Escalon(R) Reports Second Quarter Fiscal 20...(th and marketing strategies improve upon...)

operations of the Company's business units, including the integration

of Drew's and MRP's operations, the reorganization of the Drew business

and the integration of any acquisitions it may undertake, if any, of

which there can be no assurance,

-- implement cost reductions,

-- generate cash,

-- identify, finance and enter into business relationships and

acquisitions.

Other factors include uncertainties and risks related to:

-- new product development, commercialization, manufacturing and market

acceptance of new products,

-- marketing acceptance of existing products in new markets,

-- research and development activities, including failure to demonstrate

clinical efficacy,

-- delays by regulatory authorities, scientific and technical advances by

Escalon or third parties,

-- introduction of competitive products,

-- third party reimbursement and physician training, and

general economic conditions.

Further information about these and other relevant risks and uncertainties may be found in the Company's report on Form 10- K, and its other filings with the Securities and Exchange Commission, all of which are available from the Commission as well as other sources.

ESCALON MEDICAL CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

Three Months Ended Six Months Ended

December 31, December 31,

2007 2006 2007 2006

Net revenues:

Product revenue $7,449,626 $7,033,860 $14,282,976 $13,577,446

Other revenue 45,454 602,880 105,375 1,227,454

Revenues, net 7,495,08
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