Research Industries receives FDA authorization to market Biofilter hemoconcentrator, Plans second quarter launch.

Industries Corporation (NASDAQ/NMS:REIC) Monday announced that it has been authorized by the U.S. Food & Drug Administration (FDA) to market its new cardiovascular hemoconcentrator, Biofilter(TM).

The Company expects to market the Biofilter(TM) in the second half of next quarter. Research Industries anticipates a significant contribution to sales and earnings in the second half of this fiscal year, as much of its distribution network has, until recently, sold competitive hemoconcentrators in the cardiovascular marketplace.

Hemoconcentrators are an increasingly common element of the open-heart surgery bypass circuit, which provides life support for bypass patients. The purpose of the device, a hollow-fiber filter, is to separate excess fluids from the patient's blood during the procedure which have accumulated due to the introduction of cardioplegia solutions as well as bypass circuit priming and intravenous solutions.

If the build-up of such solutions is not reversed, it can cause fluid overload in the cardiovascular system, resulting in post-operative heart muscle stress. "As Research Industries is a world leader in specialized cardioplegia catheters and nutrient solutions that protect the heart muscle during surgery, the Biofilter(TM) is a logical extension of the company's proprietary cardiovascular product line," said Gary L. Crocker, president and chief executive officer.

The device will be initially introduced into the U.S. market, and during the second half of the fiscal year will be rolled out internationally on a country-by-country basis as market approvals are received. The Biofilter(TM), which will sell for about $95, addresses a potential worldwide market of approximately 700,000 bypass and valve replacement surgeries. Currently, hemoconcentrators are used in about 50 percent of bypass and valve replacement surgeries in the U.S., with international market penetration varying by country.

"The Biofilter(TM) product complements our long-term strategy of targeting highly specialized surgical niches with few focused competitors," added Crocker, "and the primary decision makers for the hemoconcentrator purchase are the same cardiovascular surgeons who currently utilize our broad lines of cardioplegia devices, solutions and specialty bypass blood transport cannulae. Thus, we are in an excellent position to penetrate a significant share of this important cardiac niche opportunity."

The new Biofilter(TM) is fabricated using a proprietary manufacturing process which leaves no residual chemicals that could be flushed into the body with blood, thereby offering a significant competitive advantage to existing hemoconcentrators. The company also noted that its plans include incorporating the hemoconcentrator capability with its heparin removal technology, resulting in a new product that would simultaneously remove both excess fluids and heparin post-operatively. REIC recently initiated human testing in Europe utilizing its heparin removal device.

"This new hemoconcentrator line not only represents an immediate revenue growth opportunity but also strategically complements our emerging line of heparin removal devices," said Crocker.

Research Industries recently reported its fiscal 1995 revenues and earnings. Health care revenues grew by 28 percent to $28.637 million, or $.81 per share, led by sales of the company's disposable surgical devices, which grew by 31 percent.

Research Industries is a diversified biomedical firm specializing in the development, manufacture and sale of hospital disposable products primarily for cardiovascular and vascular surgery, as well as specialty pharmaceuticals.

CONTACT: Research Industries Corporation, Salt Lake City

Nancy E. Schultz, 801/562-0200