CONTACTS 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: Nicole Salas (212) 661-8030
For Media Info: Deanne Eagle (212) 661-8030

FOR IMMEDIATE RELEASE: April 22, 1999

CLOSURE MEDICAL CORPORATION REPORTS FIRST QUARTER RESULTS

Raleigh, NC, April 22, 1999-- CLOSURE Medical Corporation (Nasdaq: CLSR), a medical tissue cohesive products company, today announced that total revenues for the three months ended March 31, 1999 were $3,817,000 compared to $770,000 in the 1998 corresponding period. The net loss for the 1999 quarter was $565,000, or ($.04) per basic and diluted share, compared to a net loss of $2.0 million, or ($.15) per basic and diluted share in the corresponding 1998 period.

Cash and cash equivalents and total investments were $13.8 million at March 31, 1999 compared to $16.7 million at December 31, 1998.

"We are encouraged by the steady market penetration of DERMABOND in both the domestic and international marketplaces," said Robert V. Toni, President and Chief Executive Officer of CLOSURE Medical Corporation, "and by its increasing recognition and acceptance within the medical community and the patient population."

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

* DERMABOND is a trademark of Ethicon, Inc.; OCTYLDENT and NEXABAND are registered 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 ticker, 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 deveopment programs for future nonabsorbable and absorbable 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 Information Follows:

CLOSURE Medical Corporation
Balance Sheet
(In thousands, except for per share data)

 
March 31,1999
December 31,1998
Assets
Unaudited  
Current assets:
Cash and cash equivalents
$508
$ 824
Short-term investments
11,750
14,275
Restricted investments
1,500
1,603
Accounts receivable
1,799
1,191
Inventories
1,053
1,008
Prepaid expenses
257
286
 
Total current assets
16,867
19,187
 
Furniture, fixtures and equipment, net
8,331
7,707
Intangible assets, net
570
526
 
Total assets
$ 25,768
$ 27,420
 
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$ 1,195
$ 1,721
Accrued expenses
1,214
1,705
Deferred revenue
1,079
1,245
Capital lease obligations
185
245
Current portion of long-term debt
2,500
2,650
 
Total current liabilities
6,173
7,566
 
Deferred revenue
670
670
Capital lease obligations
934
934
 
Total liabilities
7,777
9,170
 
Stockholders’ equity:
Preferred Stock, $.01 par value. Authorized 2,000 shares;none issued or outstanding.
-
-
Common Stock, $.01 par value. Authorized 35,000 shares; issued and outstanding 13,308 and 13,256 shares, respectively.
133
133
Additional paid-in capital
46,588
46,358
Accumulated deficit
(28,413)
(27,848)
Deferred compensation on stock options
(317)
(393)
 
Total stockholders’ equity
17,991
18,250
 
Total liabilities and stockholders’ equity
$25,768
$ 27,420

 

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

 
THREE MONTHS ENDED
 
March 31,
 
1999
1998
         
Product sales
$3,817
$ 770
Cost of products sold
1,176
534
Gross profit
2,641
236
 
Research, development and regulatory affairs expenses
1,862
1,358
Selling and administrative expenses
1,489
1,100
Total operating expenses
3,351
2,458
 
Loss from operations
(710)
(2,222)
Interest expense
(91)
(88)
Investment and interest income
236
354
     
Net loss
$(565)
$(1,956)
 
Shares used in computation of net loss per share:
 
Basic
13,304
13,252
Diluted
13,304
13,252
 
Net loss per share:
$(0.15)
$ (0.12)
Basic
$(0.04)
$(0.15)
Diluted
$(0.04)
$(0.15)