ISOLYSER REPORTS SECOND QUARTER RESULTS.

NORCROSS, Ga.--(BUSINESS WIRE)--Aug. 3, 1995--Isolyser Company, Inc. (Nasdaq/NM:OREX) today reported results for the second quarter and six months ended June 30, 1995.

For the second quarter of 1995, net sales totaled $15.9 million, a 43% gain over the prior year's $11.1 million. Earnings for the quarter were $27,000, compared with a loss of $1.3 million, or $0.15 per share, for the second quarter of 1994. The second quarter of 1994 was adversely affected by a $614,000 loss on the sale of investments, for which there was no comparable item in 1995.

Net sales for the first six months of 1995 reached $28.0 million, up 31% over the comparable 1994 net sales of $21.4 million. Net loss was $118,000, or $0.01 per share, compared to a loss of $1.5 million, or $0.17 per share, a year ago.

Commenting on the Company's performance, Robert L. Taylor, president and chief executive officer of Isolyser, said, "We are pleased with the significant increase in sales in the second quarter, reflecting a growing interest in OREX(R) Degradables(TM), which will continue to be produced only in limited quantities through the third quarter of 1995. Even on this limited production basis, our operating loss for the second quarter improved significantly compared to the first quarter of 1995 and improved somewhat compared with second quarter operating results in 1994. We expect to begin seeing operating margin improvement in the fourth quarter of 1995 when internally produced OREX(R) products begin to be manufactured and sold in increasing quantities throughout the United States."

The Company recently announced approval in two more waste treatment districts to discharge wastewater from OREX(R) Degradables(TM) processors into the municipal sewer system. Specifically, the Company received approval to discharge OREX(R) Degradables(TM) wastewater into the sewer system in the Hampton Roads sanitation district which includes eight cities in coastal Virginia and into the City of Philadelphia sanitary sewer system. Also, the Company announced that its OREX(R) technology had been granted the distinguished listing as a "Designated Technology" by the Innovative Review Committee of the Texas Natural Resources and Conservation Commission ("TNRCC"), based on OREX(R) Degradables'(TM) ability to effectively reduce solid and infectious waste, reduce employee exposure to infectious materials, and the lack of pollutants associated with the products.

Mr. Taylor also said, "We believe that with the structure we now have in place, including manufacturing, marketing and product development, we are positioned to capitalize on the national introduction of our OREX(R) products. OREX(R) Degradables(TM) are a cost-effective solution to the enormous problems related to the healthcare industry's disposal of infectious waste. As we educate the healthcare industry to the application of our unique products, we believe that demand will increase substantially."

Recently, the Company announced that it had presented a paper to the Electric Power Research Institute's ("EPRI") Fourth Annual International Low-level Waste Conference & Exhibit Show '95, which focuses on advanced technologies, long-term storage issues and reducing low-level waste program costs. The paper presented the concept of volumetric waste reduction based upon utilization of ORE(R) Degradables(RM) product systems for the nuclear industry. Field trials of OREX(R) Degradables(TM) products are currently being performed to validate the viability of a program which would allow a nuclear facility to dispose of dry active waste ("DAW"), a by-product of maintenance and operation of the facility's process systems which contains radioactive material, at the location where it is generated and thereby reduce the costs associated with transportation, handling and storage of DAW. The Company expects field testing to be completed by the end of 1995 and commercial sales to begin during 1996.

Isolyser's expertise in polymer chemistry has enabled it to develop and manufacture OREX(R) Degradables(TM) products, a line of hospital and industrial products which the Company believes provide protection to the hospital staff, patient and environment while providing cost-effective solutions to the problems associated with waste reduction and disposal. These products can be dissolved after use, in hot water in a specially designed OREX(R) processor similar to a commercial washing machine, for safe disposal through municipal sewer systems. Isolyser believes it is the first company to address the healthcare industry's fundamental needs of patient care, safety, cost reduction and solid waste reduction by taking a life cycle approach, from initial product development through final disposal, to disposable products used in the hospital.

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                      ISOLYSER COMPANY, INC.
                  Unaudited Financial Highlights
             (In thousands, except for share amounts)

                              Three Months Ended  Six Months Ended
                                    June 30,          June 30,
                                 1995     1994     1995     1994
Net sales                      $ 15,886 $ 11,069 $ 28,041 $ 21,364
Income (loss) from operations      (596)    (796)  (1,799)  (1,205)
Net income (loss)                    27   (1,307)    (118)  (1,488)
Net income (loss) per share        -       (0.15)   (0.01)   (0.17)
Weighted shares outstanding      12,879    8,662   12,557    8,657

CONTACT: Isolyser Co. Inc., Norcross

C. Fred Harlow, 404/381-7566