Net Loss Reduced Seventy Six Percent WATERBURY, Conn., Aug. 17 /PRNewswire-FirstCall/ -- DiaSys Corporation (OTC:DYXC) (BULLETIN BOARD: DYXC) , a global healthcare products company, today announced results for the fourth quarter of the fiscal year ending June 30, 2006. The Company reported a net loss for the three month period ended June 30, 2006 of $222,565 compared to a net loss of $952,550 for fourth quarter ended June 30, 2005 a decrease of $729,985 or 76.63%. The Company's net sales for the three month period ended June 30, 2006 were $500,977 from $779,949 for the three month period ended June 30, 2005, a decrease of $278,972 or 35.77%. Gross profit for the fourth quarter ended June 30, 2006 was $278,558 or 55.60% compared to $327,151 or 41.95% for the comparable period in 2005. The net loss per share for the period in 2006 was $ .01 per share based on 21,145,758 weighted average common shares outstanding, compared to a net loss per share in the comparable period in 2005 of $.05 per share based on 18,201,922 weighted average common shares outstanding. Gregory Witchel, Chief Executive Officer of DiaSys Corporation stated, "Our results for the quarter show a dramatic reduction in the net loss and an increase in our gross margin, as a result of changes being implemented at the Company. This month we received product registrations in Mexico, Peru and Chile, three important Latin American markets and expect to begin deliveries of product in commercial quantities to those territories. DiaSys Corporation is developing new products which we are planning to introduce in 2007." The Company will report fiscal year end results for the year ended June 30, 2006, in its annual report, on Form 10KSB. DiaSys Corporation designs, develops, manufactures and distributes proprietary medical laboratory equipment, consumables and infectious disease test-kits to healthcare & veterinary laboratories worldwide. Headquartered in Waterbury, Connecticut USA, the Company operates in Europe through its wholly owned subsidiary based in Wokingham, England and through distributors in South America. DiaSys, Parasep and Urisep are registered trademarks of DiaSys Corporation. This press release contains forward-looking statements within the meaning of, and made pursuant to, the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or events, or timing of events, relating to the Company to materially differ from those expressed or implied by such forward looking statements. DiaSys refers interested parties to its most recent Annual Report on Form 10-KSB and other SEC filings for a complete description of, and discussions about, the Company. Comparative figures are as follows: DIASYS CORPORATION & SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended June 30, June 30, 2006 2005 (unaudited) (unaudited) NET SALES $ 500,977 $ 779,949 COST OF GOODS SOLD 222,419 452,798 GROSS PROFIT 278,558 327,151 OPERATING EXPENSES Selling 73,398 287,865 General & administrative 379,494 887,048 Research & development 41,308 92,948 494,201 1,267,861 LOSS FROM OPERATIONS (215,643) (940,710) OTHER INCOME: Interest income - (15) Interest expense 6,922 8,726 LOSS BEFORE INCOME TAXES (222,565) (949,421) INCOME TAXES (0) (3,129) NET LOSS $ (222,565) $ (952,550) WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 21,145,758 18,201,922 BASIC AND DILUTED LOSS PER COMMON SHARE $ (0.01) $ (0.05) DATASOURCE: DiaSys Corporation CONTACT: Gregory Witchel, Chief Executive Officer, +1-203-755-5083 Web site: http://www.diasys.com/

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