Escalon(R) Reports First Quarter Fiscal 20...(SUBSIDIARIES CONDENSED C...),Health

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

Three Months Ended September 30,

2007 2006

Net revenues:

Product revenue $6,833,350 $6,543,586

Other revenue $59,921 624,574

Revenues, net 6,893,271 7,168,160

Costs and expenses:

Cost of goods sold $3,922,586 3,630,380

Research and development $923,361 713,605

Marketing, general and

administrative $2,939,908 3,555,900

Total costs and expenses 7,785,855 7,899,885

Loss from operations (892,584) (731,725)

Other (expense) and income:

Equity in Ocular Telehealth

Management, LLC (34,111) (18,543)

Interest income 101,697 45,436

Interest expense (3,793) (9,285)

Total other income 63,793 17,608

Net (loss) before taxes (828,791) (714,117)

Provision for income taxes 0 0

Net (loss) $(828,791) $(714,117)

Basic net (loss) per share $(0.13) $(0.11)

Diluted net (loss) per share $(0.13) $(0.11)

Weighted average shares - basic 6,388,086 6,344,657

Weighted average shares - diluted 6,388,086 6,344,657

SELECTED BALANCE SHEET DATA:

September 30, June 30,

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