-- Unveils the NB2000(TM) Needle to Improve Surgical Pain Relief

   -- Introduces a Surgical Knife with Revolutionary Retractable MVR Blade

    WAYNE, Pa., Oct. 12 /PRNewswire/ -- Escalon Medical Corp. (Nasdaq: ESMC)
today announced that its Escalon Vascular division has acquired the worldwide
manufacturing and distribution rights to the NB2000(TM) needle, the first
Doppler Ultrasound device designed to administer regional anesthesia.  In
addition, Escalon Medical will be unveiling a surgical knife with a new,
revolutionary retractable MVR blade at the American Academy of Ophthalmology
Annual Meeting October 22-25 in Dallas, Texas.  The MVR blade is designed to
eliminate accidental sticks during surgery and is expected to be featured as
part of the Retina Subspecialty Day at the AAO Meeting.

    NB2000(TM)
    This new patented device for pain management is the first major product
development for Escalon since it acquired the vascular access division of
Radiance Medical Systems, Inc. in January 1999.  NB2000(TM) is expected to
expand the use of regional anesthesia in upper and lower extremity surgeries
by improving effectiveness and decreasing complications.  This target market
represents approximately 1.0 million patients annually in the U.S.
    The NB2000(TM) needle combines ultrasound with nerve stimulator
technology, an important innovation.  Ultrasound guidance allows a physician
to avoid veins, arteries, and other vital structures near nerves while the
nerve stimulator assures accurate placement of the local anesthetic.  The
disposable needle can be used by anesthesiologists, nurse anesthetists, pain
specialists and surgeons in a variety of settings for both ambulatory and
inpatient surgery.
    Clinical trials have recently been completed at a major university
hospital and lend support to the product's effectiveness.  Escalon hopes to
apply for FDA approval in the form of a 510-K by the end of calendar 2000 and
introduce the product in fiscal 2001.
    Escalon Chairman and Chief Executive Officer, Richard J. DePiano,
commented, "We are very excited about the NB2000(TM).  The precision of the
device is its most significant advantage, assuring the anesthetist of accurate
delivery of the anesthetic while helping to avoid veins and arteries.  We
believe this is a significant improvement in the delivery of pain control and
has the potential to expand the use of regional anesthesia while helping to
minimize its complications."

    MVR Blade
    Escalon Medical acquired rights to the patent for the MVR blade and
developed the product in-house.  The MVR blade, which comes in five styles,
has a conventional design yet offers significant advantages over similar knife
products for use in vitreoretinal and anterior segment or cataract surgery.
First, the blade is disposable, easily retracted and is engaged with just one
touch.  The MVR blade also boasts a positive-feel lock that ensures that the
blade is secured in the desired position.  More importantly, after use, the
blade spring-retracts completely within the handle.  This mechanism helps
eliminate accidental sticks and the potential transmission of infectious
diseases from the patient to the surgeon.
    Mr. DePiano, commented, "We are very excited by the positive feedback on
this new product in advance of the AAO Meeting.  The market for vitreoretinal
surgeries is approximately 150,000 procedures annually with the market for
cataract procedures being significantly greater than that.  We are extremely
pleased that Escalon will be able to offer surgeons a superior product in
terms of safety, helping to minimize the risk of performing these types of
procedures."
    Mr. DePiano concluded, "These are two excellent examples of the types of
products that we want to focus on at Escalon -- niche products in markets
where we have the opportunity to be a significant player.  The NB2000(TM) is
the first new product introduction in our vascular access line, which was
acquired as part of the Company's diversification strategy, while the MVR
blade adds yet another proprietary product to our growing ophthalmic
portfolio.  Initial sales of both products are expected in the third fiscal
quarter."
    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
New Berlin, 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 complete the
development of its new products, gain approval from the FDA and successfully
bring the products to market.  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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