WAYNE, Pa., Sept. 14 /PRNewswire/ -- Escalon Medical Corp. (Nasdaq: ESMC)
today announced that Escalon Medical Imaging, LLC, its partnership with
MegaVision, Inc., a Santa Barbara, Calif. based designer and manufacturer of
high-end digital cameras, is preparing to begin beta testing of its ophthalmic
digital camera system.  Fifty ophthalmic institutions will be invited to
participate in the upcoming beta testing, with ten institutions ultimately
being selected.
    Ophthalmologists routinely use photography as a diagnostic tool to detect
problems in the retinas of diabetic and elderly patients as well as in laser
surgery.  In May 2000, Escalon Medical partnered with MegaVision, Inc. to form
Escalon Medical Imaging, LLC to commercialize and market a best-in-class
digital camera system for use by ophthalmologists.  The digital cameras
produced by MegaVision offer high-resolution imaging that is superior to
cameras that use conventional film when used for ophthalmology.  This
high-resolution picture is the result of a chip that provides 2,000 by
3,000 line resolution as well as superior image processing and capture.
    Beta testing at the ten selected institutions is expected to begin in
September of this year, with results expected in October or November of 2000.
    Escalon Chairman and Chief Executive Officer, Richard J. DePiano,
commented, "We are extremely excited about the potential of MegaVision's
digital cameras for use in ophthalmology.  The higher quality images produced
by the digital imaging system will help facilitate the detection of retinal
disorders.  These images can be easily viewed through a personal computer for
analysis and then stored electronically.  The ability to obtain an instant,
high-resolution image means that patients can be examined, diagnosed, and
treated in the same visit, improving patient outcomes while lowering costs."
    Alpha testing of the digital cameras at the ophthalmic departments of two
universities is also yielding very promising results.  Peter Buch, Director of
Ophthalmic Photography at the University of Buffalo commented, "It took one
week of photographing patients using the Escalon Medical Imaging's CFA Digital
System for our attending ophthalmologists to proclaim: 'We do not need to use
film ever again'."

    About MegaVision
    The inventor of the first commercial digital camera, among other digital
photography 'firsts,' MegaVision has been a designer and manufacturer of
high-end digital cameras and accessories since 1983.  MegaVision is based in
Santa Barbara, Calif.

    About Escalon Medical
    Founded in 1987, Escalon develops, markets and distributes ophthalmic
diagnostic, surgical and pharmaceutical products as well as vascular access
devices.  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 in Long Island, New York and
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.  Actual results may be affected by, among other
things, uncertainties related to recent acquisitions, uncertainties and risks
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.  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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