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STI REPORTS CONTINUED EARNINGS FOR ITS FISCAL 1993 THIRD QUARTER

 ROCKVILLE, Md., June 11 /PRNewswire/ -- Survival Technology, Inc. (NASDAQ-NMS: STIQ), announced today unaudited results of operations for its third quarter and first nine months ended April 30, 1993. STI reported net income for the first nine months of fiscal 1993 totaling $1,347,800 (44 cents per share) on sales of $23.9 million, an increase of 19 percent over net income of $1,130,800 (37 cents per share) on sales of $29.7 million during the same nine-month period in fiscal 1992. Net income of $316,400 (10 cents per share) on sales of $6.5 million for the third quarter of fiscal 1993 compares to net income of $460,800 (15 cents per share) on sales of $10.3 million in the same prior year period. The company projects continued profitability in the fourth quarter of fiscal 1993 and anticipates that current year earnings will be comparable to the prior fiscal year.
 Increased sales of STI's auto-injector products improved gross margins to 35 percent for the quarter and 31 percent for the nine months ended April 30, 1993, representing a substantial improvement over the corresponding prior year periods. This improvement is attributable to increased sales of higher margin military auto-injector products (AtroPen) coupled with the previously announced award of an industrial base maintenance contract by the U.S. Department of Defense to the company during the second quarter. Also contributing to these margin improvements was management's efforts to streamline manufacturing operations during fiscal 1992 with the implementation of the capital expansion program coupled with a sharp decline in sales of Toradol prefilled syringes, one of STI's lowest-margin products. The decrease in Toradol prefilled syringes resulted from the previously announced termination of the company's agreement with Syntex Laboratories, Inc., for the manufacturing and packaging of Syntex's drug Toradol in STI's Cartrix syringe system. All deliveries under this agreement were completed in December 1992.
 "STI has continued to increase its activities and investments designed to fully capitalize on its exclusive auto-injector technology in the years ahead," said James H. Miller, president and chief executive officer of STI. The company is now developing a family of auto-injector drug delivery systems for use with the growing array of injectable pharmaceutical and biotechnology products resulting in increased expenditures for research and development and commercial development activities during the quarter over the same period a year ago.
 The company has been engaged by various pharmaceutical and biotechnology companies to conduct studies on their drugs with STI's proprietary auto-injector technology with a view toward future production upon successful completion of such projects. Revenues from these development contracts aggregated $411,800 and $1.2 million in the current quarter and first nine months of fiscal 1993, representing increases of $254,500 (162 percent) and $895,800 (317 percent), respectively when compared with the same prior year periods. The company is currently negotiating with a growing number of pharmaceutical and biotechnology companies for the development and production of new products using STI's proprietary technology.
 "With the accelerating discovery and development of commercial pharmaceutical and biological products that demand injection by the patient, we are increasingly optimistic about the long-term growth of STI," Miller said. "The rise of home health care and the downward pressure on total health costs provide further impetus for expanded use of auto-injector technology in the coming years."
 STI is a technology-based health care company that designs, develops and produces automatic injectors, prefilled syringes and medical electronics, with a major focus on safe and convenient participation by the patient in injection therapy. The company also supplies customized drug delivery system design, pharmaceutical research and development and GMP-approved sterile product manufacturing to major pharmaceutical companies worldwide.
 -0- 6/11/93
 /NOTE: Toradol and Cartrix are registered trademarks./
 /CONTACT: Jeffrey W. Church, V.P.-finance & CFO, or Cristina D'Erasmo, assistant treasurer, both of Survival Technology, 301-926-1800/
 (STIQ)


CO: Survival Technology, Inc. ST: Maryland IN: MTC SU: ERN

DC-MH -- DC020 -- 1162 06/11/93 15:26 EST
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Date:Jun 11, 1993
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