Cholestech announces first quarter results.

HAYWARD, Calif.--(BUSINESS WIRE)--July 26, 1995--Cholestech Corporation (Nasdaq: CTEC) announced today net revenues of $1,369,000 for the first quarter of fiscal 1996 ended June 30, 1995, an increase of 51% versus $904,000 reported in the same period a year ago. For the first quarter, Cholestech reported a gross profit of $491,000 compared to a negative gross profit of $311,000 in the prior year; and a net loss of $671,000 compared to a net loss of $1,706,000 in the prior year. Contributing to the company's performance was a 20% decline in expenses over the year ago period.

Domestic product sales increased 110% to $1,070,000 from $510,000 in the first quarter of fiscal 1995. International product sales decreased from $394,000 last year to $299,000 this year. The Warner Lambert/Parke Davis Corporation promotional arrangement, completed in the first quarter of fiscal 1995, accounted for $112,000 in that period.

Commenting on the results, Mr. Warren E. Pinckert II, president and chief executive officer, said "Our results this quarter reflect the continued emphasis on increasing product sales while maintaining control over our costs. It is gratifying to report that with sales up 51%, we have been able to decrease our net loss for the quarter $1,035,000 or 61%."

Mr. Pinckert continued, "In looking to the future, we should be in a position to continue to realize sales growth within the current cost structure. However, it is important to recognize the cyclical nature of some markets in which our products are used. For example, our customers' buying patterns reflect the anticipated reduction in screenings during the summer months and typically this is then reflected in our second quarter results."

Cholestech Corporation is a leading manufacturer of point-of-care screening and diagnostic equipment. Cholestech is uniquely positioned to benefit from the increasing emphasis on preventive health care and disease management programs in the United States. Cholestech's portfolio of products is designed to offer efficient and economic screening and monitoring options that will ultimately enable people to lead longer, healthier and more active lives. -0-

                      CHOLESTECH CORPORATION
                     STATEMENTS OF OPERATIONS
            (In thousands, except per share amounts)
                           (Unaudited)

                              Thirteen weeks ended
                              6/30/95      6/24/94

Net sales
   Domestic                    $1,070        $510
   International                  299         394
                                1,369         904

Cost of product sales             878       1,215
Gross profit (loss)               491        (311)
Operating expenses
   Research and development       224         256
   Sales and marketing            669         621
   General and administrative     354         569
Total operating expenses        1,247       1,446
Loss from operations             (756)     (1,757)

Other income/expense, net          85          51

Net loss                        $(671)    $(1,706)

Net loss per share             $(0.08)     $(0.22)

Weighted average number of
   shares outstanding        8,000,632   7,915,033

-0-

CONTACT: Cholestech Corp.

Lola Moenich, 510/293-8096