Lancer Orthodontics Announces Financial Year-End Results; Reports over 88% Increase in Net Income & over 7 Fold Increase in Net Cash Provided by Operating Activities

Business Wire, Sept 22, 2003

Business Editors

SAN MARCOS, Calif.--(BUSINESS WIRE)--Sept. 22, 2003

Lancer Orthodontics, Inc. (OTCBB:LANZ) today announced that its fiscal year ended May 31, 2003 was a fundamental turnaround year for the Company.

Lancer reported a net income of $71,175 or $0.03 per share in fiscal 2003, vs. a net income of $37,784 or $0.02 per share in fiscal 2002. Net sales for fiscal year 2003 were $5,887,898, compared to $6,022,331 in 2002, a decrease of $134,433.

The Company also announced that net cash provided by operating activities increased to $656,677 for the fiscal year 2003 vs. net cash provided by operating activities of $91,150 for fiscal 2002.

"We are pleased with results of our planned turnaround for the Company and now have the resources to implement our strategy for aggressive sales growth," said Zackary Irani, Lancer CEO.

Lancer Orthodontics (OTCBB:LANZ) develops, manufactures and markets state-of-the-art orthodontic products such as bands, brackets and buccal tubes worldwide.

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 Lancer Orthodontics) contains statements that are forward-looking; such as statements relating to intended launch dates, expansion, significant growth, expected orders, cost saving programs, sales generating programs, 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 Lancer. 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.