CLOSURE Medical Corporation
5250 Greens Dairy Road
Raleigh, NC 27616
Nasdaq: CLSR
AT THE COMPANY AT THE FINANCIAL RELATIONS BOARD
Robert V. Toni, President & CEO
J. Blount Swain, CFO
CLOSURE Medical Corporation
(919) 876-7800
For General Info: Paul G. Henning (212) 661-8030
For Analyst Info: Cecelia Heer (212) 661-8030
For Media Info: Deanne Eagle (212) 661-8030

FOR IMMEDIATE RELEASE: February 16, 2000

CLOSURE MEDICAL CORPORATION REPORTS FOURTH QUARTER RESULTS

Raleigh, NC, February 16, 2000 – CLOSURE Medical Corporation (Nasdaq: CLSR), a medical tissue cohesive products company, today announced that total revenues for the three months ended December 31, 1999 were $2,544,000 compared to $3,257,000 in the 1998 corresponding period. The net loss for the 1999 quarter was $773,000, or ($.06) per basic and diluted share, compared to a net loss of $991,000 or ($.07) per basic and diluted share in the corresponding 1998 period.

Revenues for the year ended December 31, 1999, were $13,370,000, compared to $9,579,000, including license and product development revenues of $1,500,000, in the corresponding 1998 period. For the year ended December 31, 1999, the Company reported a net loss of $2,527,000 or ($.19) per basic and diluted share, compared to a net loss of $4,773,000 or ($.36) per basic and diluted share, for the same period of 1998.

Cash and cash equivalents and total investments were $12.6 million at December 31, 1999 compared to $16.7 million at December 31, 1998.

“We are pleased that our marketing partner, Ethicon, Inc., initiated the launch of DERMABOND® Topical Skin Adhesive into the operating room for selected indications late in the fourth quarter of 1999”, said Robert V. Toni, President and Chief Executive Officer. “We believe the operating room incision market represents the largest potential for DERMABOND® usage which we estimate to be approximately 50 million procedures worldwide per year.”

“Closure has continued to reduce expenses during the fourth quarter while maintaining new product development for LIQUIDERM®, a liquid bandage for minor cuts, scrapes, and abrasions, line extensions for DERMABOND® and research on several potential new products,” added Toni.

CLOSURE Medical Corporation, headquartered in Raleigh, North Carolina, develops, manufactures and commercializes medical tissue adhesive products based on its proprietary cyanoacrylate technology. CLOSURE’s nonabsorbable tissue adhesive products may be used to replace sutures and staples for certain topical wound closure applications, while its internal tissue adhesive products can potentially be used for internal wound closure and management. Currently marketed nonabsorbable tissue adhesive products include DERMABOND®* Topical Skin Adhesive, which is used to replace sutures and staples for closure of certain lacerations and incisions, OCTYLDENT* adhesive, which is used as an adjunct in the treatment of adult periodontal disease; and the NEXABAND* line of topical adhesives, which are used in veterinary wound closure and management.

* DERMABOND® is a trademark of Ethicon, Inc.; SOOTHE-N-SEAL, OCTYLDENT and NEXABAND are all trademarks of CLOSURE Medical Corporation.

To receive CLOSURE’s latest news release and other corporate documents via fax, at no cost, call 1-800-PRO-INFO, use the Company’s symbol CLSR. Or visit the Financial Relations Board’s website at www.frbinc.com.

This release contains certain forward-looking statements which involve known and unknown risks, delays, uncertainties or other factors not under the Company’s control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance, or other expectations implied by these forward-looking statements. These factors include, but are not limited to the early stage of commercialization of the Company products; the progress of its research and development programs for future products; the need for regulatory approval and effects of governmental regulation; technological uncertainties; dependence on marketing partners, and dependence on patents and trade secrets, as well as those detailed in the Company’s Annual Report on Form 10-K for the year ended December 31, 1998 filed with the Securities and Exchange Commission.

Financial Tables Follow

CLOSURE Medical Corporation
Statement of Operations
(Unaudited)
(In thousands, except per share data)

 
THREE MONTHS ENDED
TWELVE MONTHS ENDED
 
December 31
December 31
 
1999
1998
1999
1998
         
Product sales
$ 2,544
$ 3,257
$ 13,370
$ 8,079
License and product development revenues
-
-
-
1500
Total revenues
2,544
3,257
13,370
9,579
Cost of products sold
932
1,032
4,722
3,480
Gross profit
1,612
2,225
8,648
6,099
 
Research, development and regulatory affairs expenses
1,214
1,887
6,296
6,297
General and administrative expenses
1,304
1,518
5,404
5,407
Total operating expenses
2,518
3,405
11,700
11,704
 
Income (loss) from operations
(906)
(1,180)
(3,052)
(5,605)
Interest expense
(74)
(92)
(344)
(383)
Investment and interest income
207
281
869
1,215
 
Net income (loss)
$ (773)
$(991)
$ (2,527)
$ (4,773)
 
Shares used in computation of net income (loss) per share:  
Basic
13,345
13,286
13,324
13,270
Diluted
13,345
13,286
13,324
13,270
Net income (loss) per share:
Basic
$(0.06)
$ (0.07)
$ (0.19)
$(0.36)
Diluted
$ (0.06)
$ (0.07)
$(0.19)
$ (0.36)

CLOSURE Medical Corporation
Balance Sheet
(In thousands)

 
December 31, 2002
December 31, 2001
Cash, cash equivalents and investments
$17,042
$ 12,958
Working capital
16,815
9,321
Total assets
36,747
25,340
Total debt obligations
336
1,269
Total stockholders' equity
29,190
17,247
 
Total shares outstanding
13,549
13,508