PLC Systems Reports a 72 Percent Increase in Third Quarter Domestic Disposable Kit Shipments Over a Year Ago

PLC Systems Reports a 72 Percent Increase in Third Quarter Domestic Disposable
Kit Shipments Over a Year Ago
-- Company Posts Sixth Consecutive Profitable Quarter -- 


FRANKLIN, Mass., Oct. 29  /PRNewswire-FirstCall/ -- PLC Systems Inc. , the
leader in carbon dioxide (CO2) TransMyocardial Revascularization (TMR) laser
technology used to treat patients with severe angina, or heart pain, today
reported positive financial results for the three and nine months ended
September 30, 2003.  PLC's third quarter results represent the sixth consecutive
profitable quarter for the Company.

"We are very pleased with our third quarter results," stated Mark R. Tauscher,
president and chief executive officer of PLC Systems.  "During the past several
quarters we have witnessed a fundamental change in our penetration of the TMR
market, which has led to a significant increase in customer awareness and growth
in disposable kit shipments.  Edwards Lifesciences' sales and marketing strength
combined with PLC's clinical and technology expertise provides a formidable
presence within the angina relief market.  In fact, based on both the third
quarter and year-to-date reported end user revenue, we believe the CO2 TMR team
-- Edwards and PLC Medical -- has established the leadership position within the
TMR market."

The third quarter total revenue of $2,254,000 was up 13 percent compared to
$1,995,000 in the third quarter of 2002.  Net income for the third quarter ended
September 30, 2003 was $225,000 compared to net income of $219,000 for the third
quarter ended September 30, 2002.

Total revenues for the nine months ended September 30, 2003 were $5,999,000
compared to total revenues of $6,594,000 for the nine months ended September 30,
2002.  Net income for the nine months ended September 30, 2003 was $443,000
compared to net income of $95,000 for the nine months ended September 30, 2002.

A leading indicator for the adoption rate of the CO2 TMR therapy is disposable
kit shipments to hospitals.  During the third quarter of 2003, a total of 503
disposable kits were shipped worldwide, which is an increase of 55 percent from
worldwide kit shipments in the third quarter of 2002.  Edwards Lifesciences
delivered 488 disposable kits to United States hospitals and PLC shipped an
additional 15 disposable kits to International hospitals.  The 488 domestic kits
delivered by Edwards Lifesciences represents a growth of 72 percent over the
comparable third quarter a year ago.  A total of 325 disposable kits were
delivered worldwide during the quarter ended September 30, 2002.

Tauscher continued, "With respect to disposable kit shipments, we are extremely
pleased to see the positive trend from the second quarter continue through the
third quarter.  This continued increased adoption is very encouraging because
the third quarter is one of the slower quarters for cardiac procedures due to
the summer months."

During the third quarter of 2003, 10 next-generation CO2 Heart Lasers (HL2) were
shipped to United States hospitals through Edwards Lifesciences Corporation
(NYSE:EW), PLC's exclusive U.S. sales and marketing partner.

PLC ended the third quarter of 2003 with 152 CO2 Heart Lasers located at heart
centers throughout the U.S., comprised of 99 HL2 customers and 53 HL1 customers.
 As of September 30, 2003, PLC's U.S. laser base (HL1 and HL2) had increased by
24 percent during the preceding twelve months.  More significantly, PLC's U.S.
HL2 installed base grew to 99 lasers as of September 30, 2003, up 50 percent
from September 30, 2002.

Tauscher concluded, "PLC's six consecutive profitable quarters is a testament to
the momentum building around CO2 TMR.  I believe CO2 TMR's increased visibility
and awareness will continue to move the therapy to a standard of care for angina
patients."

In conjunction with announcing its third quarter results, PLC Systems will be
hosting a conference call today, October 29, at 11:00 a.m. Eastern Time. The
call may be joined via telephone by dialing [phone] at least five minutes
prior to the start of the call.  The passcode is: 40382300.  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.

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

                             Three Months Ended       Nine Months Ended
                               September 30,              September 30,
                            2003          2002         2003          2002
  Revenues:
    Product sales         $1,899        $1,641       $4,883        $5,547
    Placement and
     service fees            355           354        1,116         1,047
       Total revenues      2,254         1,995        5,999         6,594

  Cost of revenues:
    Product sales            873           645        1,897         2,692
    Placement and
     service fees            134           120          375           397
       Total cost
        of revenues        1,007           765        2,272         3,089

  Gross profit             1,247         1,230        3,727         3,505

  Operating expenses:
     Selling, general
      and administrative     747           796        2,578         2,790
     Research and
      development            283           230          744           665
     Total operating
      expenses             1,030         1,026        3,322         3,455

  Income from operations     217           204          405            50

  Other income, net            8            15           38            45

  Net income                $225          $219         $443           $95

  Basic and diluted
   earnings per share     $ 0.01        $ 0.01       $ 0.01        $ 0.00

  Average shares outstanding:
  Basic                   29,836        29,738       29,815        29,676
  Diluted                 30,531        29,755       30,120        29,700


                           CONDENSED BALANCE SHEET

                                                September 30,   December 31,
                                                      2003          2002
  Cash and cash equivalents                         $6,216         $5,932
  Total current assets                               9,472          9,412
  Total assets                                      10,054         10,328
  Total current liabilities                          2,525          2,942
  Shareholders' equity                               7,197          6,725

  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

Inc., [phone], ext. 145 



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

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