Isolyser Anticipates 15% Revenue Increase and Positive Earnings for 1st Quarter

Schedules First Quarter Earnings Release and Conference Call;

Re-Emphasizes Stock Repurchase Program



Apr 17, 2001, 01:00 ET from Isolyser Company, Inc.

    NORCROSS, Ga., April 17 /PRNewswire/ --
 Isolyser Company, Inc. (Nasdaq:   OREX) announced today that it expects to
 report for the first quarter ended March 31, 2001 positive earnings and net
 revenues of approximately $16 million, an increase of 15% over last year's
 first quarter net revenues.
     Strong growth in the core branded business of the Company's Microtek
 subsidiary led the contribution to increased net revenues.  Also contributing
 to increased revenues was Microtek's acquisition of the Clean-Op and drape
 product lines from Deka Medical during the first quarter.  These acquired
 businesses had net sales of approximately $23 million in 2000.  The Company
 expects that this acquisition will be accretive to earnings in 2001.
     The Deka acquisition has strategic benefits for the Company due to
 numerous synergies and the complementary nature of the acquired products to
 the Company's existing products.  The newly acquired Clean-Op division
 broadens Microtek's base of products used in operating rooms, catheterization
 labs and outpatient facilities, and leverages Microtek's sales force across
 these markets.  The angiography drape line acquired from Deka, with year 2000
 net sales of more than $12 million, complements our existing line of
 catheterization lab equipment drapes and provides our sales group improved
 access to this fast growing surgical procedure.  The remaining Deka products
 supplement Microtek's line of equipment covers and benefits from the economies
 of scale achieved by combining the two product lines.  Microtek is now even
 better positioned to take advantage of the growing number of surgical
 procedures in the healthcare market, particularly the minimally invasive type
 where the use of specialized equipment and robotics is greatest.
     Isolyser's President and Chief Executive Officer, Dan Lee, stated, "During
 the first quarter we successfully began implementation of the plan that we
 announced late last year and are increasingly confident in our results.  We
 have enhanced Microtek's market leadership position through acquisitions and
 its growth rate is above industry norms.  We have substantially completed the
 consolidation of our corporate functions and rationalized the OTI division,
 resulting in predictable and controllable costs.  OTI's recent demonstration
 of its MICROBasix(TM) processor and Certified Soluble(TM) products was
 received enthusiastically by decision-makers in the nuclear industry and we
 believe this is moving us in a positive direction.  We believe that these
 activities are not currently reflected in our share price."
     Additionally, the Company reiterated its intention to actively repurchase
 stock under the previously announced stock repurchase program.  The Company
 expects to be able to continue repurchases on May 11, 2001 following public
 announcement of first quarter operating results.
 
     Conference Call
     The Company's results of operations for first quarter ended March 31, 2001
 are scheduled to be released Tuesday, May 8, 2001, before the market opens.  A
 conference call will be conducted by Dan R. Lee, President and Chief Executive
 Office, and Jerry Wilson, Chief Financial Officer, at 2:00 p.m. Eastern Time
 on May 8, 2001, and will be accessible to the public by calling
 1-800-680-9685, Security Code: Isolyser.  International callers dial
 334-260-3557.  Callers should dial in approximately 10 minutes before the call
 begins.
     To access the live broadcast of the call over the Internet, log on to:
 www.streetfusion.com
     A conference call replay will be available at 5:00 p.m. Eastern Time on
 May 8, 2001 through 5 p.m. Eastern Time May 15, 2001 and can be accessed by
 calling 800-858-5309 (domestic) or 334-260-0890 (international); access code:
 40609, pass code: 48612.
 
     Actual Results Could Differ From Forward-Looking Statements
     This Press Release contains forward-looking statements made pursuant to
 the safe harbor provisions of the Private Securities Litigation Reform Act of
 1995.  Such statements include, but are not limited to, statements relating to
 first quarter operating results, first quarter net revenues, the effect of the
 acquisition of assets from Deka Medical on the Company's operating results,
 synergies achievable through the acquisition from Deka Medical, improvement to
 OTI's operating costs, improvements to Microtek's market leadership, and OTI's
 opportunities in the nuclear market.  Such statements are subject to certain
 factors, risks and uncertainties that may cause actual results, events and
 performance to differ from those referred to in such statements.  These risks
 include, without limitation, those identified in Risk Factors in the Company's
 Annual Report on Form 10-K for the year ended December 31, 2001, including
 without limitation the risks described in Risk Factors under the captions "-
 History of Net Losses," "-Marketing Risks affecting OREX Products,"
 "-Manufacturing and Supply Risks," "-Protection of Technologies,"
 "-Competition," "-Risks of Technological Obsolescence," "-Reliance Upon
 Distributors,"  "Regulatory Risks," "-Environmental Matters," and "-Product
 Liability."
 
     About Isolyser
     Isolyser has developed and manufactures OREX(R) Degradables, a series of
 ecologically safe products made from a thermoplastic, hot water soluble
 polymer that can be configured into an array of products such as woven and
 non-woven fabrics, film, and thermoformed and extruded items.  These products
 can be dissolved after use, in hot water in a specially designed OREX(TM)
 processor similar to a commercial washing machine, for safe disposal through
 municipal sewer systems.  The Company believes that its products provide
 protection to people and the environment while providing cost-effective
 solutions to the problems associated with waste reduction and disposal.  The
 Company also manufactures infection control products.
     For More Information, Please Call (800) 476-5973.
 
 

SOURCE Isolyser Company, Inc.
    NORCROSS, Ga., April 17 /PRNewswire/ --
 Isolyser Company, Inc. (Nasdaq:   OREX) announced today that it expects to
 report for the first quarter ended March 31, 2001 positive earnings and net
 revenues of approximately $16 million, an increase of 15% over last year's
 first quarter net revenues.
     Strong growth in the core branded business of the Company's Microtek
 subsidiary led the contribution to increased net revenues.  Also contributing
 to increased revenues was Microtek's acquisition of the Clean-Op and drape
 product lines from Deka Medical during the first quarter.  These acquired
 businesses had net sales of approximately $23 million in 2000.  The Company
 expects that this acquisition will be accretive to earnings in 2001.
     The Deka acquisition has strategic benefits for the Company due to
 numerous synergies and the complementary nature of the acquired products to
 the Company's existing products.  The newly acquired Clean-Op division
 broadens Microtek's base of products used in operating rooms, catheterization
 labs and outpatient facilities, and leverages Microtek's sales force across
 these markets.  The angiography drape line acquired from Deka, with year 2000
 net sales of more than $12 million, complements our existing line of
 catheterization lab equipment drapes and provides our sales group improved
 access to this fast growing surgical procedure.  The remaining Deka products
 supplement Microtek's line of equipment covers and benefits from the economies
 of scale achieved by combining the two product lines.  Microtek is now even
 better positioned to take advantage of the growing number of surgical
 procedures in the healthcare market, particularly the minimally invasive type
 where the use of specialized equipment and robotics is greatest.
     Isolyser's President and Chief Executive Officer, Dan Lee, stated, "During
 the first quarter we successfully began implementation of the plan that we
 announced late last year and are increasingly confident in our results.  We
 have enhanced Microtek's market leadership position through acquisitions and
 its growth rate is above industry norms.  We have substantially completed the
 consolidation of our corporate functions and rationalized the OTI division,
 resulting in predictable and controllable costs.  OTI's recent demonstration
 of its MICROBasix(TM) processor and Certified Soluble(TM) products was
 received enthusiastically by decision-makers in the nuclear industry and we
 believe this is moving us in a positive direction.  We believe that these
 activities are not currently reflected in our share price."
     Additionally, the Company reiterated its intention to actively repurchase
 stock under the previously announced stock repurchase program.  The Company
 expects to be able to continue repurchases on May 11, 2001 following public
 announcement of first quarter operating results.
 
     Conference Call
     The Company's results of operations for first quarter ended March 31, 2001
 are scheduled to be released Tuesday, May 8, 2001, before the market opens.  A
 conference call will be conducted by Dan R. Lee, President and Chief Executive
 Office, and Jerry Wilson, Chief Financial Officer, at 2:00 p.m. Eastern Time
 on May 8, 2001, and will be accessible to the public by calling
 1-800-680-9685, Security Code: Isolyser.  International callers dial
 334-260-3557.  Callers should dial in approximately 10 minutes before the call
 begins.
     To access the live broadcast of the call over the Internet, log on to:
 www.streetfusion.com
     A conference call replay will be available at 5:00 p.m. Eastern Time on
 May 8, 2001 through 5 p.m. Eastern Time May 15, 2001 and can be accessed by
 calling 800-858-5309 (domestic) or 334-260-0890 (international); access code:
 40609, pass code: 48612.
 
     Actual Results Could Differ From Forward-Looking Statements
     This Press Release contains forward-looking statements made pursuant to
 the safe harbor provisions of the Private Securities Litigation Reform Act of
 1995.  Such statements include, but are not limited to, statements relating to
 first quarter operating results, first quarter net revenues, the effect of the
 acquisition of assets from Deka Medical on the Company's operating results,
 synergies achievable through the acquisition from Deka Medical, improvement to
 OTI's operating costs, improvements to Microtek's market leadership, and OTI's
 opportunities in the nuclear market.  Such statements are subject to certain
 factors, risks and uncertainties that may cause actual results, events and
 performance to differ from those referred to in such statements.  These risks
 include, without limitation, those identified in Risk Factors in the Company's
 Annual Report on Form 10-K for the year ended December 31, 2001, including
 without limitation the risks described in Risk Factors under the captions "-
 History of Net Losses," "-Marketing Risks affecting OREX Products,"
 "-Manufacturing and Supply Risks," "-Protection of Technologies,"
 "-Competition," "-Risks of Technological Obsolescence," "-Reliance Upon
 Distributors,"  "Regulatory Risks," "-Environmental Matters," and "-Product
 Liability."
 
     About Isolyser
     Isolyser has developed and manufactures OREX(R) Degradables, a series of
 ecologically safe products made from a thermoplastic, hot water soluble
 polymer that can be configured into an array of products such as woven and
 non-woven fabrics, film, and thermoformed and extruded items.  These products
 can be dissolved after use, in hot water in a specially designed OREX(TM)
 processor similar to a commercial washing machine, for safe disposal through
 municipal sewer systems.  The Company believes that its products provide
 protection to people and the environment while providing cost-effective
 solutions to the problems associated with waste reduction and disposal.  The
 Company also manufactures infection control products.
     For More Information, Please Call (800) 476-5973.
 
 SOURCE  Isolyser Company, Inc.