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Escalon(R) Announces Going Concern Qualification
Date:10/13/2009

WAYNE, Pa., Oct. 13 /PRNewswire-FirstCall/ -- Escalon Medical Corp. (Nasdaq: ESMC), today announced that its financial statements for the fiscal year ended June 30, 2009, included in the Annual Report on Form 10-K, filed with the Securities and Exchange Commission on October 13, 2009, contain a going concern qualification from its independent registered public accounting firm. This announcement is being made in compliance with NASDAQ Marketplace Rule 4350(b)(1)(B), which requires separate disclosure of a recent audit opinion that contains a going concern qualification. This announcement does not represent any change or amendment to the Company's June 30, 2009 financial statements or to its Annual Report on Form 10-K for that fiscal period.

Founded in 1987, the Company (www.escalonmed.com) develops markets and distributes ophthalmic diagnostic, surgical and pharmaceutical products as well as vascular access devices. Drew Scientific, which operates as a separate business unit, provides instrumentation and consumables for the diagnosis and monitoring of medical disorders in the areas of diabetes, cardiovascular diseases and hematology, as well as veterinary hematology and blood chemistry. The Company seeks to utilize strategic partnerships to help finance its development programs and is also seeking acquisitions to further diversify its product line to achieve critical mass in sales and take better advantage of the Company 's distribution capabilities, although such partnerships or acquisitions may not occur. The Company has headquarters in Wayne, Pennsylvania and operations in Long Island, New York, New Berlin, Wisconsin, Lawrence, Massachusetts, Dallas, Texas, Waterbury, Connecticut, Miami, Florida, Barrow-in-Furness, U.K. and Le Rheu, France.

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