DiaSys Reports Record Second Quarter And Six-Month Sales; Adopts Shareholder's Rights Plan

Business Wire, Feb 15, 2001

Business Editors & Health/Medical Writers

WATERBURY, Conn.--(BW HealthWire)--Feb. 15, 2001

DiaSys Corporation (AMEX:DYX) today reported the results of operations for the three, and six-month periods ended December 31, 2000.

Total revenue for the three-month period ended December 31, 2000 was $594,579, an increase of 97% over the same period in 1999. Total revenue for the six-month period ended December 31, 2000 was $959,043, an increase of 82% over the same period for the prior year. Net loss for the three-month period ended December 31, 2000 was $214,472 (inclusive of approximately $80,000 in costs associated with the Company's merger and acquisition plan, listing on AMEX, and accrued income taxes for DiaSys Europe, Ltd) compared to $156,322 for the same period in 1999. Net loss for the six-month period ended December 31, 2000 was $453,599 (inclusive of approximately $110,000 in costs associated with the Company's merger and acquisition plan, listing on AMEX, and accrued income taxes for DiaSys Europe, Ltd) compared to $310,694 for the same period in the prior year.

The Company said that its sales growth was due to the recent acquisition of Intersep Limited (private); the continued implementation of its cooperation agreement with Bayer Corporation (NYSE:BAY); and, commencement of its strategic distribution plan with Allegiance Healthcare Corporation, a subsidiary of Cardinal Health, Inc (NYSE:CAH). The Company then said that initial market reaction to its newly released (January 2001) workstation-system for automated ova and parasite analysis is strong, and that the Company is in the process of introducing the new workstation-systems in Europe and China.

Separately, the Company announced that its Board of Directors has adopted a Shareholder's Rights Plan pursuant to which the Board declared a dividend of one Purchase Right for each share of DiaSys Common Stock outstanding to DiaSys shareholders of record at the close of business on February 6, 2001. The Company said that the Rights Plan was not adopted in response to any effort to acquire control of DiaSys.

Under the Plan, DiaSys will issue one Right for each outstanding share of its Common Stock held by shareholders of record at the close of business on February 6, 2001. The Rights will become exercisable upon the earlier of: (i) the tenth day after a public announcement that a person or group has acquired, or obtained the right to acquire 25% or more of the Company's outstanding Common Stock; or, (ii) the tenth business day after the date of the commencement of, or first public announcement of the intent of any person or group to commence, a tender or exchange offer which would result in such person or group acquiring 15% or more of the Company's outstanding Common Stock (a "Flip-in-Event"). If a Flip-in-Event occurs, then each Right will entitle its holder to purchase for $90.00 a number of Common Shares having a then present market value of $180. DiaSys will be generally entitled to redeem the Rights at $.001 per Right prior to the expiration of the Rights at any time before the tenth day following the public announcement: (i) that a person or group has acquired 25% or more of the Company's outstanding Common Stock; or, (ii) of the intent of any person or group to commence a tender or exchange offer which would result in such persons or group acquiring 15% or more of the Company's outstanding Common Stock.

DiaSys Corporation designs, develops, manufactures and distributes medical laboratory instrumentation and consumables with applications in urinalysis, microbiology and cytology. DiaSys is a registered trademark of DiaSys Corporation.

The foregoing press release includes "forward looking statements" within the meaning of, and made pursuant to, the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company or events, or timing of events, relating to the Company to materially differ from those expressed or implied by such forward looking statements. DiaSys refers interested parties to its most recent Annual Report on form 10-KSB and other SEC filings for a complete description of, and discussions about, the Company.