Encision Reports First Fiscal Quarter Results

Friday, August 1, 2008 General News
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BOULDER, Colo., July 31 Encision Inc.(Amex: ECI), a medical device company owning patented surgical technology thatis emerging as a standard of care in minimally-invasive surgery, reported itsfinancial results for its first quarter ended June 30, 2008.

Net sales for the first quarter of fiscal year 2009, the three-monthsperiod ended June 30, 2008, totaled $3.09 million, representing a 16% increaseover net sales of $2.66 million for the prior fiscal year's first quarter. TheCompany recorded a net loss of $164 thousand or $.03 per share for the firstquarter of fiscal year 2009 compared to a net loss of $295 thousand or $.05per share for the first quarter of fiscal year 2008. Gross profit margin forthe first quarter of fiscal year 2009 was 60.3% as compared to 61.2% for thefirst quarter of fiscal year 2008. The gross profit margin decrease wasprimarily due to increased scrap costs of 0.9% and increased sales of lowergross profit margin products. The decrease was partially offset by a highergross profit margin for our internally manufactured disposable scissorinserts.

"Over the past two years, we have made major investments in our company toincrease long-term value for our shareholders," said Jack Serino, Presidentand CEO of Encision Inc. "We have made a major investment in manufacturingequipment, thereby reducing manufacturing costs, expanding our manufacturingcapabilities, and opening the possibility of original equipment manufacturing.Additionally, we have made a major investment in expanding our direct salesforce to provide a focused selling effort for our patented patient safetytechnology and to provide improved customer service. Finally, we have made amajor investment in developing disposable product alternatives for all of ourreusable products and implementing redesigns to existing products to elevatethem to best of class status. It is our belief that the major investments wehave made will begin to benefit our shareholders in our current fiscal year."

Encision Inc. designs, develops, manufactures and markets innovativesurgical devices that allow surgeons to optimize technique and patient safetyduring a broad range of surgical procedures. Based in Boulder, Colorado, theCompany pioneered the development of patented AEM(R) Laparoscopic Instrumentsto improve electrosurgery and reduce the chance for patient injury inminimally invasive surgery.

In accordance with the safe harbor provisions of the Private SecuritiesLitigation Reform Act of 1995, the Company notes that statements in this pressrelease and elsewhere that look forward in time, which include everythingother than historical information, involve risks and uncertainties that maycause actual results to differ materially from those indicated by the forward-looking statements. Factors that could cause the Company's actual results todiffer materially include, among others, its ability to increase net salesthrough the Company's distribution channels, insufficient quantity of newaccount conversions, insufficient cash to fund operations, scale up productionto meet delivery obligations, delay in developing new products and receivingFDA approval for such new products and other factors discussed in theCompany'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

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