BioLife Solutions Reports Third Quarter, Nine-Month Results
PRNewswire-FirstCall
BINGHAMTON, N.Y.

BioLife Solutions, Inc. (BULLETIN BOARD: BLFS) announced today results for its third quarter and nine months ended September 30, 2002, the first full quarter of operation since the divesture of the Company's cryosurgery assets on June 25. The Company made significant strides during the quarter in its corporate repositioning program by establishing its identity as BioLife Solutions, Inc.; creating a marketing organization around the Hypothermosol®, CryoStor® and GelStor® product lines; and making progress to establish long-term relationships with new customers and development partners for its biological packaging and customized preservation solutions.

For the 2002 third quarter, revenue was $138,007 compared to $150,199 for the year-earlier period. The decrease was due to slightly lower NIH grant revenue that was drawn down by the Company during the quarter from an award pool to BioLife, offset by slightly higher revenues from corporate consulting contracts. The loss from continuing operations for the third quarter of 2002 was $210,073, or a $0.02 loss per share, compared to income from continuing operations of $6,494, or $0.00 per share. For the 2002 third quarter, the loss from discontinued operations was $92,934, or a $0.01 loss per share, compared to $1.1 million, or a $0.09 loss per share for the third quarter of 2001. The net loss for the third quarter of 2002 was $303,007, or a $0.02 loss per share, versus a net loss of $1.1 million, or a $0.09 loss per share, for the year-earlier period.

President and CEO John Baust, Ph.D., commented, "During the quarter, we established ourselves as a standalone company in the biomedical field; we began laying out plans to the investment community through presentations at investor conferences and communications with online resources and we made many contacts with potential customers and development partners. Looking forward, our near-term milestones include the creation of a sales distribution partnership for our preservation solutions, the expansion of our customer base and patent portfolio and increased exposure in the clinical press."

For the nine months ended September 30, 2002, revenue increased 127 percent to $516,819 from $227,237 for the year-earlier period. The increase was due to higher revenues across the board, including revenue from product sales, NIH grants and corporate research contracts. The loss from continuing operations for the first nine months of 2002 was $371,725, or a $0.03 loss per share, compared to $171,069, or a $0.01 loss per share for the first nine months of 2001. The loss from discontinued operations for the 2002 nine-month period was $1.5 million, or a $0.12 loss per share, compared to $3.4 million, or a $0.27 loss per share for the 2001 nine-month period. Net income for the first nine months of 2002 was $506,560, or $0.04 per share, compared to a net loss of $3.6 million, or a $0.29 loss per share. The 2002 nine-month results include the gain on disposal of cryosurgical assets, net of assets sold at cost, of $2.4 million, or $0.20 per share.

Research and development expenses for the 2002 third quarter and first nine months were $209,434 and $441,684, respectively, versus $115,299 and $254,926, respectively, for the year-earlier periods. The increase in research and development expenses was due primarily to higher expenses relating to academic presentations made by the Company's engineers at scientific conferences during the quarter and an overall higher level of product development activity for the nine months.

Sales and marketing expense for the third quarter and nine months of 2002 was $4,126 and $4,146, respectively, compared to $715 and $29,561, respectively, for the year-earlier periods. The increase for the third quarter was the direct result of the Company's presence at a tradeshow during the period. The decrease for the first nine months was principally due to a shift in the allocation of sales and marketing personnel related expenditure to product development.

General and administrative expense for the third quarter and nine months of 2002 was $134,520 and $417,068, respectively, compared to $25,853 and $110,599, respectively, for the year-earlier periods. The increase in general and administrative expense was due to the shift in the burden of general and administrative expense to the Company's continuing operations from discontinued operations. As a result of this shift, the Company experienced higher salary, travel, legal and accounting expense.

Subsequent to the end of the quarter, BioLife announced the addition of a $158,000 grant by the NIH to help fund research into the development of additional applications for BioLife's product technologies for cell and gene therapies and tissue engineering.

About BioLife Solutions, Inc.

BioLife Solutions has pioneered the next generation of preservation solutions designed to maintain the viability and health of cellular matter and tissues during freezing, transportation and storage. Based on the Company's proprietary bio-packaging technology and a patented understanding of the mechanism of cellular damage and death, these products enable the biotechnology and medical community to address a growing problem that exists today. The expanding practice of cell and gene therapy has created a need for products that ensure the biological viability of mammalian cell and tissue material during transportation and storage. The HypoThermosol® and CryoStor™ products that the Company is selling today are a significant step forward in meeting these needs.

For further information please contact: investors, Jill Bertotti, jill@allencaron.com, or media, Len Hall, len@allencaron.com, both of Allen & Caron Inc, +1-949-474-4300, for BioLife Solutions, Inc.

This news release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include any statements that relate to the intent, belief, plans or expectations of the Company or its management, or that are not a statement of historical fact. Any forward-looking statements in this news release are based on current expectations and beliefs and are subject to numerous risks and uncertainties that could cause actual results to differ materially. Some of the specific factors that could cause BioLife Solutions' actual results to differ materially are discussed in the Company's recent filings with the Securities and Exchange Commission. BioLife Solutions disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.

                         BIOLIFE SOLUTIONS, INC.
                         STATEMENTS OF OPERATIONS
                               (unaudited)

                           Three months ended         Nine months ended
                              September 30,             September 30,
                           2002          2001         2002          2001

  Revenue:
     Product sales        $1,975           $--      $20,527           $--
     Grants              106,032       125,199      385,572       202,237
     Services and other   30,000        25,000      110,720        25,000
        Total revenue    138,007       150,199      516,819       227,237

  Cost of product sales       --         1,089       25,646         2,455
  Gross profit           138,007       149,110      491,173       224,782

  Expenses:
     Research and
      development        209,434       115,299      441,684       254,926
     Sales and
      marketing            4,126           715        4,146        29,561
     General and
      administrative     134,520        25,853      417,068       110,599
  Total expenses         348,080       141,867      862,898       395,086

  Operating income
   (loss)               (210,073)        7,243     (371,725)     (170,304)
  Interest expense, net       --           749           --           765
  Income (loss) from
   continuing
   operations           (210,073)        6,494     (371,725)     (171,069)

  Discontinued operations:
     Loss from
      discontinued
      operations         (92,934)   (1,140,775)  (1,547,824)   (3,409,153)
     Gain on disposal
      of cryosurgical
      assets, net             --            --    2,426,109            --
  Net income (loss)    $(303,007)  $(1,134,281)    $506,560   $(3,580,222)

  Basic earnings (loss)
   per share:
      Loss from
       continuing
       operations         $(0.02)          $--       $(0.03)       $(0.01)
      Loss from
       operation of
       cryosurgical
       assets              (0.01)        (0.09)       (0.12)        (0.27)
      Gain on disposal
       of cryosurgical
       assets, net            --            --         0.20            --
  Total                   $(0.02)       $(0.09)       $0.04        $(0.29)

  Diluted earnings
   per share from
   continuing operations                   $--

  Weighted average
   number of common
   shares outstanding:
     Basic            12,413,209    12,413,209   12,413,209    12,413,209
     Diluted                        17,213,209

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SOURCE: BioLife Solutions, Inc.

CONTACT: investors, Jill Bertotti, jill@allencaron.com, or media,
Len Hall, len@allencaron.com, both of Allen & Caron Inc, +1-949-474-4300, for
BioLife Solutions, Inc.


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