Trimedyne, Inc. Reports Its Financial Results for the Quarter Ended March 31, 2011

LAKE FOREST, CA--(Marketwire - May 23, 2011) - TRIMEDYNE, INC. (OTCBB: TMED) today reported its financial results for the quarter ended March 31, 2011.

Revenues for the current quarter were $1,880,000, an increase of 8.9% from revenues of $1,727,000 for the prior year’s quarter. The $153,000 increase in revenues was due to higher revenues from sales of lasers, compared to the year earlier period. The Company had a net loss of $75,000 or $0.00 per share for the current quarter, compared to a loss of $307,000 or $0.02 per share for the prior year quarter.

For the six month period ended March 31, 2011, revenues were $3,515,000, an increase of 4.0% from $3,381,000 for the same period of 2010. However, for the six months ended March 31, 2011, the Company’s net loss was $368,000 or $0.02 per share, a 39.4% decrease from a net loss of $607,000 or $0.03 per share for the same six month period of 2010.

All of the above per share numbers are based on a weighted average of 18,365,960 shares outstanding.

Commenting on the financial results for the quarter, Marvin P. Loeb, Sc.D., Chairman of Trimedyne, said, “We are pleased with the 8.9% increase in revenues in the current quarter over the year ago quarter.

“We had a net increase in cash of $58,000 in the current quarter to $2,586,000 at March 31, 2011. We are carefully controlling costs and judicially devoting funds to the development of new products and expanding our sales organization. However, we cannot assure that we will be able to achieve or maintain sales growth or further reduce our costs.”

Trimedyne manufactures proprietary Holmium lasers and patented fiber optic laser devices for vaporizing the prostate to treat BPH, vaporizing excess spinal disc tissue to treat herniated or ruptured discs and in a variety of other, minimally invasive procedures, many of which are performed on an outpatient basis at substantially less cost than conventional surgery. For product, press release, financial, SEC Reports and other information, please visit Trimedyne’s 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,” “may,” “could” and others. Such statements may involve various risks and uncertainties, some of which may be discussed in the Company’s current Form 10-K Report and subsequently filed 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. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) ASSETS March 31, September 30, 2011 2010 ------------ ------------ Current assets: Cash and cash equivalents $ 2,586,000 $ 2,528,000 Trade accounts receivable, net of allowance for doubtful accounts of $12,000 at March 31, 2011 and September 30, 2010 591,000 691,000 Inventories 2,426,000 2,613,000 Other current assets 125,000 177,000 ------------ ------------ Total current assets 5,728,000 6,009,000 Property and equipment, net 1,143,000 908,000 Other 75,000 102,000 Goodwill 544,000 544,000 ------------ ------------ Total Assets $ 7,490,000 $ 7,563,000 ============ ============ LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 392,000 $ 129,000 Accrued expenses 450,000 588,000 Deferred revenue 43,000 75,000 Accrued warranty 40,000 17,000 Income tax payable 11,000 11,000 Current portion of note payable and capital leases 104,000 161,000 Current portion of note payable to related party 125,000 -- Accrued interest due to related party 19,000 3,000 ------------ ------------ Total current liabilities 1,184,000 984,000 Note payable and capital leases, net of current portion 49,000 92,000 Senior secured convertible note to related party, net of discount of $89,000 and $99,000, respectively 411,000 401,000 Note payable to related party, net of current portion 125,000 -- Deferred rent 86,000 80,000 Derivative liabilities 86,000 96,000 ------------ ------------ Total liabilities 1,941,000 1,653,000 ------------ ------------ 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 at March 31, 2011 and September 30, 2010, 18,365,960 shares outstanding at March 31, 2011 and September 30, 2010 186,000 186,000 Additional paid-in capital 51,245,000 51,238,000 Accumulated deficit (45,169,000) (44,801,000) ------------ ------------ 6,262,000 6,623,000 Treasury stock, at cost (101,609 shares) (713,000) (713,000) ------------ ------------ Total stockholders’ equity 5,549,000 5,910,000 ------------ ------------ Total liabilities and stockholders’ equity $ 7,490,000 $ 7,563,000 ============= ============ TRIMEDYNE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended Six Months Ended March 31, March 31, 2011 2010 2011 2010 ------------ ------------ ------------ ------------ Net revenues $ 1,880,000 $ 1,727,000 $ 3,515,000 $ 3,381,000 Cost of sales 1,103,000 1,126,000 2,129,000 2,202,000 ------------ ------------ ------------ ------------ Gross profit 777,000 601,000 1,386,000 1,179,000 Operating expenses: Selling, general and administrative 709,000 659,000 1,416,000 1,288,000 Research and development 171,000 316,000 381,000 621,000 ------------ ------------ ------------ ------------ Total operating expenses 880,000 975,000 1,797,000 1,909,000 ------------ ------------ ------------ ------------ Loss from operations (103,000) (374,000) (411,000) (730,000) Other income, net 30,000 71,000 47,000 132,000 ------------ ------------ ------------ ------------ Loss before provision for income taxes (73,000) (303,000) (364,000) (598,000) Provision for income taxes 2,000 4,000 4,000 9,000 ------------ ------------ ------------ ------------ Net loss $ (75,000) $ (307,000) $ (368,000) $ (607,000) ============ ============ ============ ============ Net loss per share: Basic $ (0.00) $ (0.02) $ (0.02) $ (0.03) ============ ============ ============ ============ Diluted $ (0.00) $ (0.02) $ (0.02) $ (0.03) ============ ============ ============ ============ Weighted average number of shares outstanding: Basic 18,365,960 18,365,960 18,365,960 18,365,960 ============ ============ ============ ============ Diluted 18,365,960 18,365,960 18,365,960 18,365,960 ============ ============ ============ ============