SOURCE: Trimedyne, Inc.

February 15, 2010 10:00 ET

Trimedyne Reports Its Financial Results for the Quarter Ended December 31, 2009

LAKE FOREST, CA--(Marketwire - February 15, 2010) - TRIMEDYNE, INC. (OTCBB: TMED) today reported its financial results for the quarter ended December 31, 2009.

Revenues for the quarter were $1,654,000, an increase of 3% from revenues of $1,610,000 for the prior year's quarter. Trimedyne had an unfilled order backlog of $100,000 at December 31, 2009. Had the backlog items been shipped by December 31, 2009, revenues for the quarter would have been $1,754,000, an increase of 10% over revenues for the same quarter of the prior year. The Company had a net loss of $300,000 or $0.016 per share for the current quarter, compared to a loss of $445,000 or $0.024 per share for the same quarter of the prior year.

Marvin P. Loeb, Sc.D., CEO & Chairman of Trimedyne, said, "We regret not being at break-even or in the black in the current Quarter. However, use of our new VaporMAX® Side Firing Fiber by physicians in the U.S. and overseas has resulted in positive feedback, and we expect sales of this new Fiber will contribute to our financial results in the first calendar quarter of this year and thereafter.

Trimedyne manufactures proprietary Holmium lasers and patented fiber optic laser devices for a variety of minimally invasive surgical procedures, many of which are performed on an outpatient basis at substantially less cost than conventional surgery. For product, press release, financial 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 Form 10-K for the year ended September 30, 2009 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
                                      December 31, 2009 September 30, 2009
                                      ----------------- ------------------

Current assets:
  Cash and cash equivalents          $        1,131,000 $        1,621,000
  Trade accounts receivable, net of
   allowance for doubtful accounts
   of $12,000 and $12,000,
   respectively                                 936,000            988,000
  Inventories                                 2,576,000          2,266,000
  Other current assets                          141,000            226,000
                                     ------------------ ------------------
      Total current assets                    4,784,000          5,101,000

Property and equipment, net                   1,115,000          1,168,000
Other                                            82,000             87,000
Goodwill                                        544,000            544,000
                                     ------------------ ------------------
    Total Assets                     $        6,525,000 $        6,900,000
                                     ================== ==================

       LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Accounts payable                   $          427,000 $          449,000
  Accrued expenses                              513,000            497,000
  Deferred revenue                              100,000            100,000
  Accrued warranty                               49,000             54,000
  Income tax payable                             25,000             20,000
  Current portion of note payable
   and capital leases                           187,000            209,000
                                     ------------------ ------------------
    Total current liabilities                 1,301,000          1,329,000

Note payable and capital leases,
 net of current portion                         188,000            232,000
Deferred rent                                    42,000             51,000
Long term warrant liability                      33,000                 --
                                     ------------------ ------------------

    Total liabilities                         1,564,000          1,612,000
                                     ------------------ ------------------
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
   December 31, 2009 and September
   30, 2009, 18,365,960 shares
   outstanding at December 31, 2009
   and September 30, 2009                       186,000            186,000
  Additional paid-in capital                 51,232,000         51,461,000
  Accumulated deficit                       (45,740,000)       (45,646,000)
                                     ------------------ ------------------
                                              5,674,000          6,001,000
  Treasury stock, at cost
  (101,609 shares)                             (713,000)          (713,000)
                                     ------------------ ------------------

   Total stockholders' equity                 4,961,000          5,288,000
                                     ------------------ ------------------

   Total liabilities and
    stockholder's equity             $        6,525,000 $        6,900,000
                                     ================== ==================

                                TRIMEDYNE, INC.
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (UNAUDITED)


                                                For the Three Months Ended
                                                       December 31,

                                                   2009           2008
                                               ------------   ------------
Net revenues                                   $  1,654,000   $  1,610,000
Cost of revenues                                  1,076,000      1,076,000
                                               ------------   ------------
  Gross profit                                      578,000        534,000

Operating expenses:
  Selling, general and administrative               629,000        716,000
  Research and development                          305,000        296,000
                                               ------------   ------------
    Total operating expenses                        934,000      1,012,000
                                               ------------   ------------

(Loss) from operations                             (356,000)      (478,000)

Other income, net                                    61,000         38,000
                                               ------------   ------------

(Loss) before income taxes                         (295,000)      (440,000)

Provision for income taxes                            5,000          5,000
                                               ------------   ------------

Net (loss)                                     $   (300,000)  $   (445,000)
                                               ============   ============

Net (loss) per share:

  Basic                                        $      (0.02)  $      (0.02)
                                               ============   ============
  Diluted                                      $      (0.02)  $      (0.02)
                                               ============   ============

Weighted average number of shares outstanding:

  Basic                                          18,365,960     18,365,960
                                               ============   ============
  Diluted                                        18,365,960     18,365,960
                                               ============   ============

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