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STI REPORTS EARNINGS INCREASE IN SECOND QUARTER FISCAL 1993

 ROCKVILLE, Md., March 18 /PRNewswire/ -- Survival Technology, Inc. (NASDAQ: STIQ), announced today unaudited results of operations for its second quarter and first six months ended Jan. 31, 1993. STI reported net income of $425,300 (14 cents per share) on sales of $8 million for the second quarter of fiscal 1993 representing a 15 percent increase over net income of $369,000 (12 cents per share) on sales of $10 million in the same prior year period. Net earnings for the first six months of fiscal 1993 totaled $1,031,400 (34 cents per share) on sales of $17.3 million, an increase of 54 percent over net earnings of $670,000 (22 cents per share) on sales of $19.4 million during the same period in fiscal 1992.
 "The company achieved stronger earnings due to a shift in sales to higher margin auto-injector products," said James H. Miller, president and chief executive officer of STI. "At the same time, we are making substantial progress in the development of new auto- injector systems, and are currently negotiating with a number of pharmaceutical and biotechnology companies for the development and production of new products using our proprietary technology. These ongoing negotiations combine an up-front licensing fee with a long- term supply agreement in exchange for exclusive rights to STI's patented products."
 Gross margins increased to 29 percent for the quarter and six months ended Jan. 31, 1993, representing a substantial improvement over the corresponding prior year periods. Also contributing to improved gross margins was a decline in sales of Toradol prefilled syringes, one of STI's lowest margin products. The decrease resulted from the 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.
 Sales of military products totalled $4.2 million and $8.3 million in the current quarter and first six months of fiscal 1993 representing increases of $2.9 million and $4.5 million, respectively, when compared with the same two periods last year. These increases resulted from sales of the company's AtroPen auto- injector to an allied foreign government aggregating $1.9 million and $4.1 million in the second quarter and first six months of the current fiscal year. Deliveries under this contract will be completed in the third quarter of the current fiscal year. Also contributing to the increase in military revenue was the previously announced award of a multiyear industrial base maintenance contract from the U.S. Department of Defense.
 Although operating margins improved, results were adversely affected by health insurance cost increases of $466,500 (150 percent) during the current quarter of fiscal 1993 when compared with the same prior year period. The company incurred three catastrophic health care claims during the current quarter while additional increases are believed to have resulted from higher utilization of health insurance in anticipation of manufacturing layoffs following the announced termination of the Syntex agreement.
 STI recently announced that it received patent protection for a new consumer-oriented auto-injector delivery system, designed for fast and reliable patient self-administration in the expanding array of new pharmaceuticals and biotechnology products that require injection. This new device, known as Q-Pen, is part of a family of advanced automatic drug injection systems now in development by STI. The company also recently received clearance from the U.S. Food and Drug Administration to market the CB-IIA CardioBeeper, an advanced portable heart monitor featuring a rolling loop memory and one-button operation.
 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- 3/18/93
 /CONTACT: Jeffrey W. Church, V.P.-finance and CFO, or Cristina D'Erasmo, assistant treasurer, Survival Technology, Inc., 301-926-1800/
 (STIQ)


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

TW-MH -- DC006 -- 7373 03/18/93 10:10 EST
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Date:Mar 18, 1993
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