MTS Announces Financial Results for Fourth Quarter and Fiscal Year Ended March 31, 2009

Business Wire, June 16, 2009

“MedLocker® sales finished strong for the 2009 fiscal year, and we expect that this product will generate increased gross profit in fiscal 2010. In addition, we are optimistic that our MedTimes® pilot sites will help validate the positive return on investment that pharmacies can achieve, and thereby, begin to contribute to our Medication Administration Systems segment.

Siegel continued, “We consider fiscal year 2009 a very successful year, and we are proud of our accomplishments in terms of growth, profitability and cash flow during very challenging economic times.”

The Company also announced today that it has discontinued its practice of providing revenue and EPS guidance for future periods.

However, the Company expects operating margins in its Consumables segment to increase in fiscal year 2010, compared with fiscal year 2009, primarily due to the increased product margin that we expect to result from growth in net sales for this segment in both the U.S. and Europe.

Although the Company expects that its Packaging Automation segment will continue to operate at a loss in fiscal year 2010, we believe the value of this segment is inherent in its ability to support and grow the recurring revenue and profitability of the Consumables segment. The Company intends to continue to invest in its Medication Administration Systems segment and plans to evaluate it on an ongoing basis as pilot sites progress.

MTS also announced today that it has entered into an exclusive agreement with Microfil LLC to license and develop the Microfil automated robotic medication dispensing system. Founded in 2002 by its CEO Rusty Baker, Microfil has designed an under-the-counter pill dispensing system to store, retrieve, fill by count and label prescription medications into a vial. The system is designed for use in high volume retail pharmacies, and six systems to date have been in operation in that market for several years. The terms of the agreement grant MTS exclusive rights to Microfil’s intellectual property and to manufacture and sell the systems. During the initial phase of the agreement, the parties will cooperate to fully commercialize the product and begin to manufacture and sell systems to retail pharmacies.

Siegel said, “We are pleased to begin this relationship with Microfil. Rusty Baker developed the Baker Cell equipment that was widely used by retail and central fulfillment pharmacies prior to being acquired by a large pharmaceutical wholesaler in 1998. Microfil has now developed a product that we believe has a competitive advantage due to its space saving, under-the-counter profile and improved technology. We are optimistic that our manufacturing, assembly, installation, training and support infrastructure can be leveraged to provide MTS an opportunity to compete in what we believe to be a substantial market in the U.S.”