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SCIMED ANNOUNCES THIRD QUARTER RESULTS; SHIPS FIRST EXPRESS(R) RAPID EXCHANGE CATHETERS FROM ITS EUROPEAN FACILITY

 MINNEAPOLIS, Dec. 22 /PRNewswire/ -- SCIMED Life Systems, Inc. (NASDAQ-NMS: SMLS) announced today net earnings of $13,209,000, or 87 cents per common share, for the third quarter of Fiscal 1993, ended Nov. 30, 1992, compared with a net loss of $1,756,000, or 12 cents per share, for the same period last year. Net earnings for the nine months ended Nov. 30, 1992, increased 63 percent to $35,850,000, or $2.36 per share, compared with $21,991,000, or $1.46 per share, in Fiscal 1992.
 Net sales for the quarter were a record $56,806,000, an increase of 16 percent, compared with net sales of $49,053,000 last year. For the nine months, net sales increased 20 percent to $162,456,000, compared to $135,574,000 last year. Third quarter sales last year benefited from a non-recurring international inventory buildup by certain distributors who feared supply interruptions based on patent litigation which was subsequently resolved.
 Fiscal 1993 third quarter earnings were favorably impacted by improved operating efficiencies and lower litigation expense. However, SCIMED continues to incur expenses related to ongoing shareholder and patent litigation. During the third quarter last year, SCIMED expensed $28 million in connection with the settlement of patent litigation. Earnings this year were adversely impacted by royalty payments, increased investments in research and development and lower gross margins due to changes in sales mix, startup costs related to SCIMED manufacturing in Belgium and amortization of license fees.
 European Manufacturing
 SCIMED also announced today that it has begun shipping limited quantities of its EXPRESS rapid exchange catheters manufactured in Petit Rechain, Belgium, to its European customers. International is SCIMED's fastest growing business, currently representing nearly 20 percent of the company's total revenues.
 Dale A. Spencer, president and chief executive officer, commented, "We are encouraged with our third quarter progress, especially since it compares favorably with a very strong third quarter last year. We believe that sales will continue to improve in the fourth quarter due, in part, to the recent successful introduction of our NC Shadow(TM) non- compliant over-the-wire PTCA balloon catheter."
 SCIMED Life Systems, Inc. develops, manufactures, and markets disposable medical devices, principally coronary and peripheral angioplasty catheters, for non-surgical treatment of cardiovascular disease. SCIMED's shares are traded on the NASDAQ National Market System under the symbol SMLS.
 SCIMED Life Systems, Inc.
 Statements of Operations
 (Unaudited)
 Three Months Ended
 Nov. 30
 1992 1991
 Net Sales $56,806,000 $49,053,000
 Cost of Sales 11,357,000 7,960,000
 Gross Profit 45,449,000 41,093,000
 Operating Expenses:
 Selling, General
 and Administrative 15,264,000 13,809,000
 Royalties 6,098,000 262,000
 Research and Development 4,244,000 2,976,000
 Litigation Settlement -- 28,000,000
 Operating Profit (Loss) 19,843,000 (3,954,000)
 Interest Income 894,000 1,116,000
 Interest Expense 258,000 1,000
 Other Income (Expense), net -- (21,000)
 Earnings (Loss) Before
 Income Taxes 20,479,000 (2,860,000)
 Income Tax Expense (Benefit) 7,270,000 (1,104,000)
 Net Earnings (Loss) $13,209,000 $(1,756,000)
 Earnings (Loss)
 Per Common Share $.87 $(.12)
 Weighted Average Number
 of Common and Common
 Equivalent Shares
 Outstanding 15,225,000 14,792,000
 Nine Months Ended
 Nov. 30
 1992 1991
 Net Sales $162,456,000 $135,574,000
 Cost of Sales 34,335,000 26,242,000
 Gross Profit 128,121,000 109,332,000
 Operating Expenses:
 Selling, General
 and Administrative 45,521,000 41,202,000
 Royalties 16,773,000 646,000
 Research and Development 12,514,000 7,828,000
 Litigation Settlement -- 28,000,000
 Operating Profit (Loss) 53,313,000 31,656,000
 Interest Income 2,670,000 3,025,000
 Interest Expense 771,000 4,000
 Other Income (Expense), net 369,000 36,000
 Earnings (Loss) Before
 Income Taxes 55,581,000 34,713,000
 Income Tax Expense (Benefit) 19,731,000 12,722,000
 Net Earnings (Loss) $35,850,000 $21,991,000
 Earnings (Loss)
 Per Common Share $2.36 $1.46
 Weighted Average Number
 of Common and Common
 Equivalent Shares
 Outstanding 15,222,000 15,072,000
 Condensed Balance Sheets
 (Unaudited)
 11/30/92 2/29/92
 Cash and Cash Equivalents $111,870,000 $71,464,000
 Accounts Receivable, net 26,656,000 24,778,000
 Inventories 7,170,000 8,291,000
 Other Current Assets 8,768,000 9,363,000
 Total Current Assets 154,464,000 113,896,000
 Equipment and Furnishings, net 24,001,000 15,036,000
 Equity Investments 11,986,000 8,000,000
 License Fees and Purchased
 Technology, net 27,139,000 30,636,000
 Other Assets, net 1,778,000 1,327,000
 -- $219,368,000 $168,895,000
 Current Liabilities $40,733,000 $31,385,000
 Long-Term License Fees Payable 9,879,000 9,484,000
 Other Non-Current Liabilities 316,000 359,000
 Shareholders' Equity 168,440,000 127,667,000
 -- $219,368,000 $168,895,000
 -0- 12/22/92
 /CONTACT: Karen J. Kelsey, director, Investor and Public Relations of SCIMED, 612-494-1329/
 (SMLS)


CO: SCIMED Life Systems, Inc. ST: Minnesota IN: MTC SU: ERN

AL -- MN003 -- 9025 12/22/92 07:01 EST
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Date:Dec 22, 1992
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