July 31, 2008
Encision Reports First Fiscal Quarter Results
Boulder, Colorado, July 31, 2008 — Encision Inc. (Amex: ECI), a medical
device company owning patented surgical technology that is emerging as
a standard of care in minimally-invasive surgery, reported its financial
results for its first quarter ended June 30, 2008.
Net sales for the first quarter of fiscal year 2009, the three-months
period ended June 30, 2008, totaled $3.09 million, representing a 16%
increase over net sales of $2.66 million for the prior fiscal year’s
first quarter. The Company recorded a net loss of $164 thousand or $.03
per share for the first quarter of fiscal year 2009 compared to a net
loss of $295 thousand or $.05 per share for the first quarter of fiscal
year 2008. Gross profit margin for the first quarter of fiscal year 2009
was 60.3% as compared to 61.2% for the first quarter of fiscal year 2008.
The gross profit margin decrease was primarily due to increased scrap
costs of 0.9% and increased sales of lower gross profit margin products.
The decrease was partially offset by a higher gross profit margin for
our internally manufactured disposable scissor inserts.
“Over the past two years, we have made major investments in our
company to increase long-term value for our shareholders,” said
Jack Serino, President and CEO of Encision Inc. “We have made a
major investment in manufacturing equipment, thereby reducing manufacturing
costs, expanding our manufacturing capabilities, and opening the possibility
of original equipment manufacturing. Additionally, we have made a major
investment in expanding our direct sales force to provide a focused selling
effort for our patented patient safety technology and to provide improved
customer service. Finally, we have made a major investment in developing
disposable product alternatives for all of our reusable products and
implementing redesigns to existing products to elevate them to best of
class status. It is our belief that the major investments we have made
will begin to benefit our shareholders in our current fiscal year.”
Encision Inc. designs, develops, manufactures and markets innovative
surgical devices that allow surgeons to optimize technique and patient
safety during a broad range of surgical procedures. Based in Boulder,
Colorado, the Company pioneered the development of patented AEM® Laparoscopic
Instruments to improve electrosurgery and reduce the chance for patient
injury in minimally invasive surgery.
In accordance with the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, the Company notes that statements in
this press release and elsewhere that look forward in time, which include
everything other than historical information, involve risks and uncertainties
that may cause actual results to differ materially from those indicated
by the forward-looking statements. Factors that could cause the Company's
actual results to differ materially include, among others, its ability
to increase net sales through the Company's distribution channels,
insufficient quantity of new account conversions, insufficient cash
to fund operations, scale up production to meet delivery obligations,
delay in developing new products and receiving FDA approval for such
new products and other factors discussed in the Company's filings with
the Securities and Exchange Commission.
CONTACT: Marcia
McHaffie, Encision Inc., 303-444-2600, mmchaffie@encision.com

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