Press Releases

WAYNE, Pa., Nov. 20 /PRNewswire-FirstCall/ -- Escalon Medical Corp. (Nasdaq Market: ESMC) announced the results for its fiscal first quarter ended September 30, 2009.

For the first quarter of fiscal 2010, product revenue decreased approximately $234,000, or 2.7%, to $8,435,000 during the three-month period ended September 30, 2009 as compared to the same period last fiscal year. The Company reported the decreased net revenue of $8,434,000 compared with $8,669,000 in fiscal 2008. Revenue at Sonomed, Vascular, EMI and Medical/Trek decreased 20.8%, 6.7%, 2.3% and .9%, respectively, during the three-month period ended September 30, 2009 when compared to the same period last fiscal year. These decreases were offset by increased sales at the Drew business unit of 9%, during the three-month period ended September 30, 2009 compared to the same period last fiscal year.

Other revenue decreased approximately $9,000 or 32.1% during the three-month period ended September 30, 2009 as compared to the same period last fiscal year. This was attributable to decreased Bio-Rad royalties received in the Drew business unit.

Cost of goods sold as a percentage of product revenue decreased to approximately 54.4% of revenues during the three-month period ended September 30, 2009, as compared to approximately 55.9% of product revenue for the same period last fiscal year.

Marketing, General and Administrative expenses increased approximately 14.9% during the three-month period ended September 30, 2009 as compared to the same period in the prior fiscal year. The Drew business unit had increased marketing, general and administrative expenses of 67.6% related to the acquisition of Biocode Hycel ("Biocode") on December 31, 2008 for the three-month period ended September 30, 2009 as compared to the same period in the prior fiscal year. This was offset by decreases of 21.7%, 6.6% and 30.8% at Sonomed, Vascular, EMI and Medical/Trek, respectively, for the same period. Research and development decreased 58.7%, 39.7%, and 33.3% at Drew, Sonomed and EMI, respectively, for the three-month period ended September 30, 2009 as compared to the same period last year. These decreases were partially offset by a 62.9% increase at Vascular related to the completion of Vascular's modified VascuView product.

In the Drew business unit, product revenue increased $383,000, or 9.0%, as compared to the same period last fiscal year. The increase in product revenue is related to the acquisition of Biocode. Biocode generated $1,336,000 in revenue for the period ended September 30, 2009.

Product revenue decreased $535,000, or 20.8%, at the Sonomed business unit as compared to the same period last fiscal year. The decrease in product revenue was primarily caused by a significant contraction in the capital equipment marketplace related to the global economic recession.

Product revenue decreased $67,000, or 6.7%, to $931,000 in the Vascular business unit during the three-month period ended September 30, 2009 as compared to the same period last fiscal year. The decrease in product revenue in the Vascular business unit was primarily related to weaker sales of Vascular's core needle business. Vascular's modified VascuView was submitted for FDA clearance in September 2009. Vascular anticipates initial sales of the modified VascuView to take place in January 2010.

Product revenue decreased $12,000, or 2.3%, in the EMI business unit when compared to the same period last year. The decrease in sales is related to the weakening of the capital equipment market related to the global economic recession, offset by increased custom system sales during the three month period ended September 30, 2009.

In the Medical/Trek business unit, product revenue decreased $3,000, or 0.9%, to $320,000 during the three-month period ended September 30, 2009 as compared to the same period last fiscal year. The decrease in Medical/Trek product revenue is attributed to Medical/Trek's aging product line of Ispan Intraocular gases and fiber optic light sources.

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 investors by isolating certain expenses, gains and losses that may not be indicative of its core operating results and business outlook. In addition, the Company believes non-GAAP measures that exclude stock-based compensation expense enhance the comparability of results against prior periods. The non-GAAP measures and the reconciliation to the most directly comparable GAAP measure of all non-GAAP measures are as follows:

                                 Quarter Ended September 30, 2009
                                   2009                    2008
                                   ----                    ----

Net loss                      $(657,499)              $(480,862)
Non-GAAP adjustments:
Stock based compensation        $39,973                $148,868
Depreciation and amortization  $249,092                $167,098
                               --------                --------

Total adjustments              $289,065                $315,966
                               --------                --------

Non-GAAP adjusted (loss)
 income                       $(368,434)              $(164,896)
                              =========               =========

Shares used in computing
 basic and fully diluted
 earnings per share           7,526,430               6,413,930
                              =========               =========



Non-GAAP adjusted income
 (loss) per fully diluted
 share                           $(0.05)                 $(0.03)
                                 ======                  ======

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.

Note: This press release contains statements that are considered forward-looking under the Private Securities Litigation Reform Act of 1995, including statements about the Company's future prospects. These statements are based on the Company's current expectations and are subject to a number of uncertainties and risks, and actual results may differ materially. The uncertainties and risks include whether the Company is able to:

    --  implement its growth and marketing strategies, improve upon the
        operations of the Company business units, including the ability to make
        acquisitions and the integration of any acquisitions it may undertake,
        if any, of which there can be no assurance,
    --  implement cost reductions,
    --  generate cash,
    --  identify, finance and enter into business relationships and
        acquisitions.

Other factors include uncertainties and risks related to:

    --  new product development, commercialization, manufacturing and market
        acceptance of new products,
    --  marketing acceptance of existing products in new markets,
    --  research and development activities, including failure to demonstrate
        clinical efficacy,
    --  delays by regulatory authorities, scientific and technical advances by
        the Company or third parties,
    --  introduction of competitive products,
    --  ability to reduce staffing and other costs and retain benefit of prior
        reductions
    --  third party reimbursement and physician training, and
    --  general economic conditions.

Further information about these and other relevant risks and uncertainties may be found in the Company's report on Form 10- K for year ended June 30, 2009, and its other filings with the Securities and Exchange Commission, all of which are available from the Securities and Exchange Commission as well as other sources.

--Financial Tables Follow--

SELECTED BALANCE SHEET DATA:

                   ESCALON MEDICAL CORP. AND SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEETS

                                     September 30,           June 30,
                                              2009               2009
                                              ----               ----


ASSETS
Current assets:
  Cash and cash equivalents             $1,830,869         $1,810,045
  Accounts receivable, net               4,670,691          4,853,856
  Inventory, net                         9,218,105          9,830,922
  Other current assets                   1,360,057          1,065,823
                                         ---------          ---------
    Total current assets                17,079,722         17,560,646
                                        ----------         ----------
Furniture and equipment,
 net                                       834,103            892,966
Goodwill                                 2,065,236          2,065,236
Trademarks and trade names                 694,006            694,006
Patents, net                             1,774,914          1,824,172
Covenant not to compete and
 customer list, net                      1,846,110          1,880,639
Other assets                                55,528            137,737
                                            ------            -------
  Total assets                         $24,349,619        $25,055,402
                                       ===========        ===========

LIABILITIES AND
 SHAREHOLDERS' EQUITY
Current liabilities:
  Current portion of long-
   term debt                            $1,367,121         $1,374,711
  Accounts payable                       3,257,092          2,553,481
  Accrued expenses                       2,187,986          2,919,540
                                         ---------          ---------
    Total current liabilities            6,812,199          6,847,732
                                         ---------          ---------

Long-term debt, net of
 current portion                         4,924,800          4,741,207
Accrued post-retirement
 benefits                                1,027,821          1,027,821
                                         ---------          ---------
    Total long-term
     liabilities                         5,952,621          5,769,028
                                         ---------          ---------


  Total liabilities                     12,764,820         12,616,760
                                        ----------         ----------
Shareholders equity:
Preferred stock, $0.001 par value; 2,000,000
 shares authorized; no shares issued
Common stock, $0.001 par
 value; 35,000,000 share
 authorized; 7,526,430
 issued and outstanding at
 September 30, 2009 and
 June 30, 2009,
 respectively                                7,526            7,526

Common stock warrants                    1,733,460          1,733,460
Additional paid-in capital              67,498,718         67,458,745
Accumulated deficit                    (56,890,003)       (56,232,503)
Accumulated other
 comprehensive (loss)                     (764,902)          (528,586)
                                          --------           --------
  Total shareholders' equity            11,584,799         12,438,642
                                        ----------         ----------
  Total liabilities and
   shareholders' equity                $24,349,619        $25,055,402
                                       ===========        ===========

SOURCE Escalon Medical Corp.

PRINCE GEORGE, BRITISH COLUMBIA -- (MARKET WIRE) -- 11/20/09 -- Editor's note: a photo is included with this news release.

More than 150 workers and community supporters marched through downtown Prince George today protesting the B.C. government's repressive Bill 21.

The march ended in a rally outside Prince George - Valemount MLA Shirley Bond's Office at lunchtime. The marchers were cheered by car drivers honking their support.

Participants came from as far away as Prince Rupert, Fort St. John and Dawson Creek to voice their opposition to the Bill that stripped CUPE 873 ambulance paramedics of their right to strike while they were voting on an offer from the government. That marked a shameful first in Canadian labour history. The message to Bond and her fellow B.C. Liberal MLAs was clear - collective bargaining is a Charter right and Bill 21 takes this right away from workers across the province.

CUPE BC general vice-president Steve Storch reviewed the negative effects of the legislation on paramedics and the threat it poses for more than 200,000 public-sector workers entering into bargaining next year.

CUPE Northern Area District Council president Dan Weiman told the crowd about his volunteer rescue work and his experiences working side-by-side with rural paramedics. He voiced his outrage at the lack of respect the provincial government has shown our first responders and said it was shameful that part-time paramedics make less money than coffee shop workers.

Local Paramedics who joined the protest were heartened by the support from both the public and fellow union members.

At the end of the rally, the CUPE representatives tried to speak to Shirley Bond in her office - but were unsuccessful. They left their contact information and requested a meeting with her to follow up on their concerns.

To view the photo accompanying this release, please click on the following link: http://www.marketwire.com/library/20091120-cupe1120.jpg.

Contacts:
CUPE
Murray Bush
National Communications Representative
778.554.2234
www.CUPE.BC.ca

PRINCE GEORGE, BRITISH COLUMBIA--(Marketwire - Nov. 20, 2009) -

Editor's note: a photo is included with this news release.

More than 150 workers and community supporters marched through downtown Prince George today protesting the B.C. government's repressive Bill 21.

The march ended in a rally outside Prince George - Valemount MLA Shirley Bond's Office at lunchtime. The marchers were cheered by car drivers honking their support.

Participants came from as far away as Prince Rupert, Fort St. John and Dawson Creek to voice their opposition to the Bill that stripped CUPE 873 ambulance paramedics of their right to strike while they were voting on an offer from the government. That marked a shameful first in Canadian labour history. The message to Bond and her fellow B.C. Liberal MLAs was clear - collective bargaining is a Charter right and Bill 21 takes this right away from workers across the province.

CUPE BC general vice-president Steve Storch reviewed the negative effects of the legislation on paramedics and the threat it poses for more than 200,000 public-sector workers entering into bargaining next year.

CUPE Northern Area District Council president Dan Weiman told the crowd about his volunteer rescue work and his experiences working side-by-side with rural paramedics. He voiced his outrage at the lack of respect the provincial government has shown our first responders and said it was shameful that part-time paramedics make less money than coffee shop workers.

Local Paramedics who joined the protest were heartened by the support from both the public and fellow union members.

At the end of the rally, the CUPE representatives tried to speak to Shirley Bond in her office - but were unsuccessful. They left their contact information and requested a meeting with her to follow up on their concerns.

To view the photo accompanying this release, please click on the following link: http://www.marketwire.com/library/20091120-cupe1120.jpg.

FOR FURTHER INFORMATION PLEASE CONTACT:
        CUPE
        Murray Bush
        National Communications Representative
        778.554.2234
        www.CUPE.BC.ca

Source: Canadian Union of Public Employees (CUPE) - BC

BOSTON, Nov. 20 /PRNewswire/ -- The United States Court of Appeals for the First Circuit upheld an earlier District Court ruling yesterday, approving a settlement in the long-running Average Wholesale Price (AWP) pharmaceutical litigation against AstraZeneca Pharmaceuticals (NYSE: AZN).

(Logo: http://www.newscom.com/cgi-bin/prnh/20080317/AQM144LOGO)

The ruling affirms a settlement that awarded consumers who purchased the pharmaceutical giant's prostate cancer drug Zoladex treble damages, a rare if not unprecedented event in consumer litigation.

The case, argued by Steve W. Berman a Seattle plaintiff's attorney with Hagens Berman Sobol Shapiro (HBSS), afforded thousands of consumers access to a $24 million settlement against the drug giant accused of manipulating the price of Zoladex.

Under the settlement approved by the U.S. District Court in November 2007, any consumer who could provide reasonable documentation can receive three times the actual damages. Any funds left over from the $24 million settlement would go to non-profit organizations. Experts representing the plaintiffs expect that only about $21 million will be claimed by class members, many of whom have passed away since the case was filed.

The distribution to charities falls under a legal doctrine cy pre, a Norman French expression for "as near as it comes," allowing for the unclaimed amount of the settlement to benefit those in the class, even if indirectly.

This is the first time the First Circuit has affirmed the use of cy pre in this way.

The ruling was in response to an appeal filed by a class member who objected to the settlement, claiming the cy pre fund lowered the amount of recovery to class members. The objecting claimant also argued that the payment methodology was flawed; that payments discriminated against class members with supplemental insurance and that a conflict of interest existed since one of the plaintiffs could receive cy pre funding.

The court dismissed each of the objector's claims filed by attorney Don Haviland as "meritless."

"We are heartened that the Court of Appeals agreed with U.S. District Court Judge Patti Saris' early ruling approving the settlement," said Berman, noting that HBSS filed the first AWP case in 2002. "This settlement is perhaps the first time a consumer class was awarded treble damages in a case of this size."

Berman noted that the court's conclusion that no conflict of interest existed in the cy pre could have positive ramifications in other settlements in the AWP litigation.

Under the terms of the settlement, consumers who paid or contributed to the purchase of Zoladex through co-payments between December 1997 and 2003 are entitled to treble damages. Other class members will receive treble damages if money is left from the $24 million settlement. Experts agree that there will be sufficient funds to pay treble damages for all class members, with approximately $6.8 million remaining for cy pre funding.

The First Circuit ruling noted the District Court's work, applauding Judge Patti Saris, saying her court has "handled this matter with sensitivity and care." Judge Saris has presided over this case since 2001.

About Hagens Berman Sobol Shapiro

Hagens Berman Sobol Shapiro is a nationally recognized class-action and complex-litigation law firm based in Seattle with offices in Chicago, Boston, Los Angeles, Phoenix and San Francisco. Among recent successes, HBSS negotiated a $300 million settlement in the DRAM memory antitrust litigation, the largest antitrust settlement in U.S. history, recovered $340 million on behalf of Enron employees, and was part of the leadership team in the $3 billion Visa/MasterCard settlement. In pharmaceutical litigation, the firm's recent successes include a $350 million settlement with McKesson, more than $200 million with other parties in drug-pricing litigation, and a $150 million settlement regarding Lupron. HBSS represented Washington and 12 other states against the tobacco industry that resulted in the largest settlement in history. For a complete listing of HBSS cases, visit www.hbsslaw.com.

CASE 09-1196

CONTACT:

Steve Berman
206-623-7292
steve@hbsslaw.com

Mark Firmani
206-443-9357
Mark@firmani.com

SOURCE Hagens Berman Sobol Shapiro

KOS (TSX)

QUEBEC CITY, Nov. 20 /PRNewswire-FirstCall/ - Cossette Inc. reaffirmed today its support for the privatization transaction (the "Mill Road Transaction") with Mill Road Capital, L.P. ("Mill Road") and its recommendation that shareholders vote in favour thereof.

The management information circular in connection with the special general meeting of shareholders to be held on December 18, 2009 to consider the Mill Road Transaction has been filed with the Canadian provincial securities regulatory authorities and will be mailed to shareholders shortly. The circular contains a determination that the Mill Road Transaction is fair to Cossette's shareholders other than key senior management shareholders (the "Senior Executives") exchanging part of their Cossette shares for shares of a wholly-owned subsidiary of Mill Road (the "Public Shareholders") and is in the best interests of Cossette and the Public Shareholders. The circular also contains a recommendation to the shareholders of Cossette that they vote in favour of the Mill Road Transaction. The Board considered the following reasons for its recommendation:

    - Significant Premium. The all-cash consideration of $7.87 per share to
      be received pursuant to the Mill Road Transaction represents a premium
      of approximately 40% to the volume-weighted average trading price of
      the Shares for the 20 trading days ending on November 9, 2009 (the last
      trading day prior to the announcement of the Mill Road Transaction on
      November 10, 2009) and a premium of 142% over the unaffected share
      price of $3.25 on July 17, 2009 (the last trading day prior to Cosmos
      Capital Inc. ("Cosmos") announcing its unsolicited and non-binding
      proposal on July 20, 2009).

    - Extensive Strategic Review Process. Cossette conducted, with the
      assistance of its financial and legal advisors, a thorough review
      process to identify potential parties interested in acquiring all of
      the shares of Cossette or in participating in any other form of
      transaction with a view to maximizing value for all shareholders.

    - Fairness Opinions of RBC Capital Markets and BMO Capital Markets. RBC
      Capital Markets delivered to the Special Committee, and BMO Capital
      Markets delivered to the Board, opinions to the effect that, as of
      November 9, 2009, the consideration to be received pursuant to the Mill
      Road Transaction is fair from a financial point of view to the Public
      Shareholders (excluding Cosmos).

    - Reasonableness of the Merger Agreement. The terms and conditions of the
      Merger Agreement between Cossette and Mill Road, which were reviewed by
      the members of the Special Committee in consultation with its legal
      advisor, were determined to be fair and reasonable and were the result
      of arm's length negotiations between Cossette and Mill Road.

    - Superior Proposals. Under the Merger Agreement, the Board has retained
      the ability to consider a competing acquisition proposal not solicited
      by it which the Board believes, in the exercise of its fiduciary
      duties, represents, or could reasonably be expected to lead to, a
      superior proposal, and to terminate the Merger Agreement in the event
      of such superior proposal, subject to Mill Road's right to match or be
      paid a termination fee of $3.25 million. In addition, the support and
      voting agreements between Mill Road and the Senior Executives terminate
      automatically in the event of the termination of the Merger Agreement.

    - All-Cash Consideration. The payment of cash under the Mill Road
      Transaction will provide shareholders with immediate liquidity and
      certainty of value that is not subject to market fluctuations.

    - No Further Due Diligence. The Mill Road Transaction is not subject to
      further due diligence.

    - Support of the Mill Road Transaction by the Senior Executives. The
      Senior Executives, who hold shares representing approximately 30% of
      the outstanding shares, have each entered into a support and voting
      agreement pursuant to which they have agreed to vote their shares in
      favour of the Mill Road Transaction, subject to certain conditions.

    - Interests of Other Stakeholders. The nature of a board supported,
      negotiated transaction such as the Mill Road Transaction, together with
      Mill Road's agreement to cause Cossette to comply with its obligations
      under Cossette's retention program and to guarantee the performance of
      such obligations as part of the completion of the Mill Road
      Transaction, should address the concerns of Cossette's employees at a
      time of uncertainty and maintain stability and a high level of service
      at Cossette, which should in turn reassure Cossette's clients. In
      Cossette's line of business, its most valuable assets are its employees
      and its relationships with clients.

About Cossette

Cossette Inc. offers a full range of leading-edge communication services to clients of all sizes, including some of the most prestigious brands in the world. A customer-driven organization built around highly specialized business units, Cossette also offers Convergent Communications(TM), a unique working method that brings added value to the client by integrating various services offered by the Group, including strategic planning and research, advertising, media buying and channel planning, sales promotion, direct response, database and direct marketing, customer relationship management, interactive marketing and technology solutions, public relations, organizational communication and change management, sponsorship and alliance marketing, branding and design, ethnic marketing, business-to-business communications (B2B practices) and print and video production. Cossette has approximately 1,437 employees and offices in Quebec City, Montreal, Toronto, Vancouver, Halifax, New York, Irvine, Los Angeles, London and Shanghai.

SOURCE COSSETTE INC.