Cholestech Announces Fiscal 1995 Results.

HAYWARD, Calif.--(BUSINESS WIRE)--May 3, 1995--Cholestech Corporation (NASDAQ:CTEC) announced today that revenues for the year ended March 31, 1995, were $4,037,800, a 33% increase compared to fiscal 1994. Net loss for the year was reduced 43% to $5,043,700 or $0.63 per share versus a loss of $8,910,100 or $1.14 per share last year. Domestic revenues grew to $3,221,000, a 75% increase over the previous year. Other financial highlights reported were a positive gross profit for the year of $105,400, the first positive gross profit reported by the Company for a twelve month period; a 26% reduction in operating expenses from the prior year and a fourth quarter net cash outlay of $468,000, down from $967,000 in the previous quarter.

Commenting on fiscal 1995, Warren E. Pinckert II, President and Chief Executive Officer of Cholestech Corporation stated, "Much was accomplished during the past twelve months. Our domestic sales grew at a rate of 75%, fueled by increased market share, sales of our HDL cholesterol products and the introduction of two glucose products. Although international sales, in total, were down from the prior year, if we eliminate the revenue produced by the completed Warner Lambert Europe promotion, on-going international sales increased approximately $420,000 year to year. We expect international sales growth to continue in fiscal 1996 with the recent signing of our Brazilian distribution agreement which we began shipping in late fiscal 1995."

Pinckert added, "During the past year Cholestech has put a great deal of effort into rationalizing our cost structure in order to enjoy higher operating margins in the future. Consequently, we were able to reduce operating expenditures by 26% from fiscal 1994. Furthermore, due to improved manufacturing yields and stabilization of quality assurance procedures, we were successful in reducing manufacturing overhead costs which, along with our increased volume, enabled us to achieve a positive gross profit for the year, our first ever."

Summarizing, Pinckert stated, "We are excited about our relationship with Fotobras in Brazil and we look forward to developing similar arrangements with other international distributors. We believe that our independent screener network and relationships with HMO's such as PacifiCare Health Systems will add to our sales base in fiscal 1996. We continue to be the only compact, portable system that can provide simple, quick and accurate point-of-care screening for total cholesterol, HDL cholesterol, triglycerides and glucose from a single drop of whole blood with no pre treatment steps in less than five minutes."

Cholestech Corporation is committed to helping people lead longer, healthier and more active lives by promoting accurate preventive health care screening and monitoring of diseases in a point-of-care setting. -0-

CHOLESTECH CORPORATION

CONDENSED STATEMENTS OF OPERATION
(Unaudited)

                                    Year ended       Year ended
                                  March 31, 1995   March 25, 1994

Revenues:
  Product sales:
    Domestic                       $ 3,221,000      $  1,844,300
    International                      816,800         1,185,000
                                     4,037,800         3,029,300

Costs of products sold               3,932,400         4,972,000

Gross profit/(loss)                    105,400        (1,942,700)

Operating expenses:
   Research and development            715,100         2,133,700
   Sales and marketing               2,694,100         2,909,000
   General and administrative        1,982,900         2,288,900
Total operating expenses             5,392,100         7,331,600

Loss from operations                (5,286,700)       (9,274,300)

Interest income                        278,300           447,300
Interest expense                       (35,300)          (83,100)
Net loss                           $(5,043,700)      $(8,910,100)
Net loss per share                    $   (.63)           $(1.14)

Weighted average common shares       7,954,284         7,790,684

CONTACT: Cholestech Corporation

Lola Moenich, 510/293-8096