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ORTHOMET SALES UP 40 PERCENT FOR FISCAL YEAR

 MINNEAPOLIS, Aug. 10 /PRNewswire/ -- Orthomet, Inc. (NASDAQ: OMET) reported record sales and earnings for its fiscal year ended June 30, 1993. Sales increased 40 percent to $22,086,000 from $15,762,000 in the prior fiscal year. Net earnings for the fiscal year were $2,115,000 and earnings per share were $.44, compared with a net loss of $1,830,000 or $.46 per share the year before.
 Net earnings for fiscal 1993 included a gain of $748,000 or $.15 per share from the sale of an investment in a development stage company in the first quarter.
 Sales for the fourth quarter were $6,168,000, up 42 percent from $4,340,000 in the same period a year ago. Net earnings for the quarter were $540,000 and earnings per share were $.11, compared with a net loss of $408,000 or $.09 per share in the fourth quarter a year ago.
 Richard D. Nikolaev, Orthomet's chairman and chief executive officer, said, "The U.S. market for orthopaedic reconstructive products is growing at about 10 percent annually, and we have stated that the goal for Orthomet is to grow twice as fast and be profitable doing so. The company surpassed its sales goal in the 1993 fiscal year, thanks to strengthening our sales network in the U.S. and progress in international markets, particularly Japan. Our operations produced profits in all four quarters as our gross profit margin improved more than eight percentage points year-to-year and expenses stayed under managed control. We believe that the progress we have made in fiscal 1993 will continue in fiscal 1994.
 "We are determined to build on our momentum," Nikolaev continued, "by fine tuning and strengthening our sales dealer network, continuing to control costs and by bringing new products to the market. We have more than a dozen 510(k) applications under review by the FDA right now, and will continue to invest aggressively in product line expansion, enhancement and new technologies."
 Orthomet, Inc. designs, manufactures and markets selected orthopaedic reconstructive implant products and related surgical instrumentation.
 ORTHOMET, INC. STATEMENTS OF OPERATIONS
 Three Months Ended Twelve Months Ended
 6/30/93 6/30/92 6/30/93 6/30/92
Net sales $6,168,000 $4,340,000 $22,086,000 $15,762,000
Cost of sales 2,287,000 1,892,000 8,542,000 7,389,000
Gross profit 3,881,000 2,448,000 13,544,000 8,373,000


Operating expenses (income): Sales and
 marketing 1,638,000 1,336,000 6,128,000 4,708,000 General and
 administrative 1,012,000 922,000 3,647,000 3,296,000 Research and
 development 606,000 441,000 2,204,000 1,573,000 Provision for
 officer severance -- -- -- 210,000 Other operating
 (income) expense 36,000 (22,000) 6,000 (90,000)
 -- 3,292,000 2,677,000 11,985,000 9,697,000


Operating earnings
 (loss) 589,000 (229,000) 1,559,000 (1,324,000)


Non-operating income (expense) Interest and
 financing expense (73,000) (57,000) (294,000) (371,000)
 Interest income 56,000 38,000 186,000 115,000
 Other 2,000 (130,000) 819,000 (130,000)


Earnings (loss)
 before income
 taxes 574,000 (378,000) 2,270,000 (1,710,000)
Income taxes 15,000 -- 46,000 --


Net earnings
 (loss) 559,000 (378,000) 2,224,000 (1,710,000)
Less preferred stock cash dividends 19,000 30,000 109,000
 120,000
Net earnings (loss) applicable to common stock $540,000 $(408,000)
 $2,115,000 (1,830,000)
Earnings (loss) per common share $0.11 $(0.09) $0.44
 $(0.46)


Weighted average number of common shares and common share equivalents
 outstanding 4,969,393 4,329,094 4,827,674 4,020,445
 ORTHOMET, INC. BALANCE SHEETS
 6/30/93 6/30/92


Assets Current assets:
 Cash and cash equivalents $5,607,000 $2,768,000
 Marketable securities 1,410,000 250,000
 Accounts receivable (net) 3,536,000 3,521,000


Employee and
 distribution advances 203,000 131,000
 Inventories (net) 6,955,000 5,824,000


Prepaid expenses and
 other assets 221,000 411,000
 Total current assets 17,932,000 12,905,000
Property and equipment (net) 2,904,000 3,454,000


Other assets:
 Product samples 217,000 68,000
 Computer software (net) 199,000 180,000
 Other assets 127,000 47,000
 Total other assets 543,000 295,000
 Total assets $21,379,000 $16,654,000


Liabilities and Shareholders' Equity Current liabilities:
 Accounts payable $1,953,000 $1,161,000
 Employee compensation 919,000 485,000


Other liabilities and
 accrued expenses 848,000 613,000
 Accrued severance costs -- 112,000
 Accrued rework costs -- 81,000


Current portion of
 lease obligation 407,000 286,000
 Total current liabilities 4,127,000 $2,738,000
Lease obligations 830,000 845,000
Redeemable convertible preferred stock 1,272,000
 2,000,000


Shareholders' equity:
 Common stock 466,000 435,000
 Additional paid-in capital 17,231,000 15,298,000
 Retained earnings (deficit) (2,547,000) (4,662,000)
 Total shareholders' equity 15,150,000 11,071,000
 Total liabilities and
 shareholders' equity $21,379,000 $16,654,000
 -0- 8/10/93
 /CONTACT: James L. Suel, treasurer of Orthomet, 612-944-6112/
 (OMET)


CO: Orthomet, Inc. ST: Minnesota IN: MTC SU: ERN

TJ -- MN014 -- 1406 08/10/93 17:49 EDT
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Date:Aug 10, 1993
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