PLC Systems Reports First Quarter Results

PLC Systems Reports First Quarter Results 


FRANKLIN, Mass., May 3  /PRNewswire-FirstCall/ -- PLC Systems Inc. (AMEX: PLC),
a worldwide leader in cardiac laser technologies, today reported financial
results for the three months ended March 31, 2005.  First quarter total
revenues increased to $1,943,000 compared with $1,909,000 in the first quarter
of 2004.  The net loss for the first quarter of 2005 was $184,000, or $.01 per
share, compared to a net loss of $350,000, or $.01 per share, in the first
quarter of 2004.

"This year is important for PLC as we look to expand our product portfolio,"
stated Mark R. Tauscher, president and CEO of PLC Systems.  "We believe that
our strategic investments into new products and markets will generate future
revenues and diversify our business."

During the first quarter of 2005, PLC shipped nine next-generation CO2 Heart
Lasers (HL2) to United States hospitals through Edwards Lifesciences, PLC's
exclusive U.S. sales and marketing partner.  Four of the nine HL2 shipments
were new lasers and five were redeployed lasers.  PLC ended the first quarter
of 2005 with 174 CO2 Heart Lasers located at heart centers throughout the U.S.,
comprised of 127 HL2 customers and 47 HL1 customers.

During the first quarter of 2005, a total of 489 disposable kits were shipped
worldwide by Edwards and the Company.  Edwards delivered 439 of these kits to
United States hospitals and PLC shipped 50 disposable kits to international
hospitals.  In comparison, a total of 427 disposable kits were delivered
worldwide during the quarter ended March 31, 2004.

Commenting on the first quarter TMR results, Tauscher said that "The current
quarter's increase in disposable kit shipments over the first quarter of 2004
is an encouraging sign.  In fact, based on recent, well-attended Edwards
sponsored educational and training TMR events we believe that there is a
continuing interest in the therapy."

In conjunction with announcing first quarter results, PLC Systems will be
hosting a conference call today, May 3, at 11:00 a.m. Eastern Time.  The call
may be joined via telephone by dialing [phone] at least 5 minutes prior
to the start of the call.  The passcode is: 23187109.  A live Webcast of the
call will be available and accessible at the investor relations section of the
Company's Website at http://www.plcmed.com/.  A recording of the conference
call will be available for the next month on PLC's Website.

About PLC Systems Inc.

PLC Systems is a medical technology company specializing in innovative
technologies for the cardiac and vascular markets.  Currently, the company is
focused on two unique cardiac laser therapies. Headquartered in Franklin,
Mass., PLC pioneered the CO2 Heart Laser System that cardiac surgeons use to
perform CO2 transmyocardial revascularization (TMR) to alleviate symptoms of
severe angina.  In addition, PLC is working with Edwards Lifesciences to
complete the development of and manufacture the Optiwave 980 cardiac laser
ablation system.  The Optiwave 980 is currently being utilized by surgeons to
ablate cardiac tissue in marketing evaluations at leading cardiac institutions
with Edwards gathering valuable feedback from customers.  Edwards' clinical
experience with the Optiwave 980 will help shape the future Optiwave marketing
launch plans.  Additional company information can be found at
http://www.plcmed.com/.

This press release contains "forward-looking" statements. For this purpose, any
statements contained in this press release that relate to prospective events or
developments are deemed to be forward-looking statements. Words such as
"believes," "anticipates," "plans," "expects," "will" and similar expressions
are intended to identify forward-looking statements. Our statements of our
objectives are also forward looking statements. While we may elect to update
forward-looking statements in the future, we specifically disclaim any
obligation to do so, even if our estimates change, and you should not rely on
these forward-looking statements as representing our views as of any date
subsequent to the date of this press release.  Actual results could differ
materially from those indicated by such forward-looking statements as a result
of a variety of important factors, including we may be unable to successfully
develop or manufacture products under our agreements with Edwards; Edwards may
decide not to pursue or continue the sales and marketing activities for these
products; Edwards may be unsuccessful in distributing these products,
operational changes, competitive developments may affect the market for our
products, regulatory approval requirements may affect the market for our
products, we may be unable to convince health care professionals and third
party payers of the medical and economic benefits of the CO2 Heart Lasers and
the Optiwave 980 System, and there can be no assurance that all payers will
reimburse health care providers who perform TMR procedures or that
reimbursement, if provided, will be adequate, and additional risk factors
described in our Report on Form 10-K for the year ended December 31, 2004, and
our other SEC reports.

PLC Systems, PLC Medical Systems, PLC and CO2 Heart Laser are trademarks of PLC
Systems Inc.

Edwards Lifesciences, Edwards, and Optiwave 980 are trademarks of Edwards
Lifesciences.

                             PLC SYSTEMS INC.
                  CONSOLIDATED STATEMENTS OF OPERATIONS
                  (In thousands, except per share data)

                                                    Three Months Ended
                                                         March 31,
                                                    2005           2004
  Revenues:
   Product sales - Edwards                          $1,408         $1,362
   Product sales - other                               150            169
   Service and placement fees - Edwards                311            353
   Service and placement fees - other                   74             25
    Total revenues                                   1,943          1,909

  Cost of revenues:
   Product sales - Edwards                             485            534
   Product sales - other                                67             56
   Service and placement fees - Edwards                138            147
   Service and placement fees - other                   38             29
    Total cost of revenues                             728            766

  Gross profit                                       1,215          1,143

  Operating expenses:
   Selling, general and administrative                 880            990
   Research and development                            571            529
    Total operating expenses                         1,451          1,519

  Loss from operations                               (236)          (376)

  Other income, net                                     52             26

  Net loss                                         $ (184)        $ (350)

  Basic and diluted loss per share                 $(0.01)        $(0.01)

  Average shares outstanding:
   Basic                                            30,068         29,924
   Diluted                                          30,068         29,924


                         CONDENSED BALANCE SHEET

                                                  March 31,   December 31,
                                                    2005           2004
  Cash and short-term investments                   $9,499         $9,678
  Total current assets                              12,988         12,787
  Total assets                                      13,525         13,327
  Total current liabilities                          2,500          2,129
  Shareholders' equity                               6,631          6,829

  Contact: John Jordan
           Director of Investor Relations
           508-541-8800, ext. 145


DATASOURCE: PLC Systems Inc.



CONTACT: John Jordan, Director of Investor Relations of PLC Systems, +1-

508-541-8800, ext. 145



Web site:  http://www.plcmed.com/

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