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SOMANETICS CORPORATION ANNOUNCES YEAR-END RESULTS

 SOMANETICS CORPORATION ANNOUNCES YEAR-END RESULTS
 TROY, Mich., Feb. 28 /PRNewswire/ -- Somanetics Corporation


(NASDAQ: SMTS) reported revenues of $230,000 for the fiscal year ended Nov. 30, 1991, and a net loss of $2,058,493. For fiscal 1990, the company reported no revenues and a net loss of $1,328,518. Gary D. Lewis, Somanetics chairman, president and chief executive officer, said the company experienced a net loss for the fiscal year primarily because it is still emerging from the development stage to an operating entity.
 "The company accomplished numerous objectives during the year, most significantly the completion of its initial public offering (IPO) in March and April 1991, and the addition of experienced senior management personnel," he said.
 The IPO's net proceeds of approximately $6.5 million after underwriting and offering costs were used to repay $2.1 million of debt previously raised from private sources and attract an experienced senior management team and key personnel. The capital raised from the IPO also was used to develop and modify the company's product, the INVOS(R) 3100 Cerebral Oximeter, obtain the issuance of additional patents and lease larger facilities for product assembly and administrative offices. In addition, the proceeds have been, and will continue to be, used for clinical testing, marketing, assembly and related start-up costs for the Cerebral Oximeter and to fund research and development projects and for working capital.
 According to Lewis, Somanetics plans to begin sales of the Cerebral Oximeter for resale after it receives Food and Drug Administration clearance of modifications to the Cerebral Oximeter and related disposable sensor, SomaSensor(TM), which the company hopes to obtain in fiscal 1992. The company then plans to pursue diversifications to its product line, beginning with the development of product extensions of the Cerebral Oximeter for use on children and newborns.
 During fiscal 1991 the company entered into agreements to market, sell and distribute its product with 10 specialty medical dealers in the United States as well as internationally in five nations. Earlier this month, the company announced it had signed an agreement with distributors in Japan, the Pacific Northwest and New England to market its products in those territories. The company expects to expand its specialty dealer network into many parts of the world during fiscal 1992.
 Somanetics also announced that it had signed a manufacturing agreement for its disposable sensor, the SomaSensor, to be produced by a high-volume foreign manufacturer. Terms of the agreement were not disclosed, although the contract is for the production of large quantities of sensors.
 After the end of fiscal 1991, through Feb. 20, 1992, the company has received $933,110 in proceeds from the exercise of 285,170 and 19,400 Class A and Class B Warrants, respectively, and has issued 304,570 Common Shares and 285,170 Class B Warrants as a result of such exercises.
 "We believe the framework for growth is in place," Lewis said. "Our management team has been planning carefully for 1992, and is prepared to market the Cerebral Oximeter, develop additional applications of INVOS technology and pursue other opportunities. We are very enthusiastic about the prospects for the future."
 Somanetics Corporation, headquartered in Troy, develops, markets and manufactures computer-based medical diagnostic and monitoring equipment using In Vivo Optical Spectroscopy (INVOS) technology. The company has developed the Somanetics INVOS 3100 Cerebral Oximeter which uses INVOS technology to measure noninvasively, directly and continuously, oxygen saturation of the blood in portions of an adult's brain. The Cerebral Oximeter is intended for use in a hospital's operating room, intensive care unit, recovery room and emergency room.
 Somanetics' Common Shares are publicly traded on NASDAQ under the symbol SMTS. Its Units trade under the symbol SMTSU. Its Class A Warrants trade under the symbol SMTSW and as of today, Feb. 28, 1992, its Class B Warrants trade under the symbol SMTSZ.
 SOMANETICS CORPORATION
 (A development stage company)
 SELECTED INCOME STATEMENT DATA
 For the Years Ended Nov. 30, 1991 and 1990
 (In thousands, except share and per-share data)
 Cumulative for the
 Period Jan. 15, 1982
 (Date of Inception)
 To Nov. 30,
 1991 1990 1991
 Total revenues $230 $0 $1,079
 Gross margin 46 0 892
 Net (loss) ($2,058) ($1,329) ($8,211)
 Net (loss) per share ($0.43) ($0.68) ($3.85)
 Weighted average no. of
 shares outstanding 4,764,140 1,948,964 2,136,991
 SOMANETICS CORPORATION
 (A development stage company)
 SELECTED BALANCE SHEET DATA
 Nov. 30, 1991 and 1990
 (In thousands)
 1991 1990
 Total current assets $3,546 $107
 Total assets 3,903 362
 Total current liabilities 854 1,857
 Long-term debt and
 redeemable convertible
 preferred shares 100 0
 Shareholders' equity
 (deficiency) 2,949 (1,495)
 -0- 2/28/92
 /CONTACT: Mary Ann Robb of Somanetics Corporation, 313-689-3996/
 (SMTS) CO: Somanetics Corporation ST: Michigan IN: MTC SU: ERN


SM-MJ -- DE035 -- 3864 02/28/92 16:20 EST
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