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Biotech / Medical : ABAX --- lots of upside -- Ignore unavailable to you. Want to Upgrade?

To: Yo Yo who wrote (459)	9/9/1998 8:51:00 PM
From: burner	Respond to of 492

Company Press Release SOURCE: ABAXIS, Inc. ABAXIS Announces Completion of $5.5 Million Financing SUNNYVALE, Calif., Sept. 9 /PRNewswire/ -- ABAXIS, Inc. (Nasdaq: ABAX - news), a medical products company manufacturing point-of-care blood chemistry systems, announced today that it has entered into a $5.5 million debt agreement. The financing consists of a $3 million for capital equipment facility and a $2.5 million working capital facility. ''With the availability of this financing, we believe we can continue to invest in manufacturing which will allow us to continue to increase our rotor capacity,'' said Donald J. Stewart, CFO for Abaxis. ''We believe the investments we are making in manufacturing will allow us to reduce our cost of goods sold while at the same time increase our capacity to meet customer demand.'' This financing is being provided to Abaxis by Transamerica Technology Finance (''TTF''). TTF provides intermediate term financing and revolving credit solutions for emerging growth and technology-based enterprises. TTF is a division of Transamerica Business Credit, a subsidiary of Transamerica Corporation [NYSE:TA - news], an insurance and financial services leader with over $50 billion in assets. Abaxis has received an initial $600,000 through the equipment financing portion of the facility. An additional $1.4 million will be used to finance the automated manufacturing line that was delivered to Abaxis in June 1998. The remaining $1 million of the capital equipment loan will be used for additional manufacturing and other equipment purchased through June 1999. Under the working capital line of credit, Abaxis may borrow up to a maximum of $2.5 million. Abaxis will draw down approximately $1 million initially and use the remaining $1.5 million as working capital requirements dictate. ''Transamerica Technology Finance is excited to be part of the Abaxis team,'' said Ian Schnider, senior vice president of Transamerica Technology Finance. ''We look forward to a long and mutually beneficial relationship.'' Founded in 1989, Abaxis develops, manufactures and markets portable blood chemistry analyzers for use in any patient-care setting to provide clinicians with rapid blood constituent measurements. The system consists of a compact, 6.9 kilogram, portable analyzer and a series of 8 cm diameter single-use plastic disks, called reagent discs, that contain all the reagents necessary to perform a fixed menu of tests. The system can be operated with minimal training and perform multiple tests on whole blood using either venous or fingerstick samples. The system provides test results in less than 14 minutes with the precision and accuracy equivalent to a clinical laboratory. This press release contains forward-looking statements which are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The future events described in such statements involve risks and uncertainties, including but not limited to, risks and uncertainties related to the market acceptance of the Company's products and the continuing development of its products, risks associated with manufacturing and distributing its products on a commercial scale, general market conditions, competition, risks and uncertainties related to its ability to raise capital in order to fund its operations and other risks detailed form time to time in Abaxis' periodic reports filed with the United States Securities and Exchange Commission.