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CryoLife, Inc. Reports Record Revenues And Earnings For The First Quarter Of 1998

April 21, 1998 at 12:00 AM EDT

ATLANTA, April 21 -- CryoLife, Inc. (NYSE:CRY), a leader in human tissue and cell preservation, and a manufacturer and distributor of specialty cardiovascular and vascular medical instruments and devices, announced record revenues and earnings for the first quarter ended March 31, 1998.

Revenues for the first quarter of 1998 were $14,625,000, a 40 percent increase over the previous first quarter record of $10,413,000, set in 1997.

Net income for the first quarter of 1998 was $1,172,000, a 23 percent increase, compared to the previous first quarter record of $952,000, set in 1997. Earnings per common share in the first quarter of 1998 were $0.12 basic and $0.12 diluted, compared with $0.10 basic and $0.10 diluted in the first quarter of 1997.

Steven G. Anderson, President and Chief Executive Officer, CryoLife, Inc., noted, "Record revenues and net income reflect the growing demand and acceptance in the medical community of cryopreserved human tissues for transplant. Our financial performance in the quarter also benefited from the acquisition on March 5, 1997 of Ideas for Medicine(R), Inc., a manufacturer of single-use vascular and cardiovascular medical devices, and the expanding surgical application of the CryoLife-O'Brien(TM) porcine heart valves in the European market."

On April 3, 1998, CryoLife successfully completed a follow-on public offering of 2,588,000 common shares which became effective March 30, 1998, and on April 16, 1998, an over-allotment option was exercised for an additional 387,500 shares. The oversubscribed offering provided the Company with net proceeds of $45,400,000. The proceeds from the offering are being designated for repayment of indebtedness, expansion of facilities, general corporate purposes and potential acquisitions. Managing underwriters for the offering were SBC Warburg Dillon Read of New York and Piper Jaffray of Minneapolis.

Founded in 1984, CryoLife, Inc., is a leader in the development and commercialization of technology for ultra-low temperature preservation ("cryopreservation") of viable human tissues for use in cardiovascular, vascular, and orthopaedic surgeries throughout the United States and Canada. The Company's BioGlue(R) surgical adhesive, CE marked in the European Union for use in vascular sealing and repair, is distributed throughout Europe. Through its wholly owned subsidiary, Ideas for Medicine, Inc., CryoLife is a manufacturer and distributor of an extensive line of single-use medical devices used primarily in vascular and cardiovascular surgery. The Company also manufactures stentless porcine heart valves which are distributed within the European Community.

                                CRYOLIFE, INC.
                    SUMMARY OF CONSOLIDATED FINANCIAL DATA
               (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
                                 (UNAUDITED)

                                                   Three Months Ended
                                                        March 31,
                                                 1998               1997
    REVENUES                                $  14,625          $  10,413
     COSTS AND EXPENSES:
     CRYOPRESERVATION AND PRODUCTS              5,481              3,426
     GENERAL, ADMINISTRATIVE
      AND MARKETING                             5,827              4,479
     RESEARCH & DEVELOPMENT                     1,011                849
     INTEREST                                     430                132
                                               12,749              8,886
     INCOME BEFORE INCOME TAXES                 1,876              1,527
     INCOME TAX EXPENSE                           704                575
     NET INCOME                             $   1,172          $     952

    EARNINGS PER SHARE:
     BASIC                                  $    0.12          $    0.10
     DILUTED                                $    0.12          $    0.10

    WEIGHTED AVERAGE SHARES OUTSTANDING:
     BASIC                                  9,739,000          9,581,000
     DILUTED                               10,077,000          9,877,000

                                           Proforma*
                             March 31,     March 31,     December 31,
                               1998          1998           1997

    BALANCE SHEET DATA:
    WORKING CAPITAL           $59,452       $52,363        $18,825
    TOTAL ASSETS              101,069        89,844         53,749
    SHAREHOLDERS' EQUITY       71,560        77,570         30,227

    *  Ref1ects the receipt of the proceeds from the underwriters (including
       the overallotment option), repayment of certain debt and distributions
       to selling shareholders in connection with the Company's follow-on
       offering.

SOURCE: CryoLife, Inc.