Trimedyne, Inc. Reports Financial Results for the Quarter and Fiscal Year Ended September 30, 2009

LAKE FOREST, CA--(Marketwire - January 19, 2010) - TRIMEDYNE, INC. (OTCBB: TMED) today reported its audited financial results for the quarter and fiscal year ended September 30, 2009.

Trimedyne reported revenues of $2,112,000 for the quarter ended September 30, 2009, an increase of 18.6% over revenues of $1,781,000 for the same quarter of 2008. Trimedyne had a net loss of only $37,000 or zero per share in the quarter ended September 30, 2009, based on a weighted average of 18,366,000 shares outstanding, compared to a net loss of $336,000 or $0.02 per share in the same quarter of 2008 on the same number of shares. The reduction in net loss was largely due to increased revenues and improved margins on sales.

Trimedyne had revenues of $7,422,000 in its fiscal year ended September 30, 2009, an increase of 26.4% over revenues of $5,871,000 in fiscal year ended September 30, 2008.

In the Fiscal Year ended September 30, 2009, Trimedyne reported a net loss of $909,000 or $0.05 per share on a weighted average of 18,366,000 shares outstanding, a reduction of 42.8% from the net loss of $1,590,000 or $0.09 per share in the prior fiscal year on the same number of shares. The reduction in net loss was largely due to increased revenues and improved margins on sales.

Marvin P. Loeb, Sc.D., Chairman of Trimedyne, said, “We are pleased the Company almost reached break-even in the quarter ended September 30, 2009, and our net loss in the current fiscal year was 42.8% lower than in the prior fiscal year.”

Dr. Loeb continued, “We have been devoting a very significant portion of our management and R&D efforts over the past two years to the development of our new VaporMAX® Side Firing Fiber. Making the new Fiber sufficiently durable for use with powerful Holmium Lasers proved to be a more challenging task than we originally anticipated. We have now completed the development of the new Fiber and its testing in our laboratory was successful. An independent testing laboratory also tested the new Fiber and reported it performed as successfully as it did in our lab. Our new Fiber is presently being evaluated by our customers and distributors, and the initial reports are excellent. We are commencing production and expect to commence sales of the new Fiber in March 2010.”

About 50% of men over age 55 and greater percentages of men at higher ages suffer from an enlarged prostate, technically benign prostatic hyperplasia or “BPH.” About 1.2 million men worldwide, including about 200,000 in the United States, undergo a surgical or laser procedure each year to treat BPH. Our new VaporMAX® Side Firing Laser Fiber has been cleared for sale by the FDA for use with our Holmium Lasers and other Holmium Lasers with a compatible connector, such as Lumenis’ Holmium Laser, for the treatment of BPH.

When Lumenis, Ltd. (“Lumenis”) and its distributor in the U.S. and Japan, Boston Scientific Corporation, successfully complete physician evaluations of our new Fiber and their audit of our manufacturing process and quality system, a differently appearing version of our new Side Firing Fiber will be marketed by Lumenis under its DuraMAX trademark by Boston Scientific Corporation in the U.S. and Japan, and throughout the rest of the world by Lumenis’ direct sales force in Europe, China, India and other countries. Lumenis is based in Israel and is the world’s largest medical laser manufacturer, with revenues of about $250 million.

Trimedyne manufactures proprietary Holmium lasers and patented, disposable and reusable fiber optic laser energy delivery devices. For product, financial and other information, visit our website, http://www.trimedyne.com.

“Safe Harbor” Statement Under the Private Securities Litigation Reform Act:

Statements in this news release may contain forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934, including words like “expect,” “anticipate,” “may,” “could” and others. Such statements may involve various risks and uncertainties, some of which may be discussed in the Company’s current 10-KSB Report and other SEC reports. There is no assurance such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.

 TRIMEDYNE, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS ASSETS As of September 30, ---------------------------------- 2009 2008 ------------ ----------- Current assets: Cash and cash equivalents $ 1,621,000 $ 2,007,000 Trade accounts receivable, net of allowance for doubtful accounts of $12,000 and $12,000, respectively 988,000 954,000 Inventories 2,266,000 2,584,000 Other current assets 226,000 171,000 ------------ ------------ Total current assets 5,101,000 5,871,000 Property and equipment, net 1,168,000 1,382,000 Other 87,000 83,000 Goodwill 544,000 544,000 ------------ ------------ $ 6,900,000 $ 7,725,000 ============ ============ LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 449,000 $ 256,000 Accrued expenses 497,000 469,000 Deferred revenue 100,000 75,000 Accrued warranty 54,000 54,000 Income tax payable 20,000 -- Current portion of note payable and capital leases 209,000 237,000 ------------ ------------ Total current liabilities 1,329,000 1,091,000 Note payable and capital leases, net of current portion 232,000 400,000 Deferred rent 51,000 73,000 ------------ ------------ Total liabilities 1,612,000 1,564,000 ------------ ------------ Commitments and contingencies Stockholders’ equity: Preferred stock - $0.01 par value, 1,000,000 shares authorized, none issued and outstanding -- -- Common stock - $0.01 par value; 30,000,000 shares authorized, 18,467,569 shares issued, 18,365,960 shares outstanding at September 30, 2009 and 2008 186,000 186,000 Additional paid-in capital 51,461,000 51,425,000 Accumulated deficit (45,646,000) (44,737,000) ------------ ------------ 6,001,000 6,874,000 Treasury stock, at cost (101,609 shares) (713,000) (713,000) ------------ ------------ Total stockholders’ equity 5,288,000 6,161,000 ------------ ------------ $ 6,900,000 $ 7,725,000 ============ ============ TRIMEDYNE, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended Year Ended September 30, September 30, ------------------------ -------------------------- 2009 2008 2009 2008 ----------- ----------- ------------ ------------ Net Revenues $ 2,112,000 $ 1,781,000 $ 7,422,000 $ 5,871,000 Cost of sales: 1,237,000 1,266,000 4,637,000 4,163,000 ----------- ----------- ------------ ------------ Gross profit $ 875,000 $ 515,000 2,785,000 $ 1,708,000 Selling, general and administrative expenses 641,000 593,000 2,683,000 2,373,000 Research and development expenses 385,000 317,000 1,316,000 1,311,000 ----------- ----------- ------------ ------------ Loss from operations $ (151,000) $ (395,000) $ (1,214,000) $ (1,976,000) Other income, net 134,000 59,000 333,000 399,000 ----------- ----------- ------------ ------------ Loss before provision for income taxes $ (17,000) $ (336,000) $ (881,000) $ (1,577,000) Provision for income taxes 20,000 -- 28,000 13,000 ----------- ----------- ------------ ------------ Net loss $ (37,000) $ (336,000) $ (909,000) $ (1,590,000) =========== =========== ============ ============ Basic and diluted net loss per share $ 0.00 $ (0.02) $ (0.05) $ (0.09) =========== =========== ============ ============ Basic and diluted weighted average common shares outstanding: 18,365,960 18,365,960 18,365,960 18,365,960 =========== =========== ============ ============