me personally during the quarter is the validation that we continue to receive from our customers and their excitement about the Personal Lasette. For example, a middle-aged diabetes patient who had originally purchased the Professional Lasette traded it in for the new Personal Lasette and commented that he was delighted with the professional version, but liked the Personal Lasette even better because of its small size and because he felt even less pain."

Lohrding continued: "The following testimony from David Lenzner, a retired executive and business consultant, sums up the main idea behind the Personal Lasette: `When I was first diagnosed with diabetes, I used a needle twice a day to test my glucose levels. My fingers on both hands hurt constantly. With the purchase of the Lasette, my fingers are no longer sore and I am now pain-free as I go about my activities. Monitoring my glucose levels has changed from a dreaded task to a valuable health check-up. Since being diagnosed with diabetes, this is the best thing that has happened to me.'"

An estimated 1 billion times a year, capillary blood samples are collected to measure the blood glucose levels of people diagnosed with diabetes, sometimes called "the silent killer." Currently, nearly all these tests involve piercing the skin with a stainless steel lancet to draw blood to test their glucose levels.

This health-saving procedure is often neglected because of pain, residual soreness to the fingertips or "needle-phobia" (estimated to afflict 5% to 20% of the diabetic population). Uncontrolled glucose levels can lead to blindness, heart attacks, stroke, loss of limbs and/or the failure of vital organs such as kidneys or the liver.

According to the American Diabetes Association, there are 15.7 million people in the United States with diabetes, nearly 6% of the population, with 10.3 million officially diagnosed and approximately 4.7 million who are required to test their blood glucose levels several times a day.

Strategic Events

"We are very encouraged by the continued progress we have made in terms of our business development strategy," commented Lohrding. "Initially, our plan called for us to focus our efforts on the production, marketing and sales of the Personal Lasette, which has been achieved, in part, by continuing the process of transferring the manufacturing, marketing and sales of our In Vitro Fertilization products to Hamilton Thorne Research Inc.

"This will allow us to concentrate on Lasette and Workstation operations while still collecting royalties on our In Vitro Fertilization technology. The second step in our plan was to raise enough capital to optimize production and marketing of the Personal Lasette. We have achieved this goal through funding from two recently announced private placements.

"Finally, the third step of our plan requires the company to launch an aggressive marketing and sales campaign. Essentially, with increased availability of capital and the production of the Personal Lasette in high gear, Cell Robotics is able to increase its direct sales efforts and to target additional sales through domestic distributors of diabetic supplies, retail and Internet pharmacies, as well as starting to build our international distribution network."

Cell Robotics' marketing and sales strategy includes advertising this month in several major publications read by the more than 1.3 million individuals with diabetes. The company also has planned exhibits for major diabetic trade shows, starting with the Juvenile Diabetic Association meeting this week in Washington, D.C. from May 17-20, which is to be followed by the American Diabetes Association meeting in San Antonio June 9-13.

About Cell Robotics

Cell Robotics International Inc. is a medical products company committed to enhancing the quality of life through technology. CRII manufactures, markets and distributes the Lasette(TM), the only FDA-cleared alternative to the needle or steel blade lancet currently available for diabetics to draw blood so as to test their glucose levels, and the Cell Robotics Workstation, an innovative scientific research instrument that uses laser light to transform a microscope from a viewing device into a tool for physically manipulating and dissecting living cells in microspace.

Additional information on all Cell Robotics' products is available on the company's Web site at http://www.cellrobotics.com, by e-mail at [e-mail], or by telephone at 505/343-1131.

As a cautionary note to investors, certain matters discussed in this news release may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: changes in economic conditions; general competitive factors; the company's ability to execute its service and product sales plans; and the risks described from time to time in the company's Securities and Exchange Commission filings.

                   CELL ROBOTICS INTERNATIONAL INC.
                 Consolidated Statements of Operations
          For the three months ended March 31, 2000 and 1999
                              (UNAUDITED)

                                            Three Months Ended
                                      March 31, 2000    March 31, 1999

Product sales                         $    214,594      $    497,009
Research and development grants              5,960            19,147
      Total revenues                       220,554           516,156
Product cost of goods sold                (170,994)         (337,900)
SBIR direct expenses                        (5,960)          (19,147)
      Total cost of goods sold            (176,954)         (357,047)
Gross profit                                43,600            59,109
Operating expenses:
   General and administrative              503,080           334,290
   Marketing & Sales                       134,278           136,402
   Research and development                125,267           121,032
      Total operating expenses             762,625           591,724
Loss from operations                      (719,025)         (432,615)
Other income (deductions):
   Interest income                           3,287            10,395
   Interest expense                         (3,555)              (49)
      Total other income                      (268)           10,346
      Net loss                            (719,293)         (422,269)
Preferred stock dividends                       --          (514,548)
      Net loss applicable to
       common shareholders            $   (719,293)     $   (936,817)

Weighted average common shares
 outstanding, basic and diluted          8,513,547         6,681,998

Net loss applicable to common
 shareholders per common share,
 basic and diluted                    $      (0.08)     $      (0.14)


                   CELL ROBOTICS INTERNATIONAL INC.
                            AND SUBSIDIARY
                      Consolidated Balance Sheets

                                          As of             As of
                                         3-31-00           12-31-99
                                       (UNAUDITED)
Assets
Current assets:
  Cash and cash equivalents           $  1,187,240      $    358,379
  Accounts receivable, net of
   allowance for doubtful accounts
   of $23,841 in 2000 and 1999             240,487           206,278
  Inventory                                913,215           897,971
  Other                                     36,847            36,543
     Total current assets                2,377,789         1,499,171
  Property and equipment, net              464,026           485,556
  Other assets, net                         27,731            28,939
     Total assets                     $  2,869,546      $  2,013,666

Liabilities and Stockholders' Equity
Current liabilities:
  Current portion of notes payable    $    825,000      $          0
  Accounts payable                         457,841           684,403
  Payroll-related liabilities              164,774           116,617
  Royalties payable                         60,002            67,519
  Other current liabilities                 35,980            40,294
     Total current liabilities           1,543,597           908,833
  Notes payable                            125,000           250,000
     Total liabilities                   1,668,597         1,158,833

Stockholders' equity:
  Common stock, $.004 par value.
   Authorized 12,500,000 shares,
   8,818,763 and 8,244,121 shares
   issued and outstanding at March 31,
   2000, and Dec. 31, 1999,
   respectively                             35,275            32,976
  Additional paid-in capital            20,218,018        19,154,908
  Accumulated deficit                  (19,052,344)      (18,333,051)
     Total stockholders' equity          1,200,949           854,833
                                      $  2,869,546      $  2,013,666