ECI Encision,

BOULDER, Colo., July 31 /PRNewswire-FirstCall/ -- Encision Inc. (AMEX:ECI), a medical device company owning patented surgical technology that is emerging as a standard of care in minimally-invasive surgery, reported its financial results for its first quarter ended June 30, 2008. Net sales for the first quarter of fiscal year 2009, the three-months period ended June 30, 2008, totaled $3.09 million, representing a 16% increase over net sales of $2.66 million for the prior fiscal year's first quarter. The Company recorded a net loss of $164 thousand or $.03 per share for the first quarter of fiscal year 2009 compared to a net loss of $295 thousand or $.05 per share for the first quarter of fiscal year 2008. Gross profit margin for the first quarter of fiscal year 2009 was 60.3% as compared to 61.2% for the first quarter of fiscal year 2008. The gross profit margin decrease was primarily due to increased scrap costs of 0.9% and increased sales of lower gross profit margin products. The decrease was partially offset by a higher gross profit margin for our internally manufactured disposable scissor inserts. "Over the past two years, we have made major investments in our company to increase long-term value for our shareholders," said Jack Serino, President and CEO of Encision Inc. "We have made a major investment in manufacturing equipment, thereby reducing manufacturing costs, expanding our manufacturing capabilities, and opening the possibility of original equipment manufacturing. Additionally, we have made a major investment in expanding our direct sales force to provide a focused selling effort for our patented patient safety technology and to provide improved customer service. Finally, we have made a major investment in developing disposable product alternatives for all of our reusable products and implementing redesigns to existing products to elevate them to best of class status. It is our belief that the major investments we have made will begin to benefit our shareholders in our current fiscal year." Encision Inc. designs, develops, manufactures and markets innovative surgical devices that allow surgeons to optimize technique and patient safety during a broad range of surgical procedures. Based in Boulder, Colorado, the Company pioneered the development of patented AEM(R) Laparoscopic Instruments to improve electrosurgery and reduce the chance for patient injury in minimally invasive surgery. In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the Company notes that statements in this press release and elsewhere that look forward in time, which include everything other than historical information, involve risks and uncertainties that may cause actual results to differ materially from those indicated by the forward- looking statements. Factors that could cause the Company's actual results to differ materially include, among others, its ability to increase net sales through the Company's distribution channels, insufficient quantity of new account conversions, insufficient cash to fund operations, scale up production to meet delivery obligations, delay in developing new products and receiving FDA approval for such new products and other factors discussed in the Company's filings with the Securities and Exchange Commission. CONTACT: Marcia McHaffie, Encision Inc., 303-444-2600, Encision Inc. Condensed Statements of Operations (Unaudited) (Amounts in thousands, except per share information) June 30, June 30, Three Months Ended 2008 2007 NET SALES $3,094 $2,659 COST OF SALES 1,229 1,031 GROSS PROFIT 1,865 1,628 OPERATING EXPENSES: Sales and marketing 1,374 1,214 General and administrative 367 372 Research and development 289 330 Total operating expenses 2,030 1,916 OPERATING LOSS (165) (288) Interest and other income (expense), net 1 (7) LOSS BEFORE PROVISION FOR INCOME TAXES (164) (295) Provision for income taxes -- -- NET LOSS $(164) $(295) Net loss per share-basic and diluted $(0.03) $(0.05) Encision Inc. Condensed Balance Sheets (Amounts in thousands) June 30, March 31, 2008 2008 (unaudited) (audited) ASSETS Cash and cash equivalents $46 $71 Accounts receivable, net 1,274 1,453 Inventories, net 2,050 2,271 Prepaid expenses 147 99 Total current assets 3,517 3,894 Equipment, net 800 798 Patents, net 200 199 Other assets 46 53 TOTAL ASSETS $4,563 $4,944 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable $611 $537 Accrued compensation 267 392 Other accrued liabilities 437 481 Total current liabilities 1,315 1,410 Long-term debt 433 606 Common stock and additional paid-in capital 19,438 19,387 Accumulated (deficit) (16,623) (16,459) Total shareholders' equity 2,815 2,928 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $4,563 $4,944 DATASOURCE: Encision Inc. CONTACT: Marcia McHaffie of Encision Inc., +1-303-444-2600, Web site: http://www.encision.com/

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