Cell Robotics Reports Third-Quarter Financial Results.

Business Editors & Health/Medical Writers

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

Cell Robotics International Inc. (OTC:CRII), the developer of the Lasette(R), a laser finger perforator that allows diabetics to draw blood without needles and in a nearly painless manner, today announced financial results for the third quarter of its fiscal year 2000, ended Sept. 30, 2000.

The company reported third-quarter revenues of $282,662 compared with revenues of $264,476 in the comparable 1999 quarter. The net loss applicable to common shareholders was $2,557,127, or a loss of $0.27 per share, compared with a net loss applicable to common shareholders in the second quarter of 1999 of $455,249, or a loss of $0.06 per share.

For the nine-month period ended Sept. 30, 2000 the company reported revenues of $766,378 compared with revenues of $1,381,257 in the comparable period during 1999. The nine-month net loss applicable to common shareholders was $4,088,825, or $0.45 per share, compared with a net loss applicable to common shareholders in the same period of 1999 of $1,822,005, or $0.24 per share.

The increased loss in 2000 over 1999 for both the three and nine-month periods is primarily due to non-cash charges. In August, the company converted into Common Stock its Secured Convertible Note. Due to accounting regulations, a non-cash, beneficial conversion charge of $1.2 million was recorded in interest expense.

Additionally, extensive costs associated with a May 2000 private placement were paid for in stock and charged to expense, enabling the company to preserve its cash.

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

The market on which the company is focusing is significant. 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.

"We estimate that an only 1% penetration of the U.S. diabetic market yields a $55 million market. An equivalent 1% 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.

Lohrding further commented, "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."

Travis Lee, vice president for Sales and Marketing stated, "Our marketing and sales efforts are now at full speed with the recent capable additions to our U.S. regional sales staff. We are now able to focus on three primary markets for the Lasette."

Lee continued, "Of considerable significance to our Lasette sales is the November 6th, 2000 signing into law by President Clinton of the Needlestick Safety and Prevention Act. This act requires changes in bloodborne pathogens standards in effect under the Occupational Safety and Health Act of 1970 (OSHA) to mandate health facilities to employ measures to reduce or eliminate accidental needlesticks suffered by health care workers.

"This legislation is designed to protect healthcare workers from blood borne diseases such as HIV and hepatitis from accidental needlesticks in the workplace. Thus the first area of concentration is the sale of Lasette into clinical settings such as hospitals, clinics, physicians' offices and blood banks through our direct sales force and distributors. The Lasette is the ultimate in safety devices since it is able to produce a sample of blood without the use of a needle.

"Secondly, we continue to pursue national retail and wholesale distribution agreements to make the Lasette available to consumers. As more and more clinics and physicians are informed about the Lasette and write prescriptions, their patients will then be seeking out the device at their local pharmacies and diabetic supply outlets."

Lee concluded, "International distribution continues to grow in Europe, South America and Asia. Last week we were overwhelmed with the interest at the International Diabetes Meeting in Mexico City. Physicians and educators from around the world expressed their interest in making this technology available to their patients and placed orders for Lasettes at the show.

"This aggressive distribution strategy, coupled with our expanded advertising campaign and other promotional efforts, should produce continually improving results in the first part of 2001."

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


                                             UNAUDITED
                                         Three Months Ended
                               Sept. 30, 2000          Sept. 30, 1999

Product sales                  $       272,633        $       205,744
Research and development
  grants                                10,029                 58,732
 Total revenues                        282,662                264,476

Product cost of goods sold            (724,410)              (185,785)
SBIR direct expenses                   (10,029)               (56,938)
 Total cost of goods sold             (734,439)              (242,723)

Gross profit (loss)                   (451,777)                21,753
Operating expenses:
 General and administrative            255,699                202,664
 Marketing and sales                   386,092                150,944
 Research and development              264,677                129,843
  Total operating expenses             906,468                483,451

Loss from operations                (1,358,245)              (461,698)

Other income (expense):
 Other income                           24,585                  6,968
 Interest expense                   (1,223,467)                  (519)
 Total other income
  (expense)                         (1,198,882)                 6,449

 Net loss                      $    (2,557,127)       $      (455,249)

Weighted average
 common shares
 outstanding, basic
 and diluted                         9,610,079              8,202,785

Net loss per
 common share,
 basic and diluted             $         (0.27)       $         (0.06)



                   CELL ROBOTICS INTERNATIONAL, INC.
                 Consolidated Statements of Operations


                                            UNAUDITED
                                         Nine Months Ended
                               Sept. 30, 2000          Sept. 30, 1999

Product sales                  $       749,055        $     1,271,293
Research and
 development grants                     17,323                109,964
  Total revenues                       766,378              1,381,257

Product cost of goods
 sold                               (1,249,940)              (941,073)
SBIR direct expenses                   (17,323)              (108,170)
  Total cost of goods
   sold                             (1,267,263)            (1,049,243)

Gross profit (loss)                   (500,885)               332,014

Operating expenses:
 General and administrative          1,027,505                757,235
 Marketing and sales                   771,522                505,168
 Research and development              578,244                397,701
  Total operating expenses           2,377,271              1,660,104

Loss from operations                (2,878,156)            (1,328,090)

Other income (expense):
 Other income                           43,951                 22,024
 Interest expense                   (1,254,620)                  (659)
  Total other income
   (expense)                        (1,210,669)                21,365

Net loss                            (4,088,825)            (1,306,725)

Preferred stock
  dividends                                 --               (515,280)
 Net loss applicable
  to common shareholders       $    (4,088,825)       $    (1,822,005)

Weighted average
 common shares
 outstanding, basic
 and diluted                         9,057,133              7,568,249

Net loss applicable
 to common shareholders
 per common share,
 basic and diluted             $         (0.45)       $         (0.24)



            CELL ROBOTICS INTERNATIONAL INC. AND SUBSIDIARY
                      Consolidated Balance Sheets

                                     As of                    As of
                                 September 30,            December 31,
                                    2000                      1999
                                 (Unaudited)
Assets
Current assets:
 Cash and cash equivalents     $     2,003,068        $       358,379
 Accounts receivable, net
  of allowance for
  doubtful accounts of
  $1,841 and $23,841 in 2000
  and 1999, respectively               266,144                206,278
 Inventory                           1,073,362                897,971
 Other                                  72,919                 36,543
  Total current assets               3,415,493              1,499,171
Property and equipment, net            479,119                485,556
Other assets, net                       25,316                 28,939
  Total assets                 $     3,919,928        $     2,013,666


Liabilities and Stockholders'
 Equity
Current liabilities:
 Accounts payable              $       265,301        $       684,403
 Note payable                          250,000                     --
 Payroll related liabilities           176,078                116,617
 Royalties and commissions
  payable                               66,882                 67,519
 Other current liabilities             517,648                 40,294
   Total current liabilities         1,275,909                908,833
 Note payable                               --                250,000
   Total liabilities                 1,275,909              1,158,833

Stockholders' equity:
 Preferred stock, $.04 par
  value. Authorized
  2,500,000 shares, zero
  shares issued and
  outstanding at September
  30, 2000 and
  December 31, 1999                          0                      0
 Common stock, $.004 par
  value.  Authorized
  50,000,000 shares,
  9,965,644 and 8,244,121
  shares issued and
  outstanding at September
  30, 2000 and December
  31, 1999, respectively                39,863                 32,976
 Additional paid-in capital         25,026,032             19,154,908
 Accumulated deficit               (22,421,876)           (18,333,051)
   Total stockholders' equity        2,644,019                854,833
                               $     3,919,928        $     2,013,666