E-Z-EM announces results for fiscal year and fourth quarter 1996.

WESTBURY, N.Y.--(HealthWire)--Aug. 19, 1996--

Angiodynamics division shows strong sales growth and improved operating results

E-Z-EM Inc. (AMEX: EZMA and EZMB) today announced results for the fiscal year and fourth quarter ended June 1, 1996.

Net sales for the year were $91,932,000, a four percent increase from $88,526,000 in the prior year. The company reported net earnings of $21,008,000, or $2.16 per share on a primary basis, compared to net earnings of $1,630,000, or 18 cents per share, last year. During 1996, the company recognized an after-tax gain of $19,520,000, or $2.01 per share on a primary basis, from the sale of its 51 percent-owned subsidiary, Surgical Dynamics Inc., to the United States Surgical Corp.

Earnings from continuing operations were $1,697,000, or 17 cents per common share, compared to earnings of $2,473,000, or 27 cents per share, for the prior year. A one-week shorter reporting period this year, coupled with unabsorbed overhead costs of $2.5 million due to manufacturing site relocation, adversely impacted earnings.

Net sales for the fourth quarter were $25,378,000, a 1 percent decrease from sales of $25,748,000 for the comparable quarter in fiscal 1995. Results were adversely affected by a reporting period one week shorter than last year's quarter, and by unabsorbed overhead costs of $547,000 for plant relocation as mentioned above. Earnings from continuing operations were $442,000, or four cents per share, compared to 1,802,000, or 20 cents per share, in fiscal 1995.

Commenting on the annual and quarterly results, E-Z-EM's president and chief executive officer, Daniel R. Martin, stated that, "Total net sales for E-Z-EM increased modestly this fiscal year, despite a reporting period one week shorter than last year. Heavy price pressures from healthcare cost controls were offset by the introduction of four new products by the Imaging Products Division during the year: Entero Vu(TM), a barium-based formulation specifically designed for improving small bowel radiographic studies; newly designed enteroclysis catheters; PercuPump(R) II, a new generation of Touch-Screen(TM) injectors for CT studies; and E-Z-CAT(R) Dry, a new barium contrast agent for abdominal/pelvic CT examination. Initial sales of these products have been encouraging.

"Investment in our AngioDynamics division began to pay off during the quarter and the year, with net sales up 59% and 55%, to $3,654,000 and $11,404,000, respectively; operating results improved $368,000 for the quarter and almost $3 million for the year over fiscal 1995, a result of increased sales and improved manufacturing efficiencies. AngioStent(TM), a unique, proprietary coronary stent commercialized in January 1996, generated almost $900,000 in sales from European and South American markets. Significant sales penetration of AngioStent(TM) into the billion dollar stent market has continued into fiscal 1997.

"Our wholly-owned subsidiary, Enteric Products Inc., is also beginning to repay R & D expenditures that led to tests for the Helicobacter pylori ulcer-causing bacterium. We recently announced an agreement with Abbott Laboratories for international marketing of these tests. Many of the countries covered under this agreement have a very high incidence of H. pylori infection and thus would benefit from the availability of our test kits. EPI's sales have increased 47% for the quarter to $738,000 and 44% for the year to $2,417,000. In addition to direct sales of product, EPI also receives royalty income from licensing of its technology. On a pre-tax earnings basis, EPI was slightly profitable in fiscal 1996, an improvement in excess of $1 million from the prior year," said Martin.

For additional information on E-Z-EM, the world's largest manufacturer of contrast agents for gastrointestinal radiology, please contact Frank Kerrigon at 800/544-4624, ext. 325. -0-

            Financial Results of Fourth Quarter for E-Z-EM Inc.
                      (AMEX-EZMA AND EZMB)

                                  Fourth Quarter Ended
                           June 1,            June 3,   Increase (Dec.)
                            1996               1995     1996 vs. 1995
                          (13 Weeks)        (14 Weeks)

Income Statement Data

Net sales (3)           $25,378,000         $25,748,000         (1%)
Gross profit            $ 9,451,000 (1)     $11,013,000        (24%)
Gross profit as a
 percent of sales              37.2                42.8          --
Operating expenses      $ 9,229,000         $ 9,220,000          --
Operating
 profit                  $  222,000 (1)      $1,793,000        (88%)
Earnings from
 continuing operations
 before income taxes       $630,000          $1,987,000        (68%)
Earnings from continuing
 operations              $  442,000          $1,802,000        (75%)
Discontinued operation    ($ 99,000)          ($600,000)        84%
Net earnings             $  343,000          $1,202,000         71%
Earnings from
 continuing operations per
 common share
Primary                       $ .04                $.20        (80%)
Fully diluted                 $ .04                $.20        (80%)
Earnings per common share
Primary                       $ .03                $.13        (77%)
Fully diluted                 $ .03                $.13        (77%)
Weighted average common
 shares:
Primary                  10,008,640           9,082,566         --
Fully diluted            10,097,674           9,082,973         --

                                      Year Ended
                           June 1,            June 3,   Increase (Dec.)
                            1996               1995     1996 vs. 1995
                          (52 Weeks)        (53 Weeks)

Income Statement Data

Net sales (3)           $91,932,000         $88,526,000          4%
Gross profit            $36,414,000 (2)     $36,681,000         (1%)
Gross profit as a
 percent of sales              39.6                41.4          --
Operating expenses      $35,457,000         $33,844,000          5%
Operating
 profit                  $  957,000 (2)      $2,837,000        (66%)
Earnings from
 continuing operations
 before income taxes     $1,940,000          $3,559,000        (45%)
Earnings from continuing
 operations              $1,697,000          $2,473,000        (31%)
Discontinued operation  $19,311,000           ($843,000)        --
Net earnings            $21,008,000          $1,630,000       1189%
Earnings from
 continuing operations per
 common share
Primary                       $ .17                $.27        (37%)
Fully diluted                 $ .17                $.27        (37%)
Earnings per common share
Primary                       $2.16                $.18       1100%
Fully diluted                 $2.14                $.18       1089%
Weighted average common
 shares:
Primary                   9,723,626           9,087,678         --
Fully diluted             9,832,676           9,092,403         --

(1) Includes approximately $547,000 of unabsorbed overhead costs
associated with the previously announced relocation of a portion of
our core manufacturing operations.
(2) Includes approximately $2,479,000 of unabsorbed overhead costs
associated with the previously announced relocation of a portion of
our core manufacturing operations.
(3) Includes Angiodynamics division net sales of $3,654,000 and
$11,404,000 for the quarter and year ended June 1, 1996, and
$2,296,000 and $7,370,000 for the quarter and year ended
June 3, 1995.

CONTACT: E-Z-EM Inc.

Dennis J. Curtin, 800/544-4624, ext. 320