IntraLase Recently Received 510(k) Approval From FDA to Market Femtosecond
                            Laser Keratome System

    WAYNE, Pa., March 27 /PRNewswire/ -- Escalon Medical Corp.
(Nasdaq: ESMC) today reported on the significant progress at IntraLase
Corporation.  IntraLase, in which Escalon Medical currently holds an equity
investment, was created in December 1997 through the combination of the
Company's ultrafast laser business with the licenses and technology of the
University of Michigan.
    IntraLase's Femtosecond Laser Keratome System was granted 510(k) marketing
approval by the FDA in December 1999.  This clearance enables IntraLase to
market, sell and distribute its laser system as an alternative to mechanical
microkeratomes, which uses blades to create a corneal flap prior to laser in
situ keratomileusis (LASIK) vision correction procedures.  IntraLase plans to
begin selling the laser device at the American Academy of Ophthalmology
meeting in Dallas in October 2000.  To fund the continued development of this
system, IntraLase also raised $7.5 million in September 1999 and plans to
raise additional funds later in the year to support the Company's
manufacturing and marketing efforts.
    LASIK procedures are the fastest growing segment of the laser business.
According to Medical Insight, Inc., a market research firm, over 1.0 million
laser vision correction procedures were performed using mechanical
microkeratomes last year in the U.S. alone.  LASIK procedures typically offer
less pain, a faster recovery and the ability to treat higher degrees of myopia
when compared to photorefractive keratectomy (PRK).
    In a LASIK procedure today, surgeons first peel back the outer cornea with
a microkeratome, or mechanical knife.  They then laser-sculpt the cornea with
an eximer laser, flattening it to correct for myopia and sculpting a steeper
contour to correct for farsightedness.  The flap is then replaced.  LASIK
surgery, while extremely precise, requires significant training for surgeons
and a longer learning curve than for other procedures such as PRK.  In
inexpert hands, the flap can be sliced inaccurately, or it can pucker,
impairing vision.
    Instead of cutting the flap manually, IntraLase's Femtosecond Laser
Keratome System uses a high speed, low power laser to photo disrupt cells just
below the corneal surface and thereby create the flap.  The system provides
surgeons with micron-level accuracy never before achieved, the safety of lower
intraocular pressure during the procedure and a minimal learning curve, for an
entirely new level of safety and control.
    Randy Alexander, President and Chief Executive Officer of IntraLase
commented, "We are very pleased with this FDA clearance, allowing IntraLase
to deliver exciting new technology into the world's largest market for
vision correction.  Clinical results in our European patients have been
excellent, displaying extremely high reproducibility of flap parameters and
post-operative flap stability.  It will be exciting to offer these and other
laser microkeratome advantages to U.S. patients."
    Richard J. DePiano, Chairman and Chief Executive Officer of Escalon added,
"IntraLase has made considerable progress since its creation just over two
years ago.  While the IntraLase laser is configured to create superior hinges
for the popular LASIK procedure, this is only the first and simplest
application of the fascinating technology.  Many new applications are on the
horizon.  We hope surgeons will eventually view the IntraLase laser as a
multi-purpose tool, replacing a stable of microkeratomes for high volume
surgeries."
    Founded in December 1997, IntraLase, Corp. is a privately-held company
that combines licenses and technology from the University of Michigan (home of
the world-renowned Center for Ultrafast Optical Science), Escalon Medical
Corp. and its own in house research in order to develop the next generation
refractive laser.  The Company's all solid-state femtosecond systems represent
a significant advance in vision correction technology, providing micron range
surgical precision, without the need for a knife incision.  In addition to the
safety and performance benefits this affords, technical advantages make these
systems significantly less expensive to own and operate compared to current
eximer lasers.  IntraLase has offices in Irvine, California and Ann Arbor,
Michigan.
    Founded in 1987, Escalon develops, markets and distributes ophthalmic
surgical and pharmaceutical products as well as vascular access devices to
help 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.
    To receive additional information on Escalon Medical Corp., via fax, at no
charge, dial 1-800-PRO-INFO and enter code ESMC.

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