WAYNE, Pa., Jan. 22 /PRNewswire/ -- Escalon Medical Corporation
(Nasdaq: ESMC) today announced that it has completed its previously announced
acquisition of the assets and operations of the Vascular Access Business Unit
of Radiance Medical Systems, Inc. (Nasdaq: CCVD), formerly CardioVascular
Dynamics, Inc.
    Under the terms of the agreement, Escalon will pay Radiance an initial
payment, a second payment upon the transfer of the assets and technology, and
royalties on net sales of the former Radiance products for a period of five
years.  Further terms were not disclosed.
    "The acquisition of the Vascular Access business of Radiance Medical
Systems is an exciting opportunity for Escalon," commented Richard J. DePiano,
Chairman and Chief Executive Officer of Escalon Medical Corporation.  "Our
stated strategy has been to invest in profitable niche products and markets
where the Company can become a leader.  We believe vascular access is such a
market.  The acquisition will also allow us to diversify our target markets
and should provide an additional source of cash flow and growth to help fund
our promising R&D programs."
    Mr. DePiano added, "Revenues in calendar 1998 for the Vascular Access
Business Unit were in the $2.8-$3.0 million range.  We plan to operate the
business out of our recently expanded, FDA-approved manufacturing plant in
Wisconsin which has recently received its CE Mark and ISO 9001 approval.
Products will be sold through distributors that were retained by Radiance in
1998."
    Vascular Access technology involves the use of a tiny doppler ultrasound
circuit placed at the tip of a specially-designed vascular access needle on a
catheter.  When placed in proximity to the vascular system, Vascular Access
devices can help the physician locate the blood vessel, determine whether the
vessel is an artery or vein, and provide access to the intended vascular site.
Once in position within the vessel, the physician can begin the planned
treatment via the conduit created by the Vascular Access device.  During the
past two years, engineers have miniaturized this doppler chip technology to
less then 10 thousands of an inch (0.010").  This small size is required to
locate the tiny arteries and veins of small infants.
    Founded in 1987, Escalon develops, markets and distributes ophthalmic
surgical and pharmaceutical products which provide a base of positive cash
flow to fund a targeted research and development effort.  The Company utilizes
strategic partnerships to help finance its development programs and is also
seeking acquisitions to further diversify its product line to achieve critical
mass in sales and take better advantage of the Company's distribution
capabilities.  Escalon has headquarters in Wayne, Pennsylvania and
manufacturing operations near Milwaukee, Wisconsin.
    Except for historical information contained herein, this press release
contains forward looking statements which include statements about the future
potential of the Vascular Access Business, the accuracy of which is
necessarily subject to risks and uncertainties.  Actual results may be
affected by, among other things, risks and uncertainties related to new
product development and introduction cycles, research and development
activities, including failure to demonstrate clinical efficacy, delays by
regulatory authorities, scientific and technical advances by the Company or
third parties, introduction of competitive products, third party reimbursement
and physician training, and other risk factors and matters set forth the
Company's Annual Report on Form 10-K for the fiscal year ended June 30, 1998
and Amendment No. 3 of the Registration Statement on Form 3 (Registration
Statement No. 333-44513), which has been filed with the Securities and
Exchange Commission.

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