Rochester Medical Reports Third Quarter Results

STEWARTVILLE, Minn., July 30 /PRNewswire-FirstCall/ -- Rochester Medical
Corporation (Nasdaq: ROCM) today announced operating results for its third
quarter ended June 30, 2009.

The Company reported sales of $8,908,000 for the current quarter compared to
$8,241,000 for the third quarter of last year. The Company also reported net
loss of $77,000 or ($.01) per diluted share for the quarter compared to net
income of $312,000 or $.02 per diluted share for the same period of last year.

The approximate 8% increase in sales (18% on a constant currency basis)
resulted from a 42% increase in Private Label Sales (42% increase on a
constant currency basis), partially offset by a 4% decrease in Rochester
Medical Branded Sales (8% increase on a constant currency basis).

Constant currency basis assumes current exchange rates for all periods in
order to exclude the impact of foreign exchange variations. In the third
quarter of 2009 the U.S. dollar was significantly stronger versus the pound
sterling, thus negatively affecting Rochester Medical Branded Sales growth
levels in actual U.S. dollars given the significant volume of our branded
product sales in the United Kingdom.

Net income adjusted for certain non-recurring unusual items and certain
recurring non-cash expenses, or "Non-GAAP Net Income" for the current quarter
was $245,000 or $.02 per diluted share compared to Non-GAAP Net Income of
$636,000 or $.05 per diluted share for the third quarter of last year. The
decrease for the current quarter on a Non-GAAP basis is primarily attributable
to a tax benefit of $654,000 taken in the third quarter of last year.

Regarding today's announcement, Rochester Medical's CEO and President Anthony
J. Conway said, "Once again, excluding exchange rate influences, the Company
had a very solid quarter. The overall 18% sales growth is very good, and we
are also pleased that U.S. & European Rochester Medical Branded Sales are up
15% overall on a constant currency basis. Branded sales in the rest of the
world were down 16%, and we believe that is simply a reflection of order
timing from certain International distributors. I would also note that the
42% increase in Private Label Sales reflects a significant upward quarterly
percentage aberration due to the timing of orders from large Private Label
customers."

Conway added, "I am very pleased with our progress in certain important areas.
We have made significant strides in U.S. Acute Care, with several major
opinion leading institutions now making product purchases, and with increasing
interest and commitment from other major institutions. We have just begun the
introduction of our new StrataSI( )Foley Catheter technology, and the initial
reception is very positive. We are now initiating ReleaseNF((R) )catheter
evaluations in the United Kingdom, and we are exploring potential partnerships
for introduction of the ReleaseNF Anti-Infection Foley Technology into
mainland Europe. Also, I'm pleased to report that our new MAGIC3(
)Intermittent Catheter Technology is doing very well in the U.S. and in the
United Kingdom, and is now being introduced in mainland Europe."

Rochester Medical has provided Non-GAAP Net Income in addition to earnings
calculated in accordance with generally accepted accounting principles (GAAP)
because management believes Non-GAAP Net Income provides a more consistent
basis for comparisons that are not influenced by certain charges and non-cash
expenses and are therefore helpful in understanding Rochester Medical's
underlying operating results. Similarly, constant currency represents
reported sales with the cost/benefit of currency movements removed.
Management uses the measure to understand the growth of the business on a
constant dollar basis, as fluctuations in exchange rates can distort the
underlying growth of the business both positively and negatively. While we
recognize that foreign exchange volatility is a reality for a global company,
we routinely review our company performance on a constant dollar basis, and we
believe this also allows our shareholders to understand better our Company's
growth trends.

Non-GAAP Net Income and constant currency are not measures of financial
performance under GAAP, and should not be considered an alternative to net
income or any other measure of performance or liquidity under GAAP. Non-GAAP
Net Income and constant currency are not comparable to information provided by
other companies. Non-GAAP Net Income and constant currency have limitations as
analytical tools and should not be considered in isolation or as a
substitution for analysis of our results as reported under GAAP.
Reconciliations of Net Income and Non-GAAP Net Income, and reconciliations of
sales under GAAP and sales on a constant currency basis, are presented at the
end of this press release.

This press release contains "forward-looking statements" that are based on
currently available information, operating plans and management's expectations
about future events and trends. They inherently involve risks and
uncertainties that could cause actual results to differ materially from those
predicted in such forward-looking statements, including the uncertainty of
estimated revenues and profits, the uncertainty of current domestic and
international economic conditions that could adversely affect the level of
demand for the Company's products and increased volatility in foreign exchange
rates, the uncertainty of market acceptance of new product introductions, the
uncertainty of gaining new strategic relationships or locating and
capitalizing on strategic opportunities, the uncertainty of timing of private
label sales revenues (particularly international customers), FDA and other
regulatory review and response times, and other risk factors listed from time
to time in the Company's SEC reports and filings, including, without
limitation, the section entitled "Risk Factors" in the Company's Annual Report
on Form 10-K for the year ended September 30, 2008 and subsequent reports on
Forms 10-Q and 8-K. Readers are cautioned not to place undue reliance on any
such forward-looking statements, which speak only as of the date they are
made. The Company undertakes no obligation to update any forward-looking
statements, whether as a result of new information, future events or
otherwise.

The Company will hold a quarterly conference call to discuss its earnings
report. The call will begin at 3:30 p.m. central time (4:30 p.m. eastern
time).

This call is being webcast by Thomson/CCBN and can be accessed at Rochester
Medical's website at www.rocm.com. To listen live to the conference call via
telephone, call:
Domestic: 888.679.8018, password 99367806
International: 617.213.4845, password 99367806
Pre Registration:
https://www.theconferencingservice.com/prereg/key.process?key=PGY64RKT9
Replay will be available for seven days at www.rocm.com or via telephone at:
Domestic: 888-286-8010, password 41138193
International: 617-801-6888, password 41138193

Individual investors can listen to the call at www.fulldisclosure.com,
Thomson/CCBN's individual investor portal, powered by StreetEvents.
Institutional investors can access the call via Thomson's password-protected
event management site, StreetEvents (www.streetevents.com).

Rochester Medical Corporation develops, manufactures, and markets disposable
medical catheters and devices for urological and continence care applications.
The Company markets under its own Rochester Medical((R)) brand and under
existing private label arrangements.

For further information, please contact Anthony J. Conway, President and Chief
Executive Officer of Rochester Medical Corporation at (507) 533-9600. More
information about Rochester Medical is available on its website at
http://www.rocm.com.

ROCHESTER MEDICAL CORPORATION
Reconciliation of Reported GAAP Revenue to Non-GAAP Revenue in Constant
Currency
For the Three and Nine months ended
June 30, 2009

(unaudited) (unaudited)
Three months ended Nine months ended
June 30, June 30,
-------- --------
2009 2008 2009 2008
---- ---- ---- ----

GAAP Sales as Reported $8,908,416 $8,241,232 $25,789,530 $25,679,758
========== ========== =========== ===========
Exchange rate as
Reported 1.55 1.98 1.52 2.00
==== ==== ==== ====

Constant Currency Sales $8,908,416 $7,550,514 $25,789,530 $23,377,618
========== ========== =========== ===========
(1) Exchange rate used
for Constant Currency
Purposes 1.55 1.55 1.52 1.52
==== ==== ==== ====

Net Effect of Constant
Currency Illustration $- $(690,718) $- $(2,302,140)
=== ========= === ===========

(1) For illustrative purposes Constant currency translates prior period
foreign sales at current exchange rates. For Rochester Medical Corporation
this is the conversion rate of pound sterling to US dollars. The rate
represents the average exchange rate for the respective three or nine
month period.

ROCHESTER MEDICAL CORPORATION
Reconciliation of Reported GAAP Net Income to Non-GAAP Net Income
For the Three and Nine months ended
June 30, 2009 and 2008

(unaudited) (unaudited)
Three months ended Nine months ended
June 30, June 30,
-------- --------
2009 2008 2009 2008
---- ---- ---- ----

GAAP Net Income (loss) as
Reported $(77,000) $312,000 $338,000 $417,000
======== ======== ======== ========

Diluted Earnings (loss)
Per Share as Reported $(0.01) $0.02 $0.03 $0.03
====== ===== ===== =====

Adjustments for non-recurring
unusual items:
Settlement income after
taxes (1) - - (637,000) -
--- --- -------- ---
Subtotal - - (637,000) -

Adjustments for recurring
non-cash expenses:
Intangible
amortization (2) 129,000 129,000 386,000 386,000
FAS 123R compensation
expense (3) 193,000 195,000 683,000 713,000
------- ------- ------- -------
Subtotal 322,000 324,000 1,069,000 1,099,000
------- ------- --------- ---------

Non-GAAP Net Income $245,000 $636,000 $770,000 $1,516,000
======== ======== ======== ==========

Non-GAAP Diluted EPS $0.02 $0.05 $0.06 $0.12
===== ===== ===== =====

Weighted Average Shares -
Diluted 12,603,331 12,550,317 12,637,414 12,561,535

(1) Settlement income received January 15, 2009 from Covidien Ltd. of
$1,000,000, $637,000 after taxes of $363,000. This adjustment reduces
net income for amounts received net of taxes paid in connection with
one-time settlement of certain litigation. These amounts were recorded
in Other Income in the Statement of Operations for the fiscal year ended
September 30, 2009.

(2) Amortization of the intangibles acquired in June 2006 asset
acquisition from Coloplast AS and Mentor Corporation. Management
believes these assets are appreciating. This adjustment adds back
amortization expense for the three and nine months ended June 30, 2009
and 2008 related to certain intangibles. The gross amount of amortization
is $163,000 per quarter after taxes of $34,000 for a net amount of
$129,000.

(3) Compensation expense mandated by SFAS 123R. This adjustment adds
back the compensation expense recorded for stock options granted to
employees and directors that vested during the three and nine months
ended June 30, 2009 and 2008. The gross amount of compensation expense
for the three months ended June 30, 2009 and 2008 is $293,000 and
$295,000 net of taxes of $100,000 and $100,000 for net amounts of
$193,000 and $195,000 respectively. The gross amount of compensation
expense for the nine months ended June 30, 2009 and 2008 is $1,035,000
and $1,081,000 net of taxes of $352,000 and $368,000 for net amounts of
$683,000 and $713,000 respectively.

Rochester Medical Corporation
Press Release - F09 Third Quarter

Condensed Balance Sheets

(unaudited)
June 30, September 30,
2009 2008
---- ----
Assets

Current Assets
Cash and equivalents $5,342,272 $8,508,000
Marketable securities 29,660,699 28,493,648
Accounts receivable 6,000,332 6,009,023
Inventories 9,696,882 8,745,873
Prepaid expenses and other assets 892,629 1,110,291
Deferred income tax 1,561,510 1,143,931
--------- ---------

Total current assets 53,154,324 54,010,766

Property and equipment, net 9,741,072 9,883,329
Deferred income tax 955,769 831,299
Patents, net 211,884 227,358
Intangible assets, net 6,226,817 6,860,213
Goodwill 4,779,846 5,169,661
--------- ---------

Total Assets $75,069,712 $76,982,626
=========== ===========

Liabilities and Stockholders' Equity

Current liabilities:
Accounts payable $1,605,780 $2,127,470
Accrued expenses 1,335,452 1,170,654
Short-term debt 2,925,566 1,940,292
--------- ---------

Total current liabilities 5,866,798 5,238,416

Long-term liabilities
Other long term liabilities 288,435 239,496
Long-term debt 1,002,344 3,806,185
--------- ---------

Total long term liabilities 1,290,779 4,045,681

Stockholders' equity 67,912,135 67,698,529
---------- ----------

Total Liabilities and Stockholders' Equity $75,069,712 $76,982,626
=========== ===========

Rochester Medical Corporation
Press Release - F09 Third Quarter

Summary Statements Of Operations

(unaudited) (unaudited)
Three months ended Nine months ended
June 30, June 30,
-------- --------
2009 2008 2009 2008
---- ---- ---- ----

Sales $8,908,416 $8,241,232 $25,789,530 $25,679,758

Cost of sales 4,724,893 4,568,736 13,266,735 13,594,196
--------- --------- ---------- ----------

Gross profit 4,183,523 3,672,496 12,522,795 12,085,562
Gross profit % 47% 45% 49% 47%

Costs and expense:
Marketing and selling 2,541,552 2,349,911 7,555,936 6,954,582
Research and
development 352,248 202,092 969,011 735,292
General and
administrative 1,451,041 1,578,410 4,574,296 5,210,295
--------- --------- --------- ---------

Total operating
expenses 4,344,841 4,130,413 13,099,243 12,900,169
--------- --------- ---------- ----------

Loss from operations (161,318) (457,917) (576,448) (814,607)

Other income (expense)

Interest income 39,964 232,705 241,490 1,041,692
Interest expense (54,586) (116,563) (218,714) (394,887)
Other income - - 1,200,442 -
--- --- --------- ---

Net income (loss)
before income taxes (175,940) (341,775) 646,770 (167,802)

Income tax expense
(benefit) (99,040) (654,023) 308,843 (584,746)
------- -------- ------- --------

Net income (loss) $(76,900) $312,248 $337,927 $416,944
======== ======== ======== ========

Earnings (loss) per
common share - Basic $(0.01) $0.03 $0.03 $0.04
====== ===== ===== =====

Earnings (loss) per
common share - Diluted $(0.01) $0.02 $0.03 $0.03
====== ===== ===== =====

Weighted Average Shares:
Basic 12,025,966 11,832,240 12,029,629 11,794,733
========== ========== ========== ==========

Weighted Average Shares:
Diluted 12,025,966 12,550,317 12,637,414 12,561,535
========== ========== ========== ==========

SOURCE Rochester Medical Corporation

Anthony J. Conway, President and Chief Executive Officer of Rochester Medical
Corporation, +1-507-533-9600