WAYNE, Pa., Feb. 2 /PRNewswire/ -- Escalon Medical Corp. (Nasdaq: ESMC)
today announced that it has obtained a $2.0 million credit facility from
PNC Bank, N.A.  The facility includes a $1.0 million working line of credit
and a $1.0 million five-year term loan.
    In addition, the Company announced that it has completed the repurchase of
its Series A 6% Convertible Preferred Stock.  Having received shareholder
approval at its annual meeting on January 21, the Company has issued 225,000
shares of its Common Stock and has redeemed the remaining outstanding shares
of its Preferred Stock for a price of $818,000 plus accrued and unpaid
dividends.
    "The new credit facility is evidence of the positive steps that management
has taken to strengthen the operations of the Company," said Richard J.
DePiano, Escalon's Chairman and Chief Executive Officer.  "The facility will
increase our working capital, which was drawn down by our recent acquisition
of the vascular access business of Radiance Medical Systems and by the
repurchase of our convertible preferred stock."
    Mr. DePiano added, "We believe the increased flexibility that the credit
facility provides combined with the opportunities from the Company's newly
acquired vascular access business, Ocufit SR(R), for which the Company and
West Pharmaceutical Services recently filed an IND, and its research and
development efforts, should lead to continued progress at Escalon Medical."
    Founded in 1987, Escalon develops, markets and distributes ophthalmic
surgical and pharmaceutical products as well as vascular access devices 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.
    Note:  This press release contains statements that are forward-looking,
including statements about the Company's future prospects.  They are based on
the Company's current expectations and are subject to a number of
uncertainties and risks, and actual results may differ materially.  The
uncertainties and risks include whether the Company is able to improve upon
the operations of the vascular access business, continue to make gains in its
research and development programs as well as general economic conditions.
Further information about these and other relevant risks and uncertainties may
be found in the Company's report on Form 10-K, and its other filings with the
Securities and Exchange Commission, all of which are available from the
Commission as well as other sources.

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