Patient Safety Technologies Reports Second Quart...( ...),Health

TEMECULA, Calif., Aug. 6 /PRNewswire-FirstCall/ -- Patient Safety Technologies, Inc. (OTC Bulletin Board: PSTX) today announced record quarterly revenues.

"We are pleased to announce record second quarter revenues," stated Steven H. Kane, Chief Executive Officer of Patient Safety Technologies. "An increasing number of the nation's most prestigious medical institutions are adopting the Safety Sponge((TM)) System as the solution to the problem of retained surgical sponges. We see our unique technology progressing towards becoming the industry's standard of care. The company recently passed the 500,000 procedure milestone using our Safety Sponge((TM)) System, more than triple the sum of all of our competitors combined." Kane added, "Patient Safety Technologies is committed to applying its proven solutions to help hospitals face the challenges of improving patient safety, while at the same time increasing productivity and reducing costs. Additionally, we will continue to grow our potential market by working with the medical community to expand the application of our patented technology to address additional critical problem areas."

Second Quarter and Half-Year Results

Revenues for second quarter 2009 were $1.0 million, an increase of 85% over the $557 thousand reported for second quarter 2008, and an increase over first quarter 2009 revenue of $936 thousand. Second quarter 2009 sales of the company's core sponge products reached $1.0 million vs. $732 thousand in first quarter 2009. This 37% increase in sponge sales reflects the continued expansion in the company's installed customer base. Gross margin for the quarter ended June 30, 2009 was 40%, a decrease over the 41% gross margin for the quarter ended June 30, 2008

Loss from operations before income taxes for second quarter 2009 was comprised of $1.8 million from direc
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