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MEDICAL TECHNOLOGY SYSTEMS ANNOUNCES 30TH CONSECUTIVE QUARTER OF NET SALES AND EARNINGS GROWTH

 MEDICAL TECHNOLOGY SYSTEMS ANNOUNCES 30TH CONSECUTIVE QUARTER
 OF NET SALES AND EARNINGS GROWTH
 CLEARWATER, Fla., Nov. 13 /PRNewswire/ -- Medical Technology Systems, Inc. (NASDAQ-NMS: MSYS) reported that for the second quarter ended Sept. 30, 1992, net income increased 79 percent to $513,000 equal to $0.14 per share on 12 percent more shares outstanding. Net sales and services increased 209 percent to $4.3 million.
 Harold B. Siegel, president and CEO, said that this was the company's 30th consecutive quarter of growth. For the six months ended Sept. 30, 1992, net income increased 80 percent to $1.0 million equal to $0.28 per share on 28 percent more shares. Net sales and services increased 160 percent to $7.3 million. Average common shares outstanding increased due to a July 1991 offering, which raised $5 million to pay off debt and fuel the company's growth plans, and the subsequent exercise of warrants.
 During the second quarter, the company continued to broaden sales to its customers and the long term care industry. Net sales and services included a 33 percent increase in the MTS Systems medication card business, to $1.8 million; $902,000 from MTS Laboratories (acquired during the third quarter of fiscal 1992); and $1.5 million from the Vangard Laboratories pharmaceutical packaging operation (acquired June 1, 1992 during the first quarter).
 MTS Systems growth reflects continued industry acceptance of the company's proprietary products. Operating margins improved to 41 percent compared to 36 percent in the year-ago quarter due to a change in the revenue mix toward increased medication card sales versus equipment sales. Operating margins at MTS Laboratories declined from the first quarter as the company continued to invest in new technology and marketing to expand operations and capacity for the nursing home market. Vangard operating margins were slightly impacted by remaining expenses associated with acquiring and consolidating the operation. Selling, general and administrative expenses, depreciation and amortization, and interest expense increased due to the acquisitions.
 Mr. Siegel said growth trends should continue during the second half as the company implements product and service offerings to expand Vangard and MTS Laboratories operations for fiscal 1994.
 To that end, this week at the American Society of Consulting Pharmacists' convention in Orlando, Fla., Medical Technology began showing its Rotopak 1500, which can automatically fill and seal standard or customized medication cards at the rate of 12-25 per minute. By comparison, Medical Technology's semi-automatic MTS 300 produces 2-4 medication cards per minute. Medical Technology plans to install Rotopak 1500 technology at Vangard to expand operations by providing its pharmacy customers with medication cards that are pre-filled with generic pharmaceuticals. Pre-filled cards produced at this rate would provide nursing home and other healthcare pharmacies with significant cost savings and productivity gains.
 Medical Technology Systems, Inc. (NASDAQ-NMS: MSYS) of Clearwater, Fla. is the nation's largest supplier of medication card packaging equipment, supplies and systems. Medication cards are more efficient and economical for nursing homes, hospitals and other healthcare facilities to package, administer and monitor patient medication.
 MEDICAL TECHNOLOGY SYSTEMS, INC. AND SUBSIDIARIES
 Consolidated Statements of Operations
 (Unaudited, In Thousands Except Share and Per Share Amounts)
 Period ended Quarter Six Months
 Sept. 30 1992 1991 1992 1991
 Net sales and services $4,247 $1,373 $7,299 $2,807
 Cost of sales and
 services 2,502 719 4,143 1,469
 Gross profit 1,745 654 3,156 1,338
 Operating expenses:
 SG&A 591 114 910 197
 Depreciation &
 amortization 215 83 393 159
 Interest, net 113 22 196 116
 Total operating expenses 918 218 1,499 472
 Income before income taxes 827 436 1,657 866
 Income taxes 314 150 630 296
 Net income $513 $286 $1,027 $570
 Per common share primary $0.14 $0.08 $0.28 $0.20
 Average common shares
 outstanding; primary 3,775,529 3,374,288 3,720,602 2,896,242
 Segment information:
 Revenue:
 MTS Systems $1,823 $1,373 $3,422 $2,807
 MTS Laboratories 902 0 1,809 0
 Vangard Laboratories 1,522 0 2,068 0
 Total revenue 4,247 1,373 7,299 2,807
 Operating profit:
 MTS Systems 740 500 1,395 1,107
 MTS Laboratories 268 0 691 0
 Vangard Laboratories 194 0 348 0
 Total operating profit 1,202 500 2,434 1,107
 General corp. expenses 262 42 580 125
 Interest expense, net 113 22 197 116
 Income before income taxes 827 436 1,657 866
 Depreciation & amortization:
 MTS Systems 149 83 274 159
 MTS Laboratories 62 0 115 0
 Vangard Laboratories 4 0 4 0
 Total depreciation &
 amortization 215 83 393 159
 -0- 11/13/92
 /CONTACT: Harold B. Siegel, president & CEO of Medical Technology Systems, 800-334-6663, or 813-576-6311, or Gary Fishman of The Hudson Stone Group, 212-983-8550, for Medical Technology Systems/
 (MSYS) CO: Medical Technology Systems ST: Florida IN: HEA SU: ERN


TS -- NY009 -- 0556 11/13/92 09:22 EST
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