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INFRASONICS ANTICIPATES LOWER YEAR-END EARNINGS BECAUSE OF FOURTH-QUARTER LOSS

 SAN DIEGO, June 17 /PRNewswire/ -- Infrasonics Inc. (NASDAQ: IFRA) today announced that earnings for the year ending June 30, 1993, will be lower than expected because of an operating loss during the fourth quarter. Although revenues for the fourth quarter are expected to exceed the company's previous record of $4.7 million, the increase will be less than expected, based on prior-year trends. and will not be enough to offset substantially increased expenses incurred in the fourth quarter. The increased expenses reflect actions taken by the company to respond to greater regulatory compliance activities and reconfiguration of certain of the company's manufacturing facilities and practices in response to FDA requirements. The continuing uncertainty over the economy and the direction of health care reform, and its probable impact on purchasing practices, are the principal factors believed to account for the slowdown in the rate of revenue growth.
 "The FDA has in recent months increased its activities in manufacturing oversight of the device industry. We have responded, and while we can absorb increased regulatory compliance costs up to a point, when combined with the current slowdown in revenue growth, we presently face a doubly difficult situation this quarter," said Jim Hitchin, president of the company. "We will be monitoring the situation closely in the coming months to determine if this soft market will continue."
 Infrasonics manufactures incubators for premature babies, ventilators (respirators) for infants, children and adults, as well as other respiratory care products for use in more than 40 countries in hospitals and the home.
 -0- 6/17/93
 /CONTACT: Jim Hitchin, president, 619-450-9898, ext. 313, or Fred McGee, 619-450-9898, ext. 312, both of Infrasonics/
 (IFRA)


CO: Infrasonics Inc. ST: California IN: HEA SU: ERP

BP-MF -- SD004 -- 3346 06/17/93 18:33 EDT
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Publication:PR Newswire
Date:Jun 17, 1993
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