MediSense, Inc. Reports Third Quarter Results.

WALTHAM, Mass.--(BUSINESS WIRE)--Jan. 23, 1996--MediSense reported record financial results with strong growth in revenue, income from operations and net income in the third quarter of fiscal 1996 as compared to the third quarter of fiscal 1995.

For the third quarter of fiscal 1996 ended December 30, 1995 revenue increased 21% to $44,811,000 compared with $37,100,000 for the third quarter of fiscal 1995 ended December 31, 1994. Income from operations in the third quarter of fiscal 1996 increased 36% to $8,736,000 from $6,440,000 for the third quarter of fiscal 1995. The Company reported net income of $8,107,000 or $.43 per share, for the third quarter of fiscal 1996, compared to net income of $5,549,000 or $.31 per share, for the same period a year ago.

Third quarter revenue and income from operations were favorably impacted by approximately $1,281,000 and $884,000 respectively due to changes in foreign currency exchange rates.

MediSense is a worldwide developer, manufacturer and marketer of home blood glucose monitoring systems that enable people with diabetes to manage their disease more effectively. MediSense believes the convenience and simplicity of its products promote increased testing compliance by individuals with diabetes and provide for more effective management of their condition. -0-

                            MediSense, Inc.
                        CONSOLIDATED CONDENSED
                         STATEMENTS OF INCOME
                              (UNAUDITED)

                          Three Months Ended     Nine Months Ended
                           Dec. 30,  Dec. 31,    Dec. 30,  Dec. 31,
                            1995      1994        1995      1994
(In thousands, except per share data)

Revenue                   $44,811    $37,100     $129,684  $102,877
Cost of revenue            14,975     12,177       43,155    34,419
   Gross profit            29,836     24,923       86,529    68,458
Operating expenses:
        Selling, general
        and administrative 18,096     15,971       53,788    44,568
   Research and development 3,004      2,512        8,550     6,653
                           21,100     18,483       62,338    51,221
        Income from
         operations         8,736      6,440       24,191    17,237
Interest income (expense)     383         (2)       1,029    (1,222)
Foreign currency exchange
 gain (loss)                  (40)        14           67       949
   Income before provision
        for income taxes    9,079      6,452       25,287    16,964
Provision for income taxes    972        903        2,811     2,329
Net income                 $8,107     $5,549      $22,476   $14,635
Net income per common
 and common equivalent
 share                      $0.43      $0.31        $1.21     $0.93
Weighted average number of
   common and common equivalent
   shares outstanding      18,839     17,889       18,575    15,765

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                               MediSense, Inc.
                          CONSOLIDATED CONDENSED
                               BALANCE SHEETS
                                (UNAUDITED)

                                          Dec. 30,  March 31,
                                            1995      1995

(In thousands)
Assets
Current assets:
        Cash and marketable securities    $38,195   $25,991
        Trade accounts receivable - net    31,608    25,278
        Other receivables                     910       707
        Inventories                        17,077    14,758
        Other current assets                2,340     1,816
      Total current assets                 90,130    68,550
Property, plant, equipment and leaseholds,
   less accumulated depreciation and
   amortization                            17,943     13,094
Other assets                                2,202        364
                                         $110,275    $82,008

Liabilities and Stockholders Equity
Current liabilities:
   Current portion of long-term debt         $205       $540
   Accounts payable and accrued expenses   33,891     30,986
      Total current liabilities            34,096     31,526
Deferred income taxes                       1,942      1,223
Long-term debt, net of current portion        289        436
Stockholders equity                        73,948     48,823
                                         $110,275    $82,008

CONTACT: John Chiricotti

617-895-6007