PLC Plc Systems,

PLC Systems Reports Second Quarter Results; Domestic TMR Kit Shipments to Hospitals Increase 29 Percent Sequentially FRANKLIN, Mass., July 27 /PRNewswire-FirstCall/ -- PLC Systems Inc. (AMEX:PLC), a leader in cardiac laser technologies, today reported financial results for the three and six months ended June 30, 2005. Second quarter total revenues were $1,982,000 compared with $1,796,000 in the second quarter of 2004. The net loss for the second quarter of 2005 was $290,000, or $.01 per share, compared to a net loss of $251,000, or $.01 per share, in the second quarter of 2004. Total revenues for the six months ended June 30, 2005 were $3,925,000 compared to total revenues of $3,705,000 for the six months ended June 30, 2004. The net loss for the six months ended June 30, 2005 was $474,000, or $.02 per share, compared to a net loss of $601,000, or $.02 per share, for the six months ended June 30, 2004. During the second quarter of 2005, Edwards Lifesciences Corporation (NYSE:EW), PLC's exclusive U.S. sales and marketing partner, delivered 566 disposable kits to United States hospitals representing an increase of 13 percent over the second quarter of 2004 and 29 percent over the first quarter of 2005. In the second quarter of 2004, a total of 502 disposable kits were shipped to United States hospitals. A total of 439 disposable kits were delivered domestically during the first quarter of 2005. "We are very pleased with the increased TMR kit shipments," said Mark R. Tauscher, president and chief executive officer of PLC Systems. "The second quarter domestic shipments of 566 disposable kits are a record level for our angina relief therapy." During the second quarter of 2005, seven next-generation CO2 Heart Lasers (HL2) were delivered to United States hospitals through Edwards. Four of the seven HL2 shipments were new lasers and three were redeployed lasers. PLC ended the second quarter of 2005 with 179 CO2 Heart Lasers located at heart centers throughout the U.S., comprised of 134 HL2 customers and 45 HL1 customers. During the quarter, PLC shipped Optiwave 980 lasers to Edwards, which generated $192,000 for PLC in the second quarter of 2005. Currently, Edwards is conducting Optiwave 980 System marketing trials. Clinical experience with the Optiwave 980 laser and handpieces will help shape future launch plans. As a result of the marketing trials, PLC does not expect to ship additional Optiwave 980 lasers until Edwards commercially launches the system into the market. Tauscher concluded, "Throughout the year we have focused our efforts on growing PLC beyond TMR. As we enter the second half of 2005, PLC's portfolio includes the CO2 TMR Heart Laser System, the Optiwave 980 System, and an additional internal research and development initiative that is underway. These three programs are in diverse stages of their product life cycles: the CO2 TMR Heart Laser is commercially available and the adoption of TMR continues to improve; the Optiwave 980 is in marketing evaluations under the direction of Edwards Lifesciences; and PLC's new product initiative is in the proof of concept phase. Regarding the R&D project, we are currently undertaking development work necessary to bring the product to market, which if successful will further diversify our business. Most importantly, this project fits within our stated mission of providing innovative technologies for the cardiac and vascular markets." In conjunction with announcing second quarter results, PLC Systems will be hosting a conference call today, July 27, at 11:00 a.m. Eastern Time. The call may be joined via telephone by dialing (888) 396-2369 at least five minutes prior to the start of the call. The passcode is: 87288014. A live Webcast of the call will be available and accessible at the investor relations section of the Company's website at http://www.plcmed.com/. A recording of the conference call will be available for the next month on PLC's website. This press release contains "forward-looking" statements. For this purpose, any statements contained in this press release that relate to prospective events or developments are deemed to be forward-looking statements. Words such as "believes," "anticipates," "plans," "expects," "will" and similar expressions are intended to identify forward-looking statements. Our statements of our objectives are also forward looking statements. While we may elect to update forward-looking statements in the future, we specifically disclaim any obligation to do so, even if our estimates change, and you should not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this press release. Actual results could differ materially from those indicated by such forward-looking statements as a result of a variety of important factors, including we may be unable to successfully develop or manufacture products under our agreements with Edwards; Edwards may decide not to pursue or continue the sales and marketing activities for these products; Edwards may be unsuccessful in distributing these products, our research and development initiative might not result in saleable products, operational changes, competitive developments may affect the market for our products, regulatory approval requirements may affect the market for our products, we may be unable to convince health care professionals and third party payers of the medical and economic benefits of the CO2 Heart Lasers and the Optiwave 980 System, and there can be no assurance that all payers will reimburse health care providers who perform TMR procedures or that reimbursement, if provided, will be adequate, and additional risk factors described in our Report on Form 10-K for the year ended December 31, 2004, and our other SEC reports. PLC Systems, PLC Medical Systems, PLC and CO2 Heart Laser are trademarks of PLC Systems Inc. Edwards Lifesciences, Edwards, and Optiwave 980 are trademarks of Edwards Lifesciences Corporation. PLC SYSTEMS INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) Three Months Ended Six Months Ended June 30, June 30, 2005 2004 2005 2004 Revenues: Product sales -- Edwards $1,438 $1,224 $2,846 $2,586 Product sales -- other 129 130 279 299 Service and placement fees -- Edwards 360 308 671 661 Service and placement fees -- other 55 134 129 159 Total revenues 1,982 1,796 3,925 3,705 Cost of revenues: Product sales -- Edwards 531 494 1,016 1,028 Product sales -- other 69 81 136 137 Service and placement fees -- Edwards 144 140 282 287 Service and placement fees -- other 46 32 84 61 Total cost of revenues 790 747 1,518 1,513 Gross profit 1,192 1,049 2,407 2,192 Operating expenses: Selling, general and administrative 897 866 1,777 1,856 Research and development 649 516 1,220 1,045 Total operating expenses 1,546 1,382 2,997 2,901 Loss from operations (354) (333) (590) (709) Other income, net 64 82 116 108 Net loss $(290) $(251) $(474) $(601) Basic and diluted loss per share $(0.01) $(0.01) $(0.02) $(0.02) Average shares outstanding: Basic 30,070 30,056 30,069 29,990 Diluted 30,070 30,056 30,069 29,990 CONDENSED BALANCE SHEET June 30, December 31, 2005 2004 Cash and short-term investments $9,545 $9,678 Total current assets 12,870 12,787 Total assets 13,373 13,327 Total current liabilities 2,768 2,129 Shareholders' equity 6,330 6,829 Contact: John Jordan Director of Investor Relations 508-541-8800, ext. 145 DATASOURCE: PLC Systems Inc. CONTACT: John Jordan, Director of Investor Relations of PLC Systems Inc., +1-508-541-8800, ext. 145 Web site: http://www.plcmed.com/

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