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Escalon(R) Reports First Quarter Fiscal 2009 Results
Date:11/13/2008

ing expenses also grew due to increased marketing, general and administrative expenses at the Drew and Medical/Trek divisions. The increase at Drew was primarily related to the acquisition of JAS in May 2008 and an increase in technical service costs related to the increased placements of Drew's D3 instrument during the current period.

For the first quarter of fiscal 2009, the Company reported a net loss of $(480,862), or $(0.07) per diluted share, compared with net loss of $(828,791), or $(0.13) per diluted share, in the first quarter of fiscal 2008.

Recap of First Quarter 2009

Richard J. DePiano, Chairman and Chief Executive Officer, commented, "We produced solid revenue growth during the first fiscal quarter of 2009 while continuing to make strategic investments to broaden our product portfolio. Increased research and development expenses at Sonomed have resulted in the development of three new products. We expect that these new products will become available for sale during the second and third quarter of fiscal 2009. While operating expenses also rose during the quarter, much of this increase related to Drew's acquisition of JAS in May 2008, which enhanced Drew's position within the IVD reagent market. These actions, combined with the five FDA clearances we have received since July 2007, helped us realize product growth of 27% during the first fiscal quarter of 2009."

Mr. DePiano added, "In the Drew business unit, product revenue increased substantially to $1,214,000, or 40.0% year-over-year. Growth was driven by the JAS acquisition, improved reagent revenues and increased sales of Drew's D3 instrument. At Sonomed, we realized increased product revenue of $339,000, or 15.2%, as a expanded sales initiatives in Southeast Asia, India and the Pacific Rim. Sonomed's domestic sales also increased by approximately $80,000 related to cross-selling synergies achieved through utilizing EMI's sales force to represent Sonomed's products.


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SOURCE Escalon Medical Corp.
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