ThermoGenesis Announces First Quarter Results

RANCHO CORDOVA, Calif., Nov. 9 /PRNewswire-FirstCall/ -- ThermoGenesis Corp. today announced results for its first fiscal quarter ended September 30, 2005. Net revenues for the quarter ended September 30, 2005 were $2,116,000, a reduction of 12% compared to $2,397,000 for the first quarter of fiscal 2005. Lower revenues in the current year were the result of one less BioArchive (R) device sale, fewer BioArchive disposable canister sales and the loss of the ZLB (formerly Aventis) ThermoLine(TM) service contract in the second fiscal quarter of the prior year. This reduction in revenues was partially offset by sales of the newly introduced TPD sold during the quarter to our distribution partner, Biomet.

Gross profit for the first quarter was $587,000 or 28% of net revenues, a decrease compared to $780,000 or 33% for the first quarter ended September 30, 2004. This reduction in gross profit was due to the loss of ThermoLine service revenues, which had a higher margin than the overall product mix, as well as a lower percentage of higher margin BioArchive devices and canister sales in the overall product mix.

Net loss for the quarter ended September 30, 2005 was $2,016,000 or $0.04 per basic and diluted share, compared to a $1,879,000 net loss or $0.04 per basic and diluted share for the quarter ended September 30, 2004. Selling, general and administrative expenses were $1,584,000 for the first quarter of fiscal year 2006, up from $1,434,000 in the same quarter last year. This increase is primarily due to the Company's adoption of the fair value recognition provision of the Statement of Financial Accounting Standard No. 123(R), Share-Based Payments. R&D expenses were $1,073,000 for the quarter ended September 30, 2005, compared to $1,269,000 in the same quarter last year, a reduction of $196,000. The decrease is the result of a reimbursement of product development costs from our strategic partner, Biomet, and a reduction in design and development services for the AutoXpress(TM) System ("AXP(TM)") as it is near completion and market launch.

Kevin Simpson, President and COO commented, "This was a disappointing quarter for revenues and margin for us due to lower BioArchive sales over the prior year comparable quarter. However, the Company has been focused on signing distribution partners such as GE Healthcare, Biomet and Medtronic, whom we expect will substantially expand our sales and distribution capabilities and eventually, gross margins." Simpson added further, "This was an important quarter for the Company in relation to the market introduction of our TPD, having sold the product to our distribution partners Biomet and Medtronic."

The Company reported a cash balance of $8,121,000 and working capital of $11,507,000 at September 30, 2005 compared to $9,568,000 of cash and $13,085,000 of working capital at June 30, 2005.

Company Conference Call

Management will host a conference call on November 21st at 11:00 AM PST to review the financial results and other corporate events, followed by a Q&A session. The call can be accessed by dialing: (800) 860-2442 within the U.S. or (412) 858-4600 outside the U.S. and giving the conference name "ThermoGenesis". Participants are asked to call the assigned number approximately 5 minutes before the conference call begins. A replay of the conference call will be available two hours after the call for the following five business days by dialing: (877) 344-7529 within the U.S. or (412) 317-0088 outside the U.S. and entering the following account number when prompted "381871."

About ThermoGenesis Corp.

ThermoGenesis Corp. is a leader in enabling technologies for cell therapeutics. The Company's technology platforms lead the world in their ability to produce biological products from single units of blood.

-- The BioArchive System, an automated robotic cryogenic device, is used by major cord blood stem cell banks in 26 countries as a key enabling technology for cryopreserving and archiving cord blood stem cell units for transplant. -- The AutoXpress System, currently undergoing testing, is a semi- automated robotic device and companion sterile closed blood processing disposable, to harvest stem cells from cord blood. -- The CryoSeal(R) FS System, a semi-automated device and companion sterile blood processing disposable, is used to prepare hemostatic and adhesive surgical sealants from the patient's blood in about an hour. Enrollment in a 150 patient U.S. pivotal clinical trial has been completed and a PMA is being prepared. -- The Thrombin Processing Device (TPD) is a sterile blood processing disposable that prepares activated thrombin from a small aliquot of patient blood, or blood plasma in 25 minutes. The TPD market launch is underway in Europe.

The statements contained in this release which are not historical facts are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the Company's control with respect to market acceptance of new technologies and products, delays in testing and evaluation of products and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.

THERMOGENESIS CORP. Condensed Balance Sheets Unaudited September 30, June 30, 2005 2005 ASSETS Current assets: Cash and cash equivalents $8,121,000 $9,568,000 Accounts receivable, net 2,225,000 2,917,000 Inventory 3,135,000 3,280,000 Other current assets 367,000 469,000 Total current assets 13,848,000 16,234,000 Equipment, net 1,196,000 1,184,000 Other assets 48,000 48,000 Total Assets $15,092,000 $17,466,000 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $1,167,000 $1,791,000 Other current liabilities 1,174,000 1,358,000 Total current liabilities 2,341,000 3,149,000 Long-term liabilities 334,000 286,000 Stockholders' equity 12,417,000 14,031,000 Total Liabilities and Stockholders' Equity $15,092,000 $17,466,000 THERMOGENESIS CORP. Condensed Statements of Operations Unaudited Three Months Ended September 30, 2005 2004 Net revenues $2,116,000 $2,397,000 Cost of revenues 1,529,000 1,617,000 Gross profit 587,000 780,000 Gross profit % 28% 33% Expenses: Selling, general and administrative 1,584,000 1,434,000 Research and development 1,073,000 1,269,000 Total operating expenses 2,657,000 2,703,000 Interest and other income, net 54,000 44,000 Net loss ($2,016,000) ($1,879,000) Basic and diluted net loss per common share ($0.04) ($0.04) Shares used in computing per share data 45,917,502 44,923,844

ThermoGenesis Corp.

CONTACT: Matthew Plavan of ThermoGenesis Corp., +1-916-858-5100

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