Biomerica Announces Year-End Financial Results; Reports 4th quarter profit; Diagnostic sales increase over 22% for the year

Business Wire, Sept 16, 2003

Business Editors/Health/Medical Writers

NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Sept. 16, 2003

Biomerica, Inc. (OTC BB: BMRA) today reported a consolidated net loss of ($255,033), or ($0.05) per share (basic and diluted) for the year ended May 31, 2003, down from a consolidated net loss of ($430,683), or ($0.08) per share (basic and diluted) in the previous fiscal year. Consolidated net sales for Biomerica and its subsidiary, Lancer Orthodontics, Inc. (OTC BB: LANZ), totaled $9.1 million in FY 2003 compared to $8.6 million in FY 2002. These figures represent approximately a 6% increase in consolidated sales and a decrease of $175,650 (or 41%) in the consolidated loss.

Consolidated cash flows provided from operating activities were $512,536 for the year ended May 31, 2003 compared to cash flows used in operating activities of ($131,073) for the previous fiscal year.

The Company also reported a consolidated profit of $91,585 for the fourth quarter ended May 31, 2003 as compared to a consolidated profit of $41,684 in the same period in the prior fiscal year. Sales for the quarter then ended were $2,542,524 as compared to $2,129,275 in same period in the prior year, which represents an increase of $413,249, or 19%.

About Biomerica (OTC BB: BMRA)

Biomerica, Inc. (http://www.biomerica.com) is a global medical technology company, based in Newport Beach, CA. The Company's diagnostics division manufactures and markets advanced diagnostic products used at home, in hospitals, and in physicians' offices for the early detection of significant medical conditions and serious diseases.

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by Biomerica) contains statements that are forward-looking; such as statements relating to intended launch dates, sales potential, significant benefits, market size, growth of business, favorable positions, expansion, expected orders, leading market positions, anticipated future revenues or production volume of the company, success of product and new product offerings. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future, and accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of Biomerica. The potential risks and uncertainties include, among others, fluctuations in the Company's operating results due to its business model and expansion plans, downturns in international and or national economies, the Company's ability to raise additional capital, the competitive environment in which the Company will be competing, and the Company's dependence on strategic relationships. The Company is under no obligation to update any forward-looking statements after the date of this release.