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Encision Reports 9.3% Revenue Increase in First Quarter Results
Date:7/28/2011

BOULDER, Colo., July 28, 2011 /PRNewswire/ -- Encision Inc. (Pink Sheets: ECIA), a medical device company owning patented surgical technology that is emerging as a standard of care in minimally-invasive surgery, reported its financial results for its first fiscal quarter ended June 30, 2011.

The Company recorded total revenue of $3.184 million, consisting of net product revenue of $2.833 million and net service revenue of $351 thousand, and had a net loss of $21,000 or $0.00 per share for the first quarter of fiscal year 2012. Total revenue represented a 9.3% increase from total revenue of $2.913 million for the first quarter of fiscal year 2011. The Company's net loss compared favorably to the $119,000 net loss, or $(0.02) per share for the first quarter of fiscal year 2011.

Gross profit margin, on total revenue, for the first quarter of fiscal year 2012 was 56% as compared to 63% for the first quarter of fiscal year 2011. The gross profit margin decrease from the first quarter of fiscal year 2011 was due to a planned manufacturing slowdown that resulted in higher product unit costs, principally of our disposable scissor inserts, and a slight increase, as a percentage of sales, of lower gross margin sales.

"We are pleased that our relationship with our strategic partners generated increased service revenue for us and enabled our total revenue to grow by 9.3% over our prior year's first quarter revenue," said Jack Serino, President and CEO of Encision Inc. "Our past efforts at expanding revenue opportunities through strategic partnerships has started to impact positively our revenue, as shown in our first quarter's revenue increase. These strategic partnership revenues complement our initiatives to regrow our AEM® business that was negatively impacted during the economic downturn and the resulting loss of business that we suffered."

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