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MEDICAL TECHNOLOGY SYSTEMS ANNOUNCES 28th CONSECUTIVE QUARTER OF NET SALES AND EARNINGS GROWTH

 MEDICAL TECHNOLOGY SYSTEMS ANNOUNCES 28th CONSECUTIVE QUARTER
 OF NET SALES AND EARNINGS GROWTH
 CLEARWATER, Fla., June 25 /PRNewswire/ -- Medical Technology Systems, Inc. (NASDAQ-NMS: MSYS), today reported that for the year ended March 31, 1992, net income increased 61 percent to $1.5 million compared to $917,000. Net sales increased 53 percent to $7.5 million compared to $4.8 million.
 On a per share basis, earnings were up 9 percent to $0.45 on 3,255,000 weighted average common shares outstanding compared to $0.42 in fiscal 1991 on 2,193,000 weighted average common shares outstanding.
 Harold B. Siegel, president and CEO, said, "Shareholders should be pleased that Medical Technology Systems' rapid growth enabled the company to increase earnings per share despite dilution from a stock offering earlier in the fiscal year."
 The weighted average common shares outstanding increased 48 percent due to a July 1991 offering, which raised $5 million to pay off debt and fuel the company's growth plan.
 For the fourth quarter ended March 31, 1992, net income increased 47 percent to $465,000 compared to $316,000 in the year-ago quarter. Net sales increased 93 percent to $2.7 million compared to $1.4 million.
 Siegel commented that this was the company's 28th consecutive quarter of revenue and earnings growth.
 On a per share basis, earnings were level at $0.14 on 3,255,000 weighted average common shares outstanding compared to 2,193,000 in the year-ago quarter.
 Fourth quarter net sales included a 20 percent increase in net sales of MSYS' medication card business, to $1.7 million compared to $1.4 million, and $1.0 million in net sales from MSYS' clinical laboratories, which were acquired during the third quarter. Selling, general and administrative expenses increased due to expanded operations, but remained under control at 7 percent of net sales compared to 6 percent in the year-ago quarter. The $275,000 in depreciation and amortization included goodwill from the labs' acquisition. The tax rate was 40 percent compared to 30 percent due to the federal Minimum Alternative Tax.
 Net sales for the year included a 20 percent increase in net sales of MSYS' medication card business, to $5.9 million compared to $4.9 million, and $1.6 million in net sales from MSYS' labs.
 Siegel said growth trends are continuing in the first fiscal quarter ending in June and should continue during fiscal 1993 for all of the company's operations:
 -- Gross margins at MSYS' medication card business should expand with price increases, scheduled to take effect in July, to compensate for increased materials costs.
 -- Adding marketing personnel at the labs for the first time should continue to expand that business. When MSYS acquired the labs, their revenues were running at about $3.8 million annually.
 -- Starting in the second quarter ending in September, MSYS' June acquisition of Vangard Labs, Inc., will begin significantly contributing to profitability. Vangard, with annual revenues at approximately $6 million before the acquisition, packages generic pharmaceuticals in unit doses for the hospital market.
 MSYS plans to install its advanced, proprietary blister card packaging technology and equipment at Vangard. MSYS believes that if it can convert 15-20 percent of its current customers' annual volume of unfilled medication cards to pre-filled cards supplied by Vangard, this would double Vangard's revenues and expand margins.
 Medical Technology Systems, Inc., of Clearwater, is the nation's largest supplier of automated equipment and supplies for packaging 30-day prescriptions of tablets or capsules in customized, blister pack punch cards. Medication cards are more efficient and economical for nursing homes, hospitals and other healthcare facilities to administer and monitor patient medication.
 MEDICAL TECHNOLOGY SYSTEMS, INC.
 Statement of Operations
 (In thousands except per share data)
 Periods ended Quarter Year
 March 31 1992 1991 1992 1991
 (Unaudited) (Audited)
 Net sales:
 MTS Systems $1,707 $1,418 $5,888 $4,886
 MTS Laboratories 1,030 -- 1,612 --
 Total 2,737 1,418 7,500 4,886
 Cost of sales:
 MTS Systems 1,032 781 3,216 2,633
 MTS Laboratories 388 -- 605 --
 Total 1,420 781 3,821 2,633
 Gross profit:
 MTS Systems 675 637 2,672 2,253
 MTS Laboratories 642 -- 1,007 --
 Total 1,317 637 3,679 2,253
 SG&A 197 82 582 319
 Depreciation & amort. 275 12 547 286
 Interest, net 65 90 234 338
 Total 537 184 1,363 942
 Income before
 income taxes 780 453 2,316 1,311
 Income taxes 315 137 839 394
 Net income $ 465 $ 316 $1,476 $ 917
 Net income per share $0.14 $0.14 $0.45 $0.42
 Weighted average common
 shares outstanding(A) 3,255 2,193 3,255 2,193
 (A) -- A secondary offering of 1,200,000 shares of common stock (as adjusted) was successfully concluded on July 18, 1991.
 -0- 6/25/92 R
 /CONTACT: Harold B. Siegel, president and CEO of MSYS, 800-334-6663 or 813-576-6311; or Gary Fishman of the Hudson Stone Group, 212-226-8550, for MSYS/
 (MSYS) CO: Medical Technology Systems, Inc. ST: Florida IN: HEA SU: ERN


SM-GK -- NY010R -- 3711 06/25/92 11:05 EDT
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Date:Jun 25, 1992
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