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

"Within Vascular, product revenue increased $194,000, or 24.1%, due to stronger sales of its core needle business. In the EMI business unit, product revenue increased $149,000, or 39.5%, due to the continued expansion of EMI's product offerings and by the increased effectiveness of new salespeople brought on during the last year. The only business unit to see a decrease in product revenue was the Medical/Trek business unit, where product revenue decreased $60,000, or 16% during the quarter compared to the same period last fiscal year. This decrease is attributable to Medical/Trek's aging product line of Ispan Intraocular gases and fiber optic light sources."

Mr. DePiano concluded, "Overall, we are pleased with our top-line performance during the first fiscal quarter of 2009, where we began to realize the benefits of our development efforts. We continue to take steps to diversify our product portfolio, enhance our market position as well as build on our strengths, and believe these initiatives will ultimately support the continued expansion of the organization and generate long-term financial growth."

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 in
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SOURCE Escalon Medical Corp.
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