E-Z-EM: Earnings News Release Contact: Dennis J. Curtin Chief Financial Officer Phone: 1-800-544-4624, ext. 320 E-Z-EM, INC., ANNOUNCES SECOND QUARTER FISCAL 1998 RESULTS Westbury, NY; January 13, 1998 -- E-Z-EM, Inc., (AMEX EZM.A and EZM.B) today announced results for the second fiscal quarter ended November 29, 1997. Net sales were $24,711,000, compared to $25,992,000 in the prior year's second quarter. There was a net loss of $1,375,000, $(.14) per common share, compared to net earnings of $243,000, $.02 per share, in the comparable quarter of fiscal 1997. The net loss included charges for severance and plant closing as well as AngioDynamics inventory reserves of $1.4 million pre-tax. Net sales for the first six months of fiscal 1998 were $50,424,000, an increase of 2% compared to fiscal 1997. There was a net loss of $1,247,000, $(.13) per common share, compared to net earnings of $756,000, $.07 per share, last year. The loss included charges and reserves, as mentioned in the quarterly results, of $1.5 million pre-tax. "Year-to-date operating results of our diagnostic segment improved by over $600,000, but were adversely affected by our AngioDynamics division," said Howard S. Stern, Chairman of E-Z-EM. "Continued domestic market penetration of AngioDynamics products led to 30% higher sales in the U.S. However, a decline in sales of our coronary stent in international markets caused net sales to fall. AngioDynamics gross profit declined as a result of increased inventory reserves, weak demand and pricing in the stent market, and underutilized capacity at our Irish manufacturing facility. Quarterly results were similarly impacted by AngioDynamics sales and gross profit." Enteric Products, Inc., E-Z-EM's wholly-owned subsidiary which develops, manufactures and markets tests for detection of the ulcer-causing bacterium Helicobacter pylori, increased sales by 33% for the year-to-date, and had pre-tax earnings of $493,000 for that period. The first CT power injector -- the PercuPump TouchScreen with EDA -- to aid in the detection of extravasation, the accidental infiltration of contrast media into surrounding tissue, has been developed by E-Z-EM. During the quarter, the Company announced distribution plans with General Electric Medical Systems of Milwaukee, Wisconsin, and that it will work with G.E. on future joint marketing of the injector. The PercuPump injector, which has patents pending, successfully completed clinical trials in four leading medical institutions and has been cleared by the U.S. Food and Drug Administration (FDA) for marketing. The market size for new CT scanners, many of which will be sold with power injectors, is estimated at 800 per year in the U.S., and 2« to 3 times that number in international markets. It was also announced during the quarter that the barium enema x-ray examination -- one of E-Z-EM's core business products -- has been included as an approved procedure for Medicare-reimbursable colorectal cancer screening. The new law became effective January 1, 1998, and provides coverage for over 37 million Americans age 65 and over. Patient screening for early detection of colorectal polyps and cancer can help lower the 150,000 new cases and 60,000 deaths that occur annually from the disease. E-Z-EM is the world's largest manufacturer of contrast agents for gastrointestinal radiology, and, through its wholly-owned subsidiary, AngioDynamics, manufactures three types of medical devices: angiographic, thrombolytic and stent/angioplasty; Enteric Products, Inc., is a subsidiary that develops, manufactures and markets tests to detect Helicobacter pylori, the bacterium responsible for peptic ulcer disease. For additional information on E-Z-EM, please contact Frank Kerrigon at 1-800-544-4624, ext. 325, or visit our corporate website at http://www.ezem.com. The statements made in this press release contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company's expectations. In addition to the matters described in this release, future actions by the FDA, results of pending or future clinical trials, as well as the risk factors listed from time to time in the Company's SEC reports, including but not limited to its Form 10-Q for the quarter ended November 29, 1997, as well as its Annual Report on Form 10-K, may affect the actual results achieved by the Company. ### FINANCIAL RESULTS OF SECOND QUARTER FOR E-Z-EM, INC. (AMEX-EZM.A AND EZM.B) SECOND QUARTER ENDED -------------------- NOVEMBER 29, NOVEMBER 30, INCREASE (DEC.) 1997 1996 1997 VS. 1996 ------------ ------------ --------------- INCOME STATEMENT DATA: --------------------- NET SALES (1) $24,711,000 $25,992,000 (5%) GROSS PROFIT $8,721,000 $10,251,000 (15%) GROSS PROFIT AS A PERCENT OF SALES 35.3 39.4 - OPERATING EXPENSES $10,201,000 $10,124,000 1% OPERATING PROFIT (LOSS) ($1,480,000) $127,000 - EARNINGS (LOSS) BEFORE INCOME TAXES ($1,552,000) $306,000 - NET EARNINGS (LOSS) ($1,375,000) $243,000 - EARNINGS (LOSS) PER COMMON SHARE PRIMARY AND FULLY DILUTED ($.14) $.02 - WEIGHTED AVERAGE COMMON SHARES PRIMARY 9,637,869 10,327,284 - FULLY DILUTED 9,637,869 10,327,423 - (1) - INCLUDES ANGIODYNAMICS NET SALES OF $4,356,000 AND $9,222,000 FOR THE QUARTER AND SIX MONTHS ENDED NOVEMBER 29, 1997, AND $4,880,000 AND $9,487,000 FOR THE QUARTER AND SIX MONTHS ENDED NOVEMBER 30, 1996. SIX MONTHS ENDED ---------------- NOVEMBER 29, NOVEMBER 30, INCREASE (DEC.) 1997 1996 1997 VS. 1996 ------------ ------------ --------------- INCOME STATEMENT DATA: --------------------- NET SALES (1) $50,424,000 $49,347,000 2% GROSS PROFIT $18,456,000 $20,116,000 (8%) GROSS PROFIT AS A PERCENT OF SALES 36.6 40.8 - OPERATING EXPENSES $19,625,000 $19,482,000 1% OPERATING PROFIT (LOSS) ($1,169,000) $634,000 - EARNINGS (LOSS) BEFORE INCOME TAXES ($1,342,000) $1,015,000 - NET EARNINGS (LOSS) ($1,247,000) $756,000 - EARNINGS (LOSS) PER COMMON SHARE PRIMARY AND FULLY DILUTED ($.13) $.07 - WEIGHTED AVERAGE COMMON SHARES PRIMARY 9,637,684 10,350,333 - FULLY DILUTED 9,637,684 10,350,403 - (1) - INCLUDES ANGIODYNAMICS NET SALES OF $4,356,000 AND $9,222,000 FOR THE QUARTER AND SIX MONTHS ENDED NOVEMBER 29, 1997, AND $4,880,000 AND $9,487,000 FOR THE QUARTER AND SIX MONTHS ENDED NOVEMBER 30, 1996. End