GISH BIOMEDICAL REPORTS FOURTH QUARTER NET LOSS.

Gish Biomedical, Inc. (Nasdaq:GISH), Irvine, Calif., has announced financial results for the fourth quarter and year ended June 30, 1998. For the fourth quarter, the company reported a net loss of $1,569,000, or $0.46 per share, compared with a net loss of $1,825,000, or $0.54 per share for the same quarter last year. Net sales were $5,247,000, compared with $5,341,000 a year earlier. Gish noted that operating results for the 1998 fiscal fourth quarter reflected the impact of a non-recurring charge of $827,000 related to costs associated with the discontinuation of the company's EZ Flow infusion pump. The company is developing a new infusion pump and expects to seek market clearance from the Food and Drug Administration in the third quarter of fiscal 1999. Excluding the effects of charge, the company would have reported a net loss of $742,000, or $0.22 per share, for the most recent fourth quarter. For the full year, Gish reported a net loss of $2,022,000, or $0.59 per share, versus a net loss of $1,927,000, or $0.57 per share, a year ago. Net sales for the fiscal year were $20,283,000, compared with $21,127,000 in fiscal 1997. The company noted that the revenue decline for the year was primarily the result of a temporary lag in orders after the company ceased doing business with two major distributors. The company subsequently hired a seven person direct sales force and retained a substantial part of the total existing distributor business at higher margins. Selling and marketing expenses for the year increased 17% over fiscal 1997 due to the addition of the direct sales staff and increased costs associated with the launch of the company's Vision(tm) Oxygenator. Jack W. Brown, chairman and chief executive officer, said, "The conversion of our sales territories to direct sales representation afforded the company better marketing opportunities for our new Vision Oxygenator. "With a direct sales force, Gish will be able to sell the Vision Oxygenator in conjunction with custom tubing packs, cardioplegia systems, cardiotomy reservoirs and oxygen saturation monitors without limitation. We expect this product bundling to generate increased sales and greater margins going forward." Brown added, "Fiscal 1998 was a year of transition for Gish, and one where we have set the foundation to take advantage of several new areas of growth. Traditionally our business has been to provide operating room products for cardiovascular by-pass surgery. We now have completed the majority of our product offerings with the successful introduction of the Vision Oxygenator." "We anticipate that our base cardiovascular surgery products will provide a stable, growing revenue to finance our expansion into other innovative medical specialties, such as interventional radiology, infusion therapy, minimally invasive surgical procedures and orthopedics," Brown said. At June 30, 1998, the company had $3,497,000 in cash and cash equivalents, a current ratio of 9.1:1 and shareholder's equity of $17,343,000, representing a book value of $5.03 per share. Gish Biomedical designs and manufactures disposable physician-preference products for various surgical specialties. The company officer premier devices for use in cardiovascular and orthopedic surgery and oncology, in addition to its new line of ambulatory infusion pumps. For more information, call 800/938-0531.