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Escalon(R) Reports Financial Results for 2007 Fiscal Year
Date:9/28/2007

to market during 2008," Mr. DePiano added.

Mr. DePiano concluded, "Furthermore, with the previously announced reorganization of the Drew business, we have significantly reduced operating costs and expanded operating margins for the Company as a whole. We continue to pursue the significant opportunities ahead and, due to our recent rationalization efforts and anticipated new product launches within Drew and other business units, we enter 2008 with solid momentum and a stronger business platform."

Non-GAAP Measures

To supplement the Company's consolidated financial statements presented in accordance with GAAP, the Company has begun providing certain non-GAAP measures of financial performance. These non-GAAP measures include non-GAAP net loss and non-GAAP loss per fully diluted share.

The Company's reference to these non-GAAP measures should be considered in addition to results prepared under current accounting standards, but are not a substitute for, nor superior to, GAAP results. These non-GAAP measures are provided to enhance investors overall understanding of the Company's current financial performance and provide further information for comparative purposes due to the adoption of the new accounting standard FAS 123R.

Specifically, the Company believes the non-GAAP measures provide useful information to both management and investors by isolating certain expenses, gains and losses that may not be indicative of its core operating results and business outlook. In addition, the Company believes non-GAAP measures that exclude stock-based compensation expense enhance the comparability of results against prior periods. The non-GAAP measures and the reconciliation to the most directly comparable GAAP measure of all non-GAAP measures are as follows:

June 30, June 30, June 30,

2007 2006 2005

Net Income (Loss)
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SOURCE Escalon Medical Corp.
Copyright©2007 PR Newswire.
All rights reserved

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