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MEDICAL DEVICES REPORTS SECOND QUARTER RESULTS

 MEDICAL DEVICES REPORTS SECOND QUARTER RESULTS
 ST. PAUL, Minn., Feb. 14 /PRNewswire/ -- Medical Devices, Inc.


(NASDAQ: MDEV)(MDI) today reported net sales of $960,000 for the second quarter of fiscal 1992 ended Dec. 31, 1991, compared to $1,802,000 a year ago. Year-to-date sales are $2,510,000 this year versus $3,138,000 in the last year's first half. The company reported a net loss of $198,000 or $.09 per share in this year's second quarter compared to net earnings of $84,000 or $.04 per share in last year's second quarter. On a year-to-date basis, the net loss this year is $290,000 or $.14 per share versus net earnings of $152,000 or $.08 per share in last year's first six months.
 During the second quarter of the fiscal year the company began conversion to direct retail sales for all of its products, breaking with its tradition of only selling products to home health care dealers who then resold the products to patients. The company believes that this move will improve margins on its products while it continues to offer a full line of rehabilitation equipment to clinicians. The reallocation of resources to this direct sales program contributed to lower levels of sales across all product lines during the quarter ended Dec. 31, 1991. The direct sales operation did not recognize revenue until the last month of the quarter. While the company has a goal of supporting its key dealers in the future, it is expected that direct sales will grow during the next year and eventually account for the majority of the company's revenues. Sales during the quarter ended Dec. 31, 1991, were also negatively impacted by the company's decision to decrease emphasis on the wholesale distribution of its Plexus products and by returns of Plexus product. The company recorded $318,000 of returns against sales and increased its reserve for future product returns by an additional $22,000. The equipment that has been or will be returned will become an integral part of this direct operation, and the company does not expect similar levels of returns in the future.
 Medical Devices is a leading designer and manufacturer of electromedical rehabilitation and pain management products. The common stock of MDI is traded on the national over-the-counter market under the NASDAQ symbol MDEV.
 -0- 2/14/92
 /CONTACT: Robert C. Wingrove or Jeffrey P. Shields, 612-631-0590, both of Medical Devices/
 (MDEV) CO: Medical Devices, Inc. ST: Minnesota IN: MTC SU: ERN


AL -- MN015 -- 0379 02/14/92 16:58 EST
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Date:Feb 14, 1992
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