Prism Medical Ltd. (PM:TSX-VEN) Reports Second Quarter Financial Results

TORONTO, July 23 /CNW/ - Prism Medical Ltd. ("Prism" or "the Company") (PM:TSX-VEN) today announced its results for the second quarter ended May 31, 2010.

During the second quarter of 2010, revenues were $17.2 million compared to $17.3 million in 2009. Sales in the UK increased 36% on a British Pound Sterling ("GBP") basis and 14% after incorporating the impact of a decline in the GBP relative to the Canadian dollar. Sales in Canada increased 30% as compared to the same period in 2009 mainly as a result of strong institutional demand partially driven by government funding. Sales in the US decreased 18% on a US dollar basis and decreased 30% after incorporating the decline in the US dollar relative to the Canadian dollar. The Company continues to focus its efforts on the US marketplace through enhanced sales initiatives and geographical coverage.

For the six months ended May 31, 2010, sales were $31.7 million compared to $32.0 million during the comparable period in 2009. Sales in the UK increased 39% in GBP and 20% after incorporating the impact of a decline in the GBP relative to the Canadian dollar. Sales in Canada decreased 15% as compared to the same period in 2009. Sales in the US decreased 10% in US dollars and decreased 22% after incorporating the decline in the US dollar relative to the Canadian dollar.

In the second quarter of 2010, gross profit was $17.2 million as compared to $17.5 million over the same period in 2009 largely as a result of a 1.2 point reduction in overall gross margin percentage. Selling, general and administrative expenses were $5.3 million as compared to $4.7 million over the same period last year primarily as a result of incorporating the operating costs of new acquisitions, expenses directly attributable to the transitioning of the assembly plant to the US and costs incurred in pursuing strategic alternatives to increase shareholder liquidity and maximize shareholder value.

For the six months ended May 31, 2010, gross profit was $13.7 million as compared to $13.5 million in the comparable 2009 period, and selling, general and administrative expenses were $10.7 million versus $8.9 million in the comparable 2009 period.

Net income for the second quarter of 2010 decreased to $0.8 million or $0.12 per share on a diluted basis as compared to $1.3 million or $0.20 per share on a diluted basis for the same period in 2009. For the six months ended May 31, 2010, net income was $1.27 million or $0.20 per share on a diluted basis as compared to $2.44 million or $0.35 per share on a diluted basis in the comparable 2009 period.

Prism Medical Ltd. is a provider of durable medical equipment and related services to the mobility disadvantaged in Canada, the USA and the United Kingdom. While Prism's history dates back to 1996, Prism's subsidiaries and divisions have been servicing the mobility disadvantaged since the mid 1980s in their homes, long-term care facilities and acute care facilities. Prism includes Waverley Glen, North America's premier lifting, handling and repositioning aid manufacturer with distribution across Canada and the US; Patient Lifts of New England and Access Solutions with distribution across the northeastern USA; Westholme, Care Free Lifting & Handling, Test Valley Mobility, Saluss, Liftech and Assured Patient Lifts, leading distributors of moving and handling products in the UK; and Freeway Health Care, a UK-based manufacturer of ceiling hoists and shower chairs.

Forward-looking Information

Certain statements in this release may constitute forward-looking statements. Such forward-looking statements involve risks, uncertainties and other factors, which may cause actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements.

SOURCE Prism Medical Ltd.

For further information: For further information: William G. Edwards, Chief Financial Officer, Prism Medical Ltd., Tel: (416) 260-2145 ext. 230, Fax: (416) 260-9195, wgedwards@prismmedicalltd.com, www.prismmedicalltd.com

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Prism Medical Ltd.

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