Encision Reports First Fiscal Quarter Results

BOULDER, Colo., July 31 /PRNewswire-FirstCall/ -- Encision Inc.
(Amex: ECI), 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 quarter ended June 30, 2008.
Net sales for the first quarter of fiscal year 2009, the three-months
period ended June 30, 2008, totaled $3.09 million, representing a 16% increase
over net sales of $2.66 million for the prior fiscal year's first quarter. The
Company recorded a net loss of $164 thousand or $.03 per share for the first
quarter of fiscal year 2009 compared to a net loss of $295 thousand or $.05
per share for the first quarter of fiscal year 2008. Gross profit margin for
the first quarter of fiscal year 2009 was 60.3% as compared to 61.2% for the
first quarter of fiscal year 2008. The gross profit margin decrease was
primarily due to increased scrap costs of 0.9% and increased sales of lower
gross profit margin products. The decrease was partially offset by a higher
gross profit margin for our internally manufactured disposable scissor
inserts.
"Over the past two years, we have made major investments in our company to
increase long-term value for our shareholders," said Jack Serino, President
and CEO of Encision Inc. "We have made a major investment in manufacturing
equipment, thereby reducing manufacturing costs, expanding our manufacturing
capabilities, and opening the possibility of original equipment manufacturing.
Additionally, we have made a major investment in expanding our direct sales
force to provide a focused selling effort for our patented patient safety
technology and to provide improved customer service. Finally, we have made a
major investment in developing disposable product alternatives for all of our
reusable products and implementing redesigns to existing products to elevate
them to best of class status. It is our belief that the major investments we
have made will begin to benefit our shareholders in our current fiscal year."
Encision Inc. designs, develops, manufactures and markets innovative
surgical devices that allow surgeons to optimize technique and patient safety
during a broad range of surgical procedures. Based in Boulder, Colorado, the
Company pioneered the development of patented AEM(R) Laparoscopic Instruments
to improve electrosurgery and reduce the chance for patient injury in
minimally invasive surgery.
In accordance with the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, the Company notes that statements in this press
release and elsewhere that look forward in time, which include everything
other than historical information, involve risks and uncertainties that may
cause actual results to differ materially from those indicated by the forward-
looking statements. Factors that could cause the Company's actual results to
differ materially include, among others, its ability to increase net sales
through the Company's distribution channels, insufficient quantity of new
account conversions, insufficient cash to fund operations, scale up production
to meet delivery obligations, delay in developing new products and receiving
FDA approval for such new products and other factors discussed in the
Company's filings with the Securities and Exchange Commission.
CONTACT: Marcia McHaffie, Encision Inc., 303-444-2600,
mmchaffie@encision.com

Encision Inc.
Condensed Statements of Operations
(Unaudited)
(Amounts in thousands, except per share information)

June 30, June 30,
Three Months Ended 2008 2007
NET SALES $3,094 $2,659
COST OF SALES 1,229 1,031
GROSS PROFIT 1,865 1,628
OPERATING EXPENSES:
Sales and marketing 1,374 1,214
General and administrative 367 372
Research and development 289 330
Total operating expenses 2,030 1,916
OPERATING LOSS (165) (288)
Interest and other income (expense), net 1 (7)
LOSS BEFORE PROVISION FOR INCOME TAXES (164) (295)
Provision for income taxes -- --
NET LOSS $(164) $(295)
Net loss per share-basic and diluted $(0.03) $(0.05)

Encision Inc.
Condensed Balance Sheets
(Amounts in thousands)

June 30, March 31,
2008 2008
(unaudited) (audited)
ASSETS
Cash and cash equivalents $46 $71
Accounts receivable, net 1,274 1,453
Inventories, net 2,050 2,271
Prepaid expenses 147 99
Total current assets 3,517 3,894
Equipment, net 800 798
Patents, net 200 199
Other assets 46 53
TOTAL ASSETS $4,563 $4,944
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable $611 $537
Accrued compensation 267 392
Other accrued liabilities 437 481
Total current liabilities 1,315 1,410
Long-term debt 433 606
Common stock and additional paid-in capital 19,438 19,387
Accumulated (deficit) (16,623) (16,459)
Total shareholders' equity 2,815 2,928
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $4,563 $4,944

SOURCE Encision Inc.

Marcia McHaffie of Encision Inc., +1-303-444-2600, mmchaffie@encision.com