Trinity Biotech Announces Record Third Quarter and Nine Month Results; 108% Increase in Net Profits and 59% Rise in EPS for Nine Month Period.

DUBLIN, Ireland--(BW HealthWire)--Nov. 4, 1998--Trinity Biotech plc (NASDAQ:TRIBY) today announced record results for the three and nine months ended September 30, 1998.

Revenues rose 38% to US$16,868,884 for the nine months ended September 30, 1998 compared to US$12,245,226 for the same period last year. Net profit was up 108% to US$1,710,890 or US$.07 per share compared to US$821,044 or US$.044 per share for the comparable period last year, representing 59% earnings per share growth.

Revenues grew 16% to US$5,833,164 for the three months ended September 30, 1998 compared to US$5,024,363 for the same period last year. Net profit rose 101% to US$706,854 or US$.028 per share for the quarter ended September 30, 1998 compared to US$350,904 or US$.0186 per share for the same period last year, representing 51% earnings per share growth.

Jonathan O'Connell, chief financial officer of Trinity Biotech, said, "This is the seventh consecutive quarter that Trinity has reported an increase of over 100% in its net profit compared to the same quarter last year. The net profit for the three months ended September 30, 1998 reflects both the increase in revenues arising from indigenous growth and the reduction in Trinity's overhead base following successful closure of the UK subsidiary, Centocor UK Holdings Limited. The acquisitions made during the quarter have had little impact on profitability to date but have affected the balance sheet considerably.

"Inventories have increased from US$3,663,036 at December 31, 1997 to US$11,604,214 at September 30, 1998, reflecting inventory acquired through several recent acquisitions particularly the Microtrak inventory of approximately US$5 million," continued O'Connell. "The acquisitions have given rise to a significant goodwill charge of US$12,700,000, which has been capitalised in intangibles and will be amortised in line with Irish and U.S. accounting principals. As a result of the acquisitions, long-term liabilities have increased from US$8.7 million to US$18.3 million reflecting deferred payments due on the acquisitions and increased bank debt. As of September 30, 1998, the Company had cash and cash equivalents of US$3,092,775 and total assets of US$44,145,221. Short-term investments have decreased due to the sale of the Selfcare shares as consideration for the acquisition of the Cambridge business."

Ronan O'Caoimh, chief executive officer at Trinity, commented, "During the quarter Trinity disposed of the U.S. OTC pregnancy business, which had been generating annual revenues of approximately US$6 million over the past number of years. The business was static and very low margin given that Trinity was not the manufacturer. The consideration was US$3 million.

"In addition, during the quarter Trinity filed legal proceedings relating to an infringement of our intellectual property rights," O'Caoimh added. "As a result of the sale of the U.S. OTC pregnancy business, Trinity has transferred its interest in the case to the purchaser of the business."

During the quarter the Company made four product line acquisitions:

-- MICROTRAK - the world Gold Standard Clamydia EIA test (FDA-cleared) - Revenues US$7 million

-- SELFCARE HIV BUSINESS -HIV rapid EIA tests - Revenues US$3.2 million

-- MICROZYME - FDA-cleared range of EIA hormone and drugs of abuse tests - Revenues US$1.6 million

-- LIPOPROTEIN (a) - the only FDA-cleared Lp(a) test for predictive use relating to coronary heart disease - Revenues US$1 million

In each case Trinity has purchased the product lines but not the overhead attaching to the business. Production of Microtrak, Selfcare, and Lipoprotein is transferring to Dublin with Microzyme production moving to Jamestown, New York. The transfer into existing facilities of these four businesses gives rise to significant manufacturing efficiencies and in turn to excellent profit contribution. The Company has secured services of a small number of key marketing and production personnel from these businesses.

"The purchase consideration for these businesses was approximately US$17 million, financed through a mixture of cash payments, deferred considerations, bank borrowing, the retirement of Selfcare stock, and the proceeds from the sale of the OTC pregnancy business. The acquisitions have been financed without the issuance of shares and without recourse to floating convertible instruments. The transactions will give rise to increased profitability and significant earnings per share growth. Following the completion of the five transactions the Company has US$3 million cash on hand, and has a schedule of deferred payments over the next two years which will be met from operating cash flows," O'Caoimh also stated.

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                         Trinity Biotech plc
                 Consolidated Statement of Operations

                     Three Months Ended         Nine Months Ended
                        September 30,             September 30,

                      1998         1997         1998         1997
                       US$          US$          US$          US$
                   (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)

Revenues            5,833,164    5,024,363    16,868,884   12,245,226
Costs and expenses
Cost of goods sold (3,852,011)  (3,389,978)  (11,229,808)  (8,425,896)
Research and
 development         (588,050)    (551,243)   (1,861,539)  (1,245,139)
Administrative
 expenses            (614,513)    (857,837)   (1,899,707)  (2,093,903)
Other operating
 income                  --        150,215          --        345,440

Operating profit      778,590      375,520     1,877,830      825,728
Interest and other
 income                39,634       13,801        93,142      131,423
Interest expense     (111,370)     (38,417)     (260,082)    (136,107)

Net profit            706,854      350,904     1,710,890      821,044

Net profit per
 ordinary share         0.028       0.0186          0.07        0.044

Weighted average
 number of
 ordinary shares
 outstanding       25,173,456   18,839,905    24,599,255   18,474,984


                         Trinity Biotech plc
                      Consolidated Balance Sheet


                                      Sept. 30, 1998  Dec. 31, 1997
                                            US$           US$
                                       (Unaudited)
ASSETS

Cash and cash equivalents               3,092,775      2,827,251
Short term investments                     79,002      1,447,643
Accounts receivable and prepayments     6,684,515      7,899,177
Inventories                            11,604,214      3,663,036

Total current assets                   21,460,506     15,837,107

Property plant & equipment, net         7,918,553      5,800,169
Intangible assets, net                 14,166,162        375,168
Financial assets                          600,000      2,587,257

TOTAL ASSETS                           44,145,221     24,599,701

LIABILITIES & SHAREHOLDERS' EQUITY

Accounts payable & accrued expenses    11,529,144      8,767,479

Long term liabilities                  18,279,801      8,727,511

SHAREHOLDERS' EQUITY

Called up share capital
  Class 'A' ordinary shares               332,830        315,567
  Class 'B' ordinary shares                 9,660          9,954
Share premium account                  36,743,069     35,055,338
Currency adjustment                       866,872        (63,125)
Retained deficit                       (4,360,611)    (5,937,107)
Goodwill reserve                       19,255,544)   (22,275,916)

TOTAL LIABILITIES &
SHAREHOLDERS' EQUITY                   44,145,221     24,599,701

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Trinity Biotech develops, manufactures, and markets over 100 diagnostic products for the point-of-care (POC), self-testing (OTC), and clinical laboratory segments of the diagnostic market. Trinity sells worldwide in over 75 countries through 130 international distributors and strategic partners.

Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including but not limited to, the results of research and development efforts, the effect of regulation by the United States Food and Drug Administration and other agencies, the impact of competitive products, product development commercialization and technological difficulties, and other risks detailed in the Company's periodic reports filed with the Securities and Exchange Commission.