E-Z-EM: Earnings News Release Contact: Dennis J. Curtin Chief Financial Officer 1-800-544-4624, ext. 320 E-Z-EM, INC., ANNOUNCES FIRST QUARTER FISCAL 1998 RESULTS Westbury, NY; October 10, 1997 - E-Z-EM, Inc., (AMEX - EZM.A and EZM.B) today announced results for the first fiscal quarter ended August 30, 1997. Net sales increased 10% to $25,713,000 from the prior year's first quarter. Net earnings were $128,000, $.01 per common share on a primary and fully diluted basis, compared to net earnings of $513,000, $.05 per share, in the first quarter of fiscal 1997. "Operating results for the Company's Imaging Products and Enteric Products divisions improved $857,000 over last year's first quarter," said Howard S. Stern, Chairman of E-Z-EM. "Higher sales and reduced operating expenses were partially offset by increased price discounts to Group Purchasing Organizations during the quarter. While sales of our AngioDynamics subsidiary increased 6% compared to the first quarter of fiscal 1997, gross profit as a percentage of sales declined 12%, and operating expenses increased 28%. The decline in gross profit resulted from lower coronary stent sales, price erosion in the stent market, and start-up costs at AngioDynamics' new plant in Ireland. The increased operating expenses primarily selling and administrative were related to the acquisition of Leocor, Inc., and the start-up of the Irish manufacturing facility in the third quarter of fiscal 1997." During the first quarter, the Company announced that it had purchased approximately 25% of ITI Medical Technologies, Inc., a spin-off company from the Lawrence Livermore National Laboratories, in Livermore, California. The investment, which makes E-Z-EM the largest single shareholder of ITI, forms a strategic alliance for the development, manufacture, and marketing of interventional MRI devices. ITI's main emphasis will be on product development and manufacturing, while E-Z-EM will concentrate on the international marketing of these medical devices. 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., another subsidiary, develops, manufactures and markets test kits for detection of the ulcer-causing bacterium Helicobacter pylori. For additional information 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 August 30, 1997, as well as its Annual Report on Form 10-K, may affect the actual results achieved by the Company. FINANCIAL RESULTS OF FIRST QUARTER FOR E-Z-EM, INC. (AMEX-EZM.A AND EZM.B) FIRST QUARTER ENDED ------------------- AUGUST 30, 1997 AUGUST 31, 1996 INCREASE (DEC.) 1997 VS. 1996 --------------- --------------- --------------- INCOME STATEMENT DATA: --------------------- NET SALES (1) $25,713,000 $23,355,000 10% GROSS PROFIT (2) $9,735,000 $9,865,000 (1%) GROSS PROFIT AS A PERCENT OF SALES 37.9 42.2 - OPERATING EXPENSES $9,424,000 $9,358,000 1% OPERATING PROFIT (2) $311,000 $507,000 (39%) EARNINGS BEFORE INCOME TAXES $210,000 $709,000 (70%) NET EARNINGS $128,000 $513,000 (75%) EARNINGS PER COMMON SHARE PRIMARY AND FULLY DILUTED $.01 $.05 (80%) WEIGHTED AVERAGE COMMON SHARES PRIMARY AND FULLY DILUTED 10,089,131 10,373,404 - (1) - INCLUDES ANGIODYNAMICS NET SALES OF $4,866,000 AND $4,607,000 FOR THE QUARTERS ENDED AUGUST 30, 1997 AND AUGUST 31, 1996, RESPECTIVELY. (2) - INCLUDES APPROXIMATELY $524,000 AND $719,000 OF UNABSORBED OVERHEAD COSTS ASSOCIATED WITH THE MANUFACTURING SITE RELOCATION FOR THE QUARTERS ENDED AUGUST 30, 1997 AND AUGUST 31, 1996, RESPECTIVELY. Ends.