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AORTECH REPORTS FIRST QUARTER RESULTS

 AORTECH REPORTS FIRST QUARTER RESULTS
 MINNEAPOLIS, July 27 /PRNewswire/ -- AorTech, Inc. (NASDAQ: AORT)


reported today the results of its first quarter. For the quarter ended June 30, 1992, net sales were $442,000 compared to $1,170,000 during the comparable quarter last year. Net sales during the first quarter this year include only the sales of AorTech's medical device operations, in contrast to the additional sales derived from the company's divested A-1 Engineering operations in the same quarter last year. Net first quarter sales from medical devices one year ago were $737,000 which included initial stocking orders from distributors.
 AorTech posted a first quarter net loss of $602,000, or $.11 per share, which reflected a one-time employee severance charge of $83,000.
 The quarterly loss one year ago was $236,000, or $.04 per share. Expense cuts were initiated in June 1992, including the elimination of 11 production and administrative positions. Product inventory was reduced by approximately $200,000 during the first quarter.
 Robert J. Keyport, AorTech's chief executive officer since June 1992, stated, "Net sales of heart valves during the first quarter has increased more than 60 percent over the average heart valve sales during the previous three quarters. We expect that sales will continue to improve through out the balance of the fiscal year and into next year and that corresponding decreases in inventory will continue. The positive effect of expense reductions initiated at the end of the first quarter will start showing up in the second quarter." He added, "AorTech faces both short-term challenges and exciting long-term opportunities, and has all the necessary qualities for growth, profitability and success."
 AorTech's operating performance in fiscal 1992 resulted in a management realignment and subsequent action to reduce operating expenses. These steps were part of a plan established by the board of directors which was intended to increase sales, improve working capital and generate profitability on operations. The company manufactures and markets medical devices to the overseas cardiovascular market.
 CONDENSED STATEMENTS OF OPERATIONS
 FOR THE FIRST QUARTER ENDED JUNE 30, 1992 AND 1991
 1992 1991
 Net sales $442,000 $1,170,000
 Cost of goods sold 360,000 632,000
 Gross margin 82,000 538,000
 Operating expenses 692,000 727,000
 Loss from operations (610,000) (189,000)
 Other income (expenses) - net 8,000 22,000
 -- (602,000) (167,000)
 Income taxes -- 69,000
 Net loss $(602,000) $(236,000)
 Net loss per common share $(.11) $(.04)
 CONSOLIDATED BALANCE SHEETS
 June 30 March 31
 1992 1992
 Assets
 Current Assets
 Cash and cash equivalents $348,000 $747,000
 Accounts receivable - net 638,000 661,000
 Inventories 2,554,000 2,741,000
 Other current assets 130,000 162,000
 Total current assets 3,670,000 4,311,000
 Property and equipment - net 470,000 492,000
 Other assets 110,000 121,000
 -- $4,250,000 $4,924,000
 Liabilities and Shareholders' Equity
 Current liabilities $488,000 $580,000
 Long-term debt 29,000 32,000
 Shareholders' equity 3,733,000 4,312,000
 -- $4,250,000 $4,924,000
 -0- 7/27/92
 /CONTACT: Robert J. Keyport of AorTech, 612-481-1218; or Tom de Petra of de Petra & Associates, 612-338-7630, for AorTech/
 (AORT) CO: AorTech, Inc. ST: Minnesota IN: MTC SU: ERN


AL -- MN012 -- 3556 07/27/92 13:22 EDT
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Date:Jul 27, 1992
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