E-Z-EM, Inc.: Earnings News Release Contact: Dennis J. Curtin Chief Financial Officer Telephone: 1-800-544-4624, ext. 320 E-Z-EM, INC., ANNOUNCES SECOND QUARTER FISCAL 1997 RESULTS SALES OF ANGIODYNAMICS SUBSIDIARY, AIDED BY ANGIOSTENT(tm) CORONARY STENT, INCREASE STRONGLY FOR QUARTER AND FIRST SIX MONTHS Westbury, NY; January 14, 1997 - E-Z-EM, Inc. (AMEX - EZM.A and EZM.B) today announced results for the second fiscal quarter ended November 30, 1996. Net sales increased 13% to $25,992,000 from the prior year's second quarter. Earnings from continuing operations decreased to $243,000, $.02 per common share, from $506,000, $.05 per share, last year. Net earnings were $243,000, $.02 per common share, compared to $20,087,000, $2.09 per share on a primary basis ($2.07 on a fully diluted basis) in the comparable quarter of fiscal 1996. Last year the sale of the Company's 51%-owned subsidiary Surgical Dynamics Inc. to United States Surgical Corporation resulted in an after-tax gain of $19,619,000 to the Company. Net sales for the first six months of fiscal 1997 were $49,347,000, an increase of 10% compared to fiscal 1996. Earnings from continuing operations were $756,000, $.08 per common share, compared to $1,246,000, $.13 per share, last year. Net earnings were $756,000, $.08 per common share, compared to $20,656,000, $2.19 per share on a primary basis ($2.15 on a fully diluted basis) in the comparable period of fiscal 1996, which included the sale of Surgical Dynamics. Results for the second quarters of fiscal 1997 and 1996 were adversely affected by unabsorbed overhead costs of $ 1,023,000 and $570,000, respectively, relating to manufacturing site relocation; year-to-date costs were $1,742,000 for the current fiscal year and $1,240,000 for fiscal 1996. "Net sales from AngioDynamics, which designs and manufactures interventional radiology and cardiology products, increased 90% for the quarter and 97% for the year to date, principally due to new product introductions and market penetration of existing products," said Eamonn P. Hobbs, Chief Executive Officer of AngioDynamics. "Sales of AngioStent(tm), our proprietary coronary stent introduced in the third quarter of fiscal 1996, generated sales of approximately $1,500,000 for the quarter and $3,200,000 for the first six months of this year. AngioDynamics' operating results for the first six months improved $769,000 over last year but declined approximately $100,000 for the quarter. Investment in new product introductions and related selling and marketing programs partially resulted in increased operating expenses of $1,165,000 and $1,410,000 for the quarter and six months, respectively, over last year." For additional information on E-Z-EM, the world's largest manufacturer of contrast agents for gastrointestinal radiology, please contact Frank Kerrigon at 1-800-544-4624, ext.325, or visit our web site at 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 Food and Drug Administration, 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 report on form 10-Q for the quarter ending August 31, 1996, 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 30, DECEMBER 2, INCREASE (DEC.) 1996 1995 1996 VS. 1995 ------------ ----------- --------------- INCOME STATEMENT DATA: --------------------- NET SALES (1) $25,992,000 $23,005,000 13% GROSS PROFIT (2) $10,251,000 $9,623,000 7% GROSS PROFIT AS A PERCENT OF SALES 39.4 41.8 - OPERATING EXPENSES $10,124,000 $9,188,000 10% OPERATING PROFIT (2) $127,000 $435,000 (71%) EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES $306,000 $606,000 (50%) EARNINGS FROM CONTINUING OPERATIONS $243,000 $506,000 (52%) DISCONTINUED OPERATION $19,581,000 - NET EARNINGS $243,000 $20,087,000 (99%) PRIMARY EARNINGS PER COMMON SHARE CONTINUING OPERATIONS $.02 $ .05 (60%) DISCONTINUED OPERATION $.00 $2.04 (100%) TOTAL OPERATIONS $.02 $2.09 (99%) FULLY DILUTED EARNINGS PER COMMON SHARE CONTINUING OPERATIONS $.02 $ .05 (60%) DISCONTINUED OPERATION $.00 $2.02 (100%) TOTAL OPERATIONS $.02 $2.07 (99%) WEIGHTED AVERAGE COMMON SHARES PRIMARY 10,026,790 9,620,137 - FULLY DILUTED 10,026,925 9,713,730 - SIX MONTHS ENDED ---------------- NOVEMBER 30, DECEMBER 2, INCREASE (DEC.) 1996 1995 1996 VS. 1995 ------------ ----------- --------------- INCOME STATEMENT DATA: --------------------- NET SALES (1) $49,347,000 $45,004,000 10% GROSS PROFIT (2) $20,116,000 $18,754,000 7% GROSS PROFIT AS A PERCENT OF SALES 40.8 41.7 - OPERATING EXPENSES $19,482,000 $17,495,000 11% OPERATING PROFIT (2) $634,000 $1,259,000 (50%) EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES $1,015,000 $1,476,000 (31%) EARNINGS FROM CONTINUING OPERATIONS $756,000 $1,246,000 (39%) DISCONTINUED OPERATION $19,410,000 - NET EARNINGS $756,000 $20,656,000 (96%) PRIMARY EARNINGS PER COMMON SHARE CONTINUING OPERATIONS $.08 $ .13 (38%) DISCONTINUED OPERATION $.00 $2.06 (100%) TOTAL OPERATIONS $.08 $2.19 (96%) FULLY DILUTED EARNINGS PER COMMON SHARE CONTINUING OPERATIONS $.08 $ .13 (38%) DISCONTINUED OPERATION $.00 $2.02 (100%) TOTAL OPERATIONS $.08 $2.15 (96%) WEIGHTED AVERAGE COMMON SHARES PRIMARY 10,049,169 9,443,606 - FULLY DILUTED 10,049,237 9,593,695 - (1) - INCLUDES ANGIODYNAMICS NET SALES OF $4,880,000 AND $9,487,000 FOR THE QUARTER AND SIX MONTHS ENDED NOVEMBER 30, 1996, AND $2,573,000 AND $4,822,000 FOR THE QUARTER AND SIX MONTHS ENDED DECEMBER 2, 1995. (2) - INCLUDES UNABSORBED OVERHEAD COSTS ASSOCIATED WITH THE PREVIOUSLY ANNOUNCED RELOCATION OF A PORTION OF OUR CORE MANUFACTURING OPERATIONS. SUCH COSTS APPROXIMATED $1,023,000 AND $1,742,000 FOR THE QUARTER AND SIX MONTHS ENDED NOVEMBER 30, 1996, AND $1,240,000 FOR THE QUARTER AND SIX MONTHS ENDED DECEMBER 2, 1995. End.