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Endocare Reports 2007 Third Quarter and Nine-Month Results
Date:10/31/2007

Nine Percent Year-Over-Year Revenue Growth

Margins Exceed 70 Percent

IRVINE, Calif., Oct. 31 /PRNewswire-FirstCall/ -- Endocare, Inc. (Nasdaq: ENDO), an innovative medical device company focused on the development of minimally invasive technologies for tissue and tumor ablation, reported today that continued year-over-year growth in cryoablation procedures and increased gross margins resulted in a reduction in operating loss in the third quarter ended September 30, 2007.

Third Quarter Results

The estimated number of domestic cryoablation procedures performed grew 25 percent to 2,353 from 1,883 in the prior year period. Endocare Chairman, CEO and President Craig T. Davenport said, "It was a strong summer quarter both in terms of solid sales and operational efficiencies. As expected, year-over-year procedure growth remained robust despite, as in prior years, showing the sequential impacts of seasonality."

Total revenues for the 2007 third quarter were $7.3 million, compared to $6.7 million in the 2006 third quarter. The 9.3 percent increase in revenues indicates that the business model shift away from service fees to disposable product sales is almost complete. The Company believes that revenue growth will continue to track more closely with procedure growth.

Davenport said, "The Company's decision in 2005 to migrate away from being a service provider and move toward a more conventional medical device sales model again resulted in improved margins, increased gross profit dollars and improved bottom-line results for the quarter. As stated in the past, this revenue mix shift has had a short-term effect of reducing revenue growth in prior periods. Howev
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SOURCE Endocare, Inc.
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