VALLEY FORGE REPORTS GAINS IN 4TH QTR/YEAR-END RESULTS.

Valley Forge Scientific Corp. (NASDAQ: VLFG; BSE: VLF), Oaks, Pa., which develops and manufactures medical device products for hospital and healthcare markets worldwide, today reported results for the fiscal fourth quarter and year ended Sept. 30, 2001.

Net sales for fiscal 2001 were $5,263,485, up 20% from net sales of $4,397,939 for the prior year. The company reported net income for the year of $330,221, or four cents per basic and diluted common share, compared to a net loss of $54,312, or one cent per basic and diluted share for fiscal 2000.

Net sales for the fourth quarter of fiscal 2001 rose to $1,391,933 from net sales of $1,319,678 for the fourth quarter of fiscal 2000. The company reported net income for the quarter of $73,287, or one cent per basic and diluted common share, up from net income of $26,546, or less than one cent per basic and diluted share, for the corresponding quarter last year.

Jerry Malis, president and CEO of Valley Forge Scientific, said, "These results continue the upward momentum we are enjoying in our sales and earnings, highlighted by a sixth consecutive profitable quarter. Our full year revenues approximated our previously announced target of $5.3 million.

"In 2001, our Bident(R) bipolar dental generator and disposable instrumentation became a more significant contributor to our sales and earnings growth. We anticipate growth in the sales of our Bident(R) system to continue as our distributor, Bident International, L.L.C., continues to penetrate the expansive dental market. We are pleased with the growth of the sales of our neurosurgery bipolar system to Codman & Shurtleff in 2001, and anticipate this trend will continue in 2002.

"We continue to aggressively proceed in the development of additional products based on our patented DualWave(TM) technology. Building upon our success in neurosurgery and the dental market, we look to expand into other surgical markets including, general surgery, tumor ablation outside of the central nervous system, laparoscopic surgery, gynecology, urology, dermatology, maxillofacial surgery, ENT, minimally invasive surgery including movement disorders and chronic pain control," Malis concluded.

Valley Forge Scientific designs, develops, manufactures and sells medical devices. The company has established itself as a leading developer & manufacturer of bipolar electrosurgical generators and related instrumentation, based on its patented DualWave(TM) technology. The electrosurgical systems are marketed through national and international distributors.

For more information, call 610/666-7500.