Gargiulo Group Upgrades PolyMedica Industries to a BUY.

NEW YORK--(BUSINESS WIRE)--June 26, 1997--The Gargiulo Group, a division of Oscar Gruss & Son Incorporated, has upgraded their recommendation on PolyMedica Industries, Inc., Woburn, Massachusetts, from a hold to a BUY. (AMEX: PM).

PolyMedica Industries is a leading provider of diabetic supplies, consumer healthcare and professional healthcare products. In June 1996, PolyMedica began a restructuring process, spinning out its biomaterials research and development business into CardioTech International, Inc. (AMEX: CTE). In September 1996 it acquired a high growth diabetic supplies business, which has become the engine of growth. The newly acquired diabetic care supply business is the largest mail order supply-house of insulin and with rapid projected revenue growth appears to be a solid investment vehicle for PolyMedica.

Gene Gargiulo, Senior Managing Director of The Gargiulo Group, believes the restructuring significantly changed PolyMedica's fundamentals and expects it to result in earnings acceleration. Strong quarterly EPS comparisons are projected.

Mr. Gargiulo believes the stock is undervalued. He gives details of PolyMedica Industries' strategy, products, markets, management and valuation models in a 15-page report which can be obtained from the Gargiulo Group at [phone].

Investment Ratings: STRONG BUY: expected total annual return of greater than 25% over the next 12-18 months; BUY: expected total annual return in the range of 15-25% over the next 12-18 months; HOLD: stock is fairly valued and should provide returns which approximate returns expected from the broad market over the next 12- 18 months; UNATTRACTIVE: stock is overvalued based on current and projected E.P.S., cash flow and dividend rate, and should underperform the broad market and the company's peer group over the next 12-18 months; SELL: stock is significantly overvalued based on current and projected E.P.S., cash flow and dividend rate, and should materially underperform the broad market and the company's peer group over the next 12-18 months. Other factors considered in the Investment Rating include the company's risk profile, including earnings predictability, financial position, industry position, technology risk, product risk, and other factors. The required annual return for a specific investment rating will be increased for stocks with greater financial, business, and/or earnings risk.

This report is based upon information which the Gargiulo Group, a divisions of Oscar Gruss & Son Incorporated believes to be reliable. However, neither we nor any individual acting on our behalf can guarantee the accuracy or completeness of its contents. It does not purport to contain a complete analysis of every material fact concerning any company, industry or security. We assume that it will be read in conjunction with other available reports and data. Opinions expressed herein are subject to change without notice. No investor can assume that reliance on the views, opinions or recommendations contained herein will produce profitable results. We and/or our employees and affiliates may have positions in securities which are referred to herein and may make purchases or sales thereof while this report is in circulation. Further information is available upon request. Foreign-currency-denominated securities are subject to fluctuations in currency exchange rates that could have a positive or adverse effect on an investor's return upon the conversion into local currency of dividends or interest received, or proceeds from the sale of such securities. In addition, the value of U.S. dollar-denominated ADRs and the value of U.S. dollar-denominated ordinary shares, or common shares, of foreign issuers can be influenced by fluctuations in currency exchange rates.

CONTACT: Gargiulo Group, New York 

Gene Gargiulo, 212/952-1220