REDWOOD CITY, Calif., Nov. 2 /PRNewswire/ -- Perclose, Inc. (Nasdaq: PERC)
today reported record quarterly results for the second fiscal quarter ended
September 30, 1999.  For the September quarter revenues were $16.5 million, an
increase of 81 percent from revenues of $9.1 million in the same quarter a
year ago.  Net income in the September quarter was $2.4 million compared with
$755,000 for the same period of the prior year.  Diluted earnings per common
share were $0.20 in the September 1999 quarter compared with $0.07 per common
share in the September 1998 quarter.
    For the six months ended September 30, 1999 revenues were $32.5 million,
up from $17.5 million in the same period a year ago.  Net income in the six
month period was $5.3 million compared with $1.0 million for the six months
ended September 30, 1998.  Diluted earnings per common share were $0.43 for
the six month period ended September 30, 1999 versus $0.09 per common share in
the year ago six month period.
    On July 8, 1999 Perclose and Abbott Laboratories, Inc. announced the
companies had entered into a definitive agreement for Abbott to acquire
Perclose in a stock-for-stock merger designed to provide $54 of Abbott stock
for each Perclose share, subject to certain minimums and maximums.  The merger
is intended to be accounted for as a pooling of interests, tax-free to
Perclose shareholders, and is expected to close in the fourth quarter of 1999.
    On October 7, 1999 Perclose announced that due to uncertainty surrounding
the outcome of discussions between Abbott and the United States Food & Drug
Administration (FDA) regarding compliance issues in Abbott's Diagnostics
Division, additional disclosures to Perclose stockholders may be necessary
prior to a stockholder vote by Perclose on the acquisition.  As a result, the
Perclose stockholder meeting scheduled for October 8 was adjourned to November
19, 1999.  Following clarification of Abbott's FDA concerns, supplemental
proxy materials, if needed, will be circulated in early November.  Perclose
stockholders who have already voted on the transaction would then have an
opportunity to recast their votes, if desired.  Perclose and Abbott
Laboratories continue to believe that the fundamental premises of the proposed
business combination remain valid.
    Perclose, based in Redwood City, Calif., was founded in 1992 and designs,
manufactures and markets less invasive medical devices that automate the
surgical closure or connection of blood vessels.  The Prostar(R), Techstar(R)
and Heartflo(TM) products use a platform technology that allows hand held
devices to remotely, automatically and precisely deploy needles and sutures
for vascular repair.  The surgical approach that the Prostar(R) and
Techstar(R) products use distinguishes them from the limited number of
competitors in the femoral artery closure device product category.
    The Prostar(R) products, marketed in the U.S. and internationally,
surgically close the arterial access site in the femoral artery following
catheterization procedures such as angioplasty, stenting, atherectomy and
diagnostic angiography.  The Techstar(R) products, also marketed worldwide,
surgically close the arterial access site in the femoral artery following
diagnostic angiography procedures.  These patented, proprietary products offer
superior clinical treatment, more rapid recovery and a lower treatment cost
alternative to the standard method of closing arterial access sites.  The
Heartflo(TM) System, which is designed to automate the surgical connection of
blood vessels during conventional and minimally invasive coronary artery
bypass surgery, is in development. Perclose common stock is traded on the
Nasdaq National Market under the symbol PERC.

    Certain statements in this news release, including statements relating to
the Company's growth, profitability and financial results and the Company's
product development efforts, contain forward looking information.  The
Company's actual results may differ from those anticipated by such forward-
looking statements due to risks and uncertainties, including the risk that new
products may not prove to be safe or effective in clinical trials, risks
associated with receipt and timing of regulatory approvals, including
approvals to conduct clinical trials and to market products commercially,
market acceptance of the Company's products, risk of adverse determinations in
litigation relating to patents and intellectual property rights, risks
associated with manufacturing scale-up and increases in production volumes,
risks associated with product recalls and the management of growth and other
risks, including those set forth in the Company's periodic filings with the
Securities and Exchange Commission.
    For more information on Perclose via fax at no cost, call 800-PRO-INFO,
ticker symbol PERC.


                                  PERCLOSE, INC.
                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                     (In thousands, except per share amounts)
                                   (Unaudited)

                                 Three Months Ended      Six Months Ended
                                    September 30,          September 30,
                                   1999       1998        1999        1998

    Net revenues                 $16,496     $9,123     $32,541     $17,487
    Cost of goods sold             5,513      3,270       9,759       6,460
    Gross profit                  10,983      5,853      22,782      11,027

    Operating expenses:
      Research and development     2,471      1,883       5,430       3,512
      Selling, general
       and administrative          6,191      3,629      12,128       7,262

    Income from operations         2,321        341       5,224         253

    Other income, net                391        453         703         839

    Income before income taxes     2,712        794       5,927       1,092
    Provision for income taxes       271         39         593          54

    Net income                    $2,441       $755      $5,334      $1,038

    Basic earnings
     per common share              $0.22      $0.07       $0.48       $0.10

    Diluted earnings
     per common share              $0.20      $0.07       $0.43       $0.09

    Shares used in computing
     basic earnings per share     11,204     10,817      11,161      10,785

    Shares used in computing
     diluted earnings per share   12,474     11,271      12,370      11,339


                                  PERCLOSE, INC.
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                  (In thousands)
                                   (Unaudited)

                    ASSETS               September 30,  March 31,
    Current assets:                           1999        1999
      Cash, cash equivalents
       and short-term investments           $32,370     $30,197
      Trade receivable
       and other receivables                 11,697       7,762
      Inventories                             3,425       2,549
      Prepaid expenses                          953         689
        Total current assets                 48,445      41,197

      Equipment and leasehold
       improvements, net                      7,073       5,767
      Other assets                            2,580       2,626
        Total assets                        $58,098     $49,590

    LIABILITIES AND STOCKHOLDERS' EQUITY
      Total current liabilities              $5,303      $4,675
      Total long term liabilities               230          --
      Total stockholders' equity             52,565      44,915
        Total liabilities and
         stockholders' equity               $58,098     $49,590

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