Medical Sterilization, Inc. Announces 18 Percent Increase in Third Quarter Revenues.

SYOSSET, N.Y.--(BUSINESS WIRE)--Oct. 31, 1997--Medical Sterilization, Inc. (MSI) (OTC/BB:MSTI) announced today its results for the quarter ended Sept. 30, 1997. The company reported revenues of $2,516,069 for the quarter ended Sept. 30, 1997 compared to revenues of $2,132,389 for the quarter ended Sept. 30, 1996, an increase of 18% from quarter to quarter.

The company reported net income of $166,314 or $.03 per share for the quarter ended Sept. 30, 1997 compared to a net loss of ($281,911) or ($.09) per share for the quarter ended Sept. 30, 1996.

The company reported revenues of $7,248,963 for the nine months ended Sept. 30, 1997 compared to revenues of $6,346,668 for the nine months ended Sept. 30, 1996, an increase of 14% over the prior year.

The company reported net income of $307,993 or $.06 per share for the nine months ended Sept. 30, 1997 compared to a net loss of ($387,217) or ($.13) per share for the nine months ended Sept. 30, 1996. -0-

    The tables below reflect the results of operations for the
period presented:
                                   Three Months Ended
                            Sept. 30, 1997       Sept. 30, 1996


Revenues                      $2,516,069         $2,132,389
Net income (loss)                166,314           (281,911)
Net income (loss) per share         0.03              (0.09)
Weighted Average Shares
of Common Stock Outstanding    5,439,300          3,005,496(a)


                                    Nine  Months Ended
                            Sept. 30, 1997       Sept. 30, 1996


Revenues                      $7,248,963         $6,346,668
Net income (loss)                307,993           (387,217)
Net income (loss) per share         0.06              (0.13)
Weighted Average Shares
of Common Stock Outstanding    5,534,285          3,005,496(a)

(a) Common stock equivalents have been excluded from the computation
of net income per share of common stock for both the three months and
nine months ended Sept. 30, 1996, since the result would be
anti-dilutive.

    According to D. Michael Deignan, MSI's President and Chief
Executive Officer, "The increase in revenues for the three months
ended Sept. 30, 1997 was primarily attributable to an increase in
the company's Hospital Services division of approximately $328,000
or 27.4%. Operating margins increased, as a result of volume and
improved control of operating and SGA expenses.  Because of a large
backlog of new Hospital business contracts yet to be implemented,
the company expects to sustain double digit revenue increases."
    MSI provides cost management services to healthcare providers,
principally individual hospitals, integrated hospital networks, and
surgicenters.  By outsourcing sterilization of surgical instruments,
providers minimize capital investment, improve space utilization,
reduce environmental risk and regulation, and otherwise reduce costs,
allowing management thereby to focus on optimizing patient care and
maximizing operating room revenues, which are typically the most
profitable segment of hospital income.
    Historically focused in the New York market, MSI's current
client base consists of over thirty hospitals, including North
Shore Health System, Columbia Presbyterian Medical Center,
Maimonides Medical Center, Episcopal Health Services, SUNY
Downstate, and Winthrop University Hospital.  MSI also recently
signed a five year contract with the Newark, N.J.-based Cathedral
Healthcare System and a contract with Pennsylvania Hospital in
Philadelphia.
    MSI's concept is being expanded into principal U.S. and Canadian
markets by a recently organized joint venture with NYSE listed
Teleflex, Inc. (TFX).  Teleflex, Inc, will own 62.5% of the common
shares of the joint venture company, SSI Surgical Services, Inc.
(SSI), and MSI will own the remaining 37.5%.  MSI will contribute
personnel and know-how, including its proprietary, multi-hospital
tracking system and a developing customer list in several U.S.
cities.  Teleflex, Inc. will provide the initial operating and
project capital required to fund expansion into markets as SSI
contracts are executed.  Another Teleflex, Inc. subsidiary, Endoscopy
Specialists, Inc. (ESI), which owns and manages endoscopic and
specialized instrumentation and provides on-site processing
services, will also contribute its know-how to the joint venture.
    SSI will provide a total instrument management solution to
individual hospitals and hospital networks which are seeking ways to
enhance the quality of patient care while lowering overall operating
costs.
    In September 1997, SSI signed and commenced implementation of
its first multi-year onsite contract to provide management and
sterile processing services to a large mid-Atlantic hospital.  When
fully implemented, the aggregate value of this contract will be
several million dollars.
    As previously announced on April 3, 1997 the company's other
division, the E-Beam Accelerator which irradiates both medical
devices and industrial products, will continue to operate through
Dec. 31, 1997.  Commencing January of 1998, this division will begin
phaseout ending in April 1998.  The company has entered into
contracts to sell both the E-Beam assets and the rights to its
E-Beam irradiation processing customer list.  The result of these
transactions will allow not only more focus on the company's
Hospital business, but also be a source of significant liquidity and
balance sheet improvement, beginning in the second quarter of 1998.
    Additional information about Teleflex, Inc. can be obtained from
the company's Web site on the Internet at http://www.teleflex.com
    Additional information about MSI can be obtained from the
company's Web site on the internet at http://www.medst.com
-0-

This press release contains statements concerning certain trends and other forward-looking information affecting or relating to the company and its industry that are intended to qualify for the protections afforded "forward-looking statements" under the Private Securities Litigations Reform Act of 1995. There are many important factors that could cause actual results to differ materially from those in the forward-looking statements. Many of these important factors are outside MEDICAL STERILIZATION, INC.'s control. Changes in market conditions, including competitive factors and changes in government regulations, could cause actual results to differ materially from the company's expectations. No assurance can be provided as to any future financial results.

CONTACT: D. Michael Deignan

President and CEO

516/496-8822

fax [phone]

email: [e-mail]