E-Z-EM: Earnings News Release 3rd Qtr NEWS FOR IMMEDIATE RELEASE Contact: Dennis J. Curtin Chief Financial Officer Phone: 1-800-544-4624, ext. 320 E-Z-EM, INC., ANNOUNCES THIRD QUARTER FISCAL 1998 RESULTS: ANGIODYNAMICS DIVISION TAKES $4.3 MILLION CHARGE DURING QUARTER Westbury, New York; April 14, 1998 E-Z-EM, Inc. (AMEX EZM.A and EZM.B) today announced results for the third fiscal quarter ended February 28, 1998. Net sales increased 3% to $24,385,000 from the prior year's third quarter. The Company posted a net loss for the quarter of $5,819,000, ($.58) per share, due largely to the write-off of cardiovascular intangible assets and related costs totaling $4,270,000, ($.43) per share, by its AngioDynamics business segment. Last year the Company reported a net loss of $1,046,000, ($.11) per share, in the third quarter. "Results of our Diagnostic segment improved by over $800,000 in the quarter, up from an operating loss of $1.2 million last year," said Howard S. Stern, Chairman of E-Z-EM. "Corporate-wide operating results, however, were adversely affected by a non-cash accounting charge of $4,121,000, or ($.41) per share, related to an impairment of certain long-lived assets for use in the cardiovascular market. The revenue potential of this cardiovascular technology was impaired due to price erosion for stents and angioplasty products, increasing product competition, and the Company's strategic decision to focus its efforts in the interventional radiology market." The charge had no impact on the Company's cash flow or its ability to generate cash flow in the future. As a result of the impairment charge, future amortization expense related to these assets will decrease by approximately $250,000 per year. As previously reported, Eamonn P. Hobbs, AngioDynamics' President and CEO said, "Our core competence is designing and manufacturing devices for the diagnosis and treatment of peripheral vascular and non-vascular diseases. As a result, we have become a significant player in the interventional radiology market. Over the past several years we have attempted to enter the cardiovascular market with a patented and proprietary line of PTCA catheters and a coronary stent. It is now clear we need to find a strategic business partner with an existing cardiovascular sales and marketing franchise if we are to be successful in the cardiovascular market." The Company is prepared to enter into negotiations immediately, although there can be no assurance that it will find the appropriate strategic partner in order to more fully commercialize these assets. Net sales for the first nine months of fiscal 1998 increased 3% to $74,809,000 from the comparable period in fiscal 1997. Year-to-date results for the Diagnostic segment improved by over $1.4 million to an operating profit of approximately $700,000. Corporate-wide operating results for this period were impacted by the same cardiovascular write-off that adversely affected the quarter, totaling $5,004,000, or ($.50) per share. There was a net loss of $7,066,000, ($.71) per share for the first nine months of this year, compared to a net loss of $290,000, ($.03) per share, 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 corporate website 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 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 February 28, 1998, as well as its Annual Report on Form 10-K, may affect the actual results achieved by the Company. FINANCIAL RESULTS OF THIRD QUARTER FOR E-Z-EM, INC. (AMEX-EZM.A and EZM.B) THIRD QUARTER ENDED ------------------- FEBRUARY 28, MARCH 1, INCREASE (DEC.) 1998 1997 1998 VS. 1997 ------------ -------- --------------- INCOME STATEMENT DATA: --------------------- NET SALES (1) $24,385,000 $23,576,000 3% GROSS PROFIT $8,239,000 $8,622,000 -4% GROSS PROFIT AS A PERCENT OF SALES 33.8 36.6 - SELLING AND ADMINISTRATIVE EXPENSES $8,379,000 $8,325,000 1% RESEARCH AND DEVELOPMENT EXPENSES $1,410,000 $1,792,000 -21% IMPAIRMENT OF LONG-LIVED ASSETS $4,121,000 - - OPERATING LOSS ($5,671,000) ($1,495,000) -279% LOSS BEFORE INCOME TAXES ($5,878,000) ($1,423,000) -313% NET LOSS ($5,819,000) ($1,046,000) -456% LOSS PER COMMON SHARE BASIC AND DILUTE ($0.58) ($0.11) -427% WEIGHTED AVERAGE COMMON SHARES BASIC AND DILUTE 9,949,328 9,891,783 - NINE MONTHS ENDED ----------------- FEBRUARY 28, MARCH 1, INCREASE (DEC.) 1998 1997 1998 VS. 1997 ------------ -------- --------------- NET SALES (1) $74,809,000 $72,923,000 3% GROSS PROFIT $26,695,000 $28,738,000 -7% GROSS PROFIT AS A PERCENT OF SALES 35.7 39.4 - SELLING AND ADMINISTRATIVE EXPENSES $24,923,000 $24,832,000 - RESEARCH AND DEVELOPMENT EXPENSES $4,491,000 $4,767,000 -6% IMPAIRMENT OF LONG-LIVED ASSETS $4,121,000 - - OPERATING LOSS ($6,840,000) ($861,000) -694% LOSS BEFORE INCOME TAXES ($7,220,000) ($408,000) -1670% NET LOSS ($7,066,000) ($290,000) -2337% LOSS PER COMMON SHARE BASIC AND DILUTE ($0.71) ($0.03) -2267% WEIGHTED AVERAGE COMMON SHARES BASIC AND DILUTE 9,933,922 9,854,233 - (1) - INCLUDES ANGIODYNAMICS NET SALES OF $4,507,000 AND $13,729,000 FOR THE QUARTER AND NINE MONTHS ENDED FEBRUARY 28, 1998, AND $4,660,000 AND $14,148,000 FOR THE QUARTER AND NINE MONTHS ENDED MARCH 1, 1997. 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