Cell Robotics Reports Second-Quarter Financial Results.

Business Editors & Health/Medical Writers

ALBUQUERQUE, N.M.--(BW HealthWire)--Aug. 14, 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 second quarter of its fiscal year 2000, ended June 30, 2000.

The company reported second-quarter revenues of $263,162 compared with revenues of $600,624 in the comparable 1999 quarter. The net loss applicable to common shareholders was $812,403, or a loss of $0.09 per share, compared with a net loss applicable to common shareholders in the second quarter of 1999 of $429,207, or a loss of $0.06 per share.

For the six-month period ended June 30, 2000, the company reported revenues of $483,716 compared with revenues of $1,116,780 in the comparable period during 1999. The six-month net loss applicable to common shareholders was $1,531,696, or $0.17 per share, compared with a net loss applicable to common shareholders in the same period of 1999 of $1,366,756, or $0.19 per share.

The increased loss in 2000 over 1999 for both the three- and six-month periods is primarily due to non-cash charges. As a result of the private placement completed in May 2000 and the convertible note issued in March 2000, the company completed various contracts and was required to file a registration statement with the Securities and Exchange Commission.

The costs associated with this work were extensive; however, the company was able to pay for this work with its common stock. This process resulted in a charge to expense, but the company preserved its cash to pay for future operations.

The sales decline for both the three and six months ended June 30, 2000, is due to the strategic decision the company made in 1999 to focus its efforts on the general diabetic market and its award-winning Lasette, which enables diabetics to test their blood glucose levels without the pain or residual soreness often caused by steel lancets.

This decision required the company to change its emphasis from the sales of scientific instrumentation products and laser-based medical products marketed to the professional medical community to laser-based medical products marketed to the general public. The market on which the company is focusing is significant.

"We estimate that at only 1% penetration of the U.S. diabetic market, the Lasette would bring us annual revenues of $55 million. Equivalent global penetration would be worth $137 million. These figures have driven our decision to focus our resources on ramping up production, augmenting our staff and bolstering our marketing efforts in connection with these exciting products," said Ronald K. Lohrding, Ph.D., the company's president and CEO.

"So while our financial results temporarily reflect the downside of re-focusing our company on the Lasette, we are confident that we are laying the foundation for long-term growth in an enormous, global market where we have something truly unique and life-enhancing to offer to millions of people."

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 of 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.

Lohrding has published a letter to shareholders, a copy of which can be found at the company's Web site, http://www.cellrobotics.com. In that letter, Lohrding states: "The first three quarters of 2000 have been and are focused on solving the product development and production challenges associated with the Lasette. Therefore, sales have been and are slower than we would like. We expect the results of our development and marketing efforts to have a strong positive impact on fourth-quarter sales."

Lohrding's letter addresses the company's strategies to achieve significantly greater sales, which include media advertising and partnerships with strong national and international distributors. In closing, he states, "The Cell Robotics team is fully convinced of the extraordinary potential of the Lasette in both the domestic and international market and we are very enthusiastic about our future prospects.

"While we are weathering the `new product launch' challenges that most small companies face, we have cleared several major regulatory hurdles. We have strengthened our management team. We have strong customer testimonials, and now with new capital, all of us are excited about our sales and marketing campaign and the future of Cell Robotics."

About Cell Robotics

Cell Robotics International Inc. is a medical products company committed to enhancing the quality of life through technology. The company manufactures, markets and distributes the Lasette, 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. AND SUBSIDIARY
                 Consolidated Statements of Operations
           For the three months ended June 30, 2000 and 1999

                                              Three Months Ended
                                         June 30, 2000   June 30, 1999
                                                 (UNAUDITED)

Product sales                              $    261,828  $    568,540
Research and development grants                   1,334        32,084
         Total revenues                         263,162       600,624

Product cost of goods sold                     (354,535)     (417,388)
SBIR direct expenses                             (1,334)      (32,084)
         Total cost of goods sold              (355,869)     (449,472)

Gross profit (loss)                             (92,707)      151,152

Operating expenses:
     General and administrative                 337,422       217,376
     Marketing & Sales                          206,068       234,938
     Research and development                   164,688       132,616
         Total operating expenses               708,178       584,930

Loss from operations                           (800,885)     (433,778)

Other income (expense):
     Interest income                             16,080         4,662
     Interest expense                           (27,598)          (91)
         Total other income (expense)           (11,518)        4,571

         Net loss                              (812,403)     (429,207)

         Net loss applicable to
          common shareholders              $   (812,403) $   (429,207)

Weighted average common shares
 outstanding, basic and diluted               9,037,152     7,803,264

Net loss applicable to common shareholders
 per common share, basic and diluted       $      (0.09) $      (0.06)


            CELL ROBOTICS INTERNATIONAL INC. AND SUBSIDIARY
                 Consolidated Statements of Operations
            For the six months ended June 30, 2000 and 1999

                                               Six Months Ended
                                         June 30, 2000   June 30, 1999
                                                  (UNAUDITED)

Product sales                              $    476,422  $  1,065,549
Research and development grants                   7,294        51,231
         Total revenues                         483,716     1,116,780

Product cost of goods sold                     (525,529)     (755,289)
SBIR direct expenses                             (7,294)      (51,231)
         Total cost of goods sold              (532,823)     (806,520)

Gross profit (loss)                             (49,107)      310,260

Operating expenses:
     General and administrative                 840,502       551,665
     Marketing & Sales                          340,346       371,340
     Research and development                   289,955       253,648
         Total operating expenses             1,470,803     1,176,653

Loss from operations                         (1,519,910)     (866,393)

Other income (expense):
     Interest income                             19,367        15,057
     Interest expense                           (31,153)         (140)
         Total other income (expense)           (11,786)       14,917

         Net loss                            (1,531,696)     (851,476)

Preferred stock dividends                            --      (515,280)
         Net loss applicable to
          common shareholders              $ (1,531,696) $ (1,366,756)

Weighted average common shares
 outstanding, basic and diluted               8,777,218     7,245,733

Net loss applicable to common shareholders
 per common share, basic and diluted       $      (0.17) $      (0.19)


            CELL ROBOTICS INTERNATIONAL INC. AND SUBSIDIARY
                      Consolidated Balance Sheets

                                               As of          As of
                                              6-30-00       12-31-99
                                            (UNAUDITED)
Assets
Current assets:
     Cash and cash equivalents             $  2,735,923  $    358,379
     Accounts receivable, net of
      allowance for doubtful accounts
      of $1,841 and $23,841 in 2000
      and 1999, respectively                    331,451       206,278
     Inventory                                  937,743       897,971
     Other                                       62,603        36,543
         Total current assets                 4,067,720     1,499,171
Property and equipment, net                     422,102       485,556
Other assets, net                                62,535        28,939
              Total assets                 $  4,552,357  $  2,013,666

Liabilities and Stockholders' Equity
Current liabilities:
     Accounts payable                      $    256,855  $    684,403
     Notes payable                            1,450,000            --
     Payroll-related liabilities                145,345       116,617
     Royalties payable                           72,624        67,519
     Other current liabilities                   51,355        40,294
              Total current liabilities       1,976,179       908,833
     Note payable                                    --       250,000
              Total liabilities               1,976,179     1,158,833

Stockholders' equity:
     Preferred stock, $.04 par value.
      Authorized 2,500,000 shares, no
      shares issued and outstanding
      at June 30, 2000, and Dec. 31, 1999             0             0
     Common stock, $.004 par value.
      Authorized 50,000,000 shares,
      9,403,763 and 8,244,121 shares
      issued and outstanding at June 30,
      2000, and Dec. 31, 1999, respectively      37,615        32,976
     Additional paid-in capital              22,403,310    19,154,908
     Accumulated deficit                    (19,864,747)  (18,333,051)
              Total stockholders' equity      2,576,178       854,833
                                           $  4,552,357  $  2,013,666