Careside Reports Third Quarter, Nine-Month Results


CULVER CITY, Calif., Nov. 5, 2001 (PRIMEZONE) -- Careside, Inc. (AMEX:CSA), a provider of point-of-care blood analysis instrumentation and records management, today announced its results for the third quarter and nine months ended September 30, 2001. During the quarter, Careside's continued shift to a sales and marketing focus resulted in a reduced net loss to common shareholders for the third quarter of $3.3 million, or $0.29 loss per share, from a net loss of $4.1 million, or $0.46 loss per share, for the same period last year. Year to date, the net loss to common shareholders totaled $15.1 million, or $1.32 loss per share, compared to a year to date net loss of $12.2 million, or $1.42 loss per share, in the prior year. On a pro forma basis, the year to date net loss to common shareholders excluding imputed non-cash dividend calculations associated with the beneficial conversion feature of the Company's Series C Preferred Stock and accreted dividend charges was $10.4 million, or $0.91 loss per share. Revenues for the third quarter and nine months of this year were $305,000 and $681,000 respectively, compared to $108,000 and $636,000 in the prior year periods.

"The third quarter and early October efforts brought the number of placements of the CARESIDE Analyzer to over 50. In addition to placed units, orders for 13 additional units have been received. This order backlog awaiting delivery scheduling includes several orders from distributors trained earlier this year. Over the last few months Careside sales personnel have worked with approximately 400 distributor representatives from Fisher Scientific, Labsco, and several regional distributors," said Chairman and CEO W. Vickery Stoughton. "We are beginning to see the fruits of these efforts. In addition, we have already begun training sales representatives from Physician Sales & Service (PSS) under the agreement we recently announced. We expect that the combined efforts of these sales representatives in addition to our own sales force will bring increasing orders in the fourth quarter. We now expect to have placed between 75 and 80 Analyzers in total by year end.

"The relationship with PSS will broaden our reach into the physician office market which is one of our key targets. The investment in time and effort by our staff in the fourth quarter is expected to leverage higher results in 2002. We expect that we will be able to achieve the 700 total placements previously forecast by year end 2002."

Revenues in the quarter were derived primarily from sales of the Company's CARESIDE Analyzer and cartridges. Revenues do not reflect placements of instruments made during the period for which the customer has been given a trial period prior to final acceptance or for which a formal acceptance was not received. In the prior year, revenues were primarily derived from sales of the H2000 Hematology Analyzer to international distributors. The difference in revenues and accounts receivable reflect this shift in marketing efforts.

About Careside

Careside, Inc. markets a proprietary blood testing system including its CARESIDE Analyzer, a companion hematology system called the H-2000 Hematology Analyzer, and its CARESIDE Connect record management system linking patient test results into a single report. The CARESIDE Analyzer provides a cost-effective and efficient means of measuring blood chemistry, electrochemistry, and coagulation function near the patient by producing accurate test results within 15 minutes. Careside, Inc. is one of the world's leading developers of advanced point-of-care blood testing technology.

Safe Harbor: Statements in this press release regarding Careside, Inc. which are not historical facts, including statements regarding expansions in sales efforts and increasing placements in 2001 and 2002, are forward-looking statements that involve risks and uncertainties. Key factors which may impact these statements include product acceptance, market forces and other challenges inherent in sales, marketing and manufacturing, and the other factors discussed in the Company's prospectus that was effective dated October 2000. The Company undertakes no obligation to update forward-looking statements. Please see the risk factors listed from time to time in the Company's prospectus and reports on file with the SEC.


                               CARESIDE, INC.
                   Abbreviated Statement of Operations
                        (in thousands) (unaudited)

                          Three months ended       Nine months ended
                             September 30,           September 30,
                           2000        2001        2000        2001

 SALES, net              $   108     $   305     $   636     $   681
 COST OF SALES                59       1,046         311       3,081
                         -------     -------     -------     -------
 GROSS PROFIT                 49        (741)        325      (2,400)

 OPERATING EXPENSES:
  Research and
   development
   costs-Product           2,427         675       7,199       2,289
  Research and
   development
   costs-IT                  154         316         389         767
  Sales and
   marketing                 921         919       2,858       2,782
  General and
   administrative            440         473       1,560       1,433
  Goodwill Amortization      142         142         425         425
                         -------     -------     -------     -------
  Total operating
   expenses                4,084       2,525      12,431       7,696
                         -------     -------     -------     -------
 OPERATING LOSS:          (4,035)     (3,266)    (12,106)    (10,096)

 INTEREST INCOME
  (EXPENSE):                 (66)        (74)        (21)       (245)
                         -------     -------     -------     -------

 NET LOSS                $(4,101)    $(3,340)   $(12,127)   $(10,341)
                         =======     =======    ========    ========

 Beneficial conversion
  feature                     --          --          --       3,799
 Dividends on
  Preferred Stock              2           2          54         942
                         -------     -------     -------     -------

 NET LOSS to common
  shareholders           $(4,103)    $(3,342)   $(12,181)   $(15,082)
                         =======     =======     =======     =======

 NET LOSS PER SHARE to
  common shareholders    $ (0.46)    $ (0.29)   $  (1.42)   $  (1.32)
                         =======     =======     =======     =======

 Pro Forma NET LOSS
  PER SHARE excluding
  non-cash charges       $ (0.46)    $ (0.29)   $  (1.42)   $  (0.91)
                         =======     =======     =======     =======

 Weighted average
  number of common
  stock and common
  stock equivalents
  outstanding              8,988      11,665       8,553      11,393
                         =======     =======     =======     =======



                      Abbreviated Balance Sheets
                            (in thousands)

                           December 31, 2000      September 30, 2001
                                                         (unaudited)
 ASSETS
  CURRENT ASSETS
   Cash and cash equivalents         $ 1,789                 $ 2,263
   Accounts Receivable                   104                     237
   Inventories                         2,698                   2,673
   Prepaid expenses and other            174                     562
  PROPERTY AND
   EQUIPMENT (net)                     5,643                   4,292
  DEPOSITS                                24                      24
  GOODWILL (net)                       2,231                   1,806
                                   ---------               ---------

  Total Assets                       $12,663                 $11,857
                                   =========               =========

 LIABILITIES AND
  STOCKHOLDER'S EQUITY
   CURRENT LIABILITIES                 4,767                   4,774
                                   ---------               ---------
   LONG-TERM DEBT                      1,192                     749
                                   ---------               ---------
   MANDITORILY
    REDEEMABLE PREF. STOCK             1,054                       -
                                   ---------               ---------
   STOCKHOLDER'S EQUITY                5,650                   6,334
                                   ---------               ---------
   Total liabilities and
    stockholder's equity             $12,663                 $11,857
                                   =========               =========

            

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