MedAmicus Announces Sale of Gynecology Business Unit; Company Sells Assets For $4.7 million

Apr 25, 2001, 01:00 ET from MedAmicus, Inc.

    MINNEAPOLIS, April 25 /PRNewswire/ -- MedAmicus, Inc. (Nasdaq:   MEDM) today
 announced the sale of the assets of its Gynecology business unit to
 CooperSurgical, Inc. for $4.7 million.  CooperSurgical is a unit of The Cooper
 Companies, Inc. (NYSE:   COO) and is a leading marketer of medical products to
 the gynecology office.
     The MedAmicus Gynecology Division's flagship product is the LuMax(TM)
 Fiber Optic Cystometry System, consisting of a monitor and catheters, designed
 to conduct office based incontinence diagnostic studies.  Under the terms of
 the agreement, CooperSurgical will assume immediate responsibility for sales
 and marketing of the product line, while MedAmicus will continue to
 manufacture for CooperSurgical under a supply agreement until an orderly
 transition of manufacturing responsibilities can be made, tentatively by
 December 31, 2001.
     "While we still have a great deal of enthusiasm for the LuMax System and
 the large market it addresses, we came to the conclusion that for this product
 line to be truly successful, it needed greater sales and marketing strength
 than we could provide," said James D. Hartman, president and CEO of MedAmicus.
 "CooperSurgical is one of the leading marketers of gynecology products in the
 U.S., and can provide those resources.
     "We have significant opportunities available in our Percutaneous Delivery
 Solutions (PDS) business unit, including safety needles and Left Ventricle
 Lead Delivery Systems," Hartman continued.  "We determined that the resources
 committed to the Gynecology business could be better applied to expanding our
 capabilities and resources in support of the growth of the PDS business.
     "As a result of the transaction, we will report a gain on the sale of
 approximately $3,000,000, or $.67 a share," Hartman concluded.  "For income
 tax purposes, the gain will be offset against our net operating loss
 carry-forward that currently stands at around $5,500,000.  We will use a
 portion of the proceeds to retire the outstanding balance on our line of
 credit of approximately $1.4 million, and thus reduce our interest expense."
     The Gynecology Division reported sales for the year ended December 31,
 2000, of $3,580,000, with a loss of $2,110,000 after absorbing $682,000 of
 general and administrative and interest allocations.  MedAmicus total company
 sales for the year ended December 31, 2000, were $10,978,000 with net income
 of $162,000.
     For the first quarter of 2001, the Gynecology Division had sales of
 $835,000, and a loss of $250,000 after absorbing $221,000 of allocated general
 and administrative and interest costs.  Total company sales for the first
 quarter were $3,240,000 and net income was $450,000.
     MedAmicus, Inc., based in Plymouth, Minn., is a medical products company
 engaged in the design, development, manufacture and marketing of medical
 products for the cardiology market.  Its Percutaneous Delivery Solutions
 business markets venous vessel introducers for use in the implantation of
 pacemakers, defibrillators, infusion ports and dialysis catheters through
 value-added relationships with Medtronic, Inc. (NYSE:   MDT) and other medical
 device companies.  MedAmicus is traded on the Nasdaq Stock Market under the
 symbol MEDM.
     This press release contains forward-looking statements that involve risks
 and uncertainties.  Certain important factors could cause MedAmicus' actual
 results to differ materially from those anticipated by some statements made
 herein.  Among the factors that could cause results to differ materially are
 those discussed in our Annual Report on Form 10-KSB and other recent filings
 with the Securities and Exchange Commission.  These risks and uncertainties
 include, without limitation, attracting and retaining key personnel, lack of
 market acceptance of the Company's products, introduction of competitive
 products, bringing products to market on a timely basis, concentration of
 sales in one customer, the availability of third party reimbursement, changes
 in government regulations, protecting the Company's intellectual property
 rights and, exposure to products liability claims.
 
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SOURCE MedAmicus, Inc.
    MINNEAPOLIS, April 25 /PRNewswire/ -- MedAmicus, Inc. (Nasdaq:   MEDM) today
 announced the sale of the assets of its Gynecology business unit to
 CooperSurgical, Inc. for $4.7 million.  CooperSurgical is a unit of The Cooper
 Companies, Inc. (NYSE:   COO) and is a leading marketer of medical products to
 the gynecology office.
     The MedAmicus Gynecology Division's flagship product is the LuMax(TM)
 Fiber Optic Cystometry System, consisting of a monitor and catheters, designed
 to conduct office based incontinence diagnostic studies.  Under the terms of
 the agreement, CooperSurgical will assume immediate responsibility for sales
 and marketing of the product line, while MedAmicus will continue to
 manufacture for CooperSurgical under a supply agreement until an orderly
 transition of manufacturing responsibilities can be made, tentatively by
 December 31, 2001.
     "While we still have a great deal of enthusiasm for the LuMax System and
 the large market it addresses, we came to the conclusion that for this product
 line to be truly successful, it needed greater sales and marketing strength
 than we could provide," said James D. Hartman, president and CEO of MedAmicus.
 "CooperSurgical is one of the leading marketers of gynecology products in the
 U.S., and can provide those resources.
     "We have significant opportunities available in our Percutaneous Delivery
 Solutions (PDS) business unit, including safety needles and Left Ventricle
 Lead Delivery Systems," Hartman continued.  "We determined that the resources
 committed to the Gynecology business could be better applied to expanding our
 capabilities and resources in support of the growth of the PDS business.
     "As a result of the transaction, we will report a gain on the sale of
 approximately $3,000,000, or $.67 a share," Hartman concluded.  "For income
 tax purposes, the gain will be offset against our net operating loss
 carry-forward that currently stands at around $5,500,000.  We will use a
 portion of the proceeds to retire the outstanding balance on our line of
 credit of approximately $1.4 million, and thus reduce our interest expense."
     The Gynecology Division reported sales for the year ended December 31,
 2000, of $3,580,000, with a loss of $2,110,000 after absorbing $682,000 of
 general and administrative and interest allocations.  MedAmicus total company
 sales for the year ended December 31, 2000, were $10,978,000 with net income
 of $162,000.
     For the first quarter of 2001, the Gynecology Division had sales of
 $835,000, and a loss of $250,000 after absorbing $221,000 of allocated general
 and administrative and interest costs.  Total company sales for the first
 quarter were $3,240,000 and net income was $450,000.
     MedAmicus, Inc., based in Plymouth, Minn., is a medical products company
 engaged in the design, development, manufacture and marketing of medical
 products for the cardiology market.  Its Percutaneous Delivery Solutions
 business markets venous vessel introducers for use in the implantation of
 pacemakers, defibrillators, infusion ports and dialysis catheters through
 value-added relationships with Medtronic, Inc. (NYSE:   MDT) and other medical
 device companies.  MedAmicus is traded on the Nasdaq Stock Market under the
 symbol MEDM.
     This press release contains forward-looking statements that involve risks
 and uncertainties.  Certain important factors could cause MedAmicus' actual
 results to differ materially from those anticipated by some statements made
 herein.  Among the factors that could cause results to differ materially are
 those discussed in our Annual Report on Form 10-KSB and other recent filings
 with the Securities and Exchange Commission.  These risks and uncertainties
 include, without limitation, attracting and retaining key personnel, lack of
 market acceptance of the Company's products, introduction of competitive
 products, bringing products to market on a timely basis, concentration of
 sales in one customer, the availability of third party reimbursement, changes
 in government regulations, protecting the Company's intellectual property
 rights and, exposure to products liability claims.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X02461027
 
 SOURCE  MedAmicus, Inc.