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Recap of Fiscal First Quarter 2008

Richard J. DePiano, Chairman and Chief Executive Officer, commented, "During the fiscal first quarter of 2008, we began to realize the full effect of our initiatives to streamline operations implemented during September 2006 with respect to the Drew business. We are very pleased with the performance at Drew and continue to look for additional opportunities to reduce our operating costs and expand operating margins throughout the entire organization."

Mr. DePiano added, "Turning to our operating performance for the first quarter of fiscal 2008, product revenue was $6,833,000 an increase of approximately $289,000, or 4%, during the three-month period ended September 30, 2007 compared with the same period last fiscal year. In the Drew business unit, product revenue was $3,036,000 an increase of approximately $250,000, or 9%, compared with the same period last fiscal year. The increase is primarily due to the introduction of the new FDA Trilogy instrument, international sales of the new D3 instrument and increased reagent revenues generated from Drew's United Kingdom facility. We anticipate that Drew's new D3 instrument will be ready for sale in the United States in the second quarter of fiscal 2008."

"At our Sonomed business unit, product revenue was $2,233,000 a decrease of approximately $60,000, or 3%, compared with last the fiscal year. The primary reason for this was a large increase in lower margin international sales combined with an overall decrease in unit sales in the higher margin domestic market on the VuMax II. Product revenue decreased $13,000, or 2%, to $804,000 from $817,000 in the Vascular business unit compared with the same period last fiscal year, pr
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