Patient Safety Technologies, Inc. Hires Trinity River Advisors, LLC as Its Chief Restructuring Officer and Provides 3rd Quarter

  
    
  
  
    
      Patient Safety Technologies, Inc. (AMEX:PST) provides further financial 
      information.
    
    
      The Company anticipates that third-quarter revenue will rise to $122,000 
      from $30,000 a year earlier and net losses will decrease to $2.0 
      million, or 31 cents per diluted share, from $2.2 million, or 39 cents 
      per share, in 2005.
    
    
      Revenue from the Company's car wash services segment of $104,000 
      accounted for 85 percent of the Company�s 
      revenue while revenue generated from the medical products segment, which 
      marked the first quarter that the Company recognized revenue in its 
      medical products segment, of $18,000 accounted for the remaining 15 
      percent.
    
    
      Included in the Company�s estimated loss of 
      $2.0 million is approximately $675,000 in non-cash charges related to 
      depreciation, amortization, debt discount and stock-based compensation 
      expenses. While the Company believes these estimates have been prepared 
      in accordance with generally accepted accounting principles, actual 
      results may change upon final review of the Company�s 
      financial results by its independent accountants.
    
    
      The Company continues to have limited to no funds and operates through 
      loan agreements and revolving lines of credit.
    
    
      PST also announced today that its Board has authorized management to 
      initiate specific steps of a new restructuring plan. The Company, in 
      cooperation and support from several of PST�s 
      largest shareholder groups, including Bodnar Capital Management, LLC (�BCM�), 
      has taken steps in which it believes will be extremely positive for its 
      shareholders, including:
    
    
      
        Securing an estimated $1 Million bridge loan with BCM and other 
        strategic investors
      
      
        Restructuring a majority of the Company�s 
        short-term debt
      
      
        Engaged Trinity River Advisors, an outside, independent advisor and 
        Chief Restructuring Officer (�CRO�) 
        to assist PST with its restructuring plan (www.trinityriveradvisors.com)
      
      
        Engaged Peterson & Co, LLP, the Company�s 
        new independent auditor
      
    
    
      The Board has determined at this time, after reviewing purchase offers 
      for SurgiCount Medical, the Company�s primary 
      subsidiary, and discussing with the new CROs, to evaluate ALL 
      options or alternatives available regarding SurgiCount in order to 
      optimize value for PST shareholders.
    
    
      Further, PST is no longer in default to any of its creditors regarding 
      the Company�s loan agreements or its loan 
      covenants. The Company has reached newly executed or tentative 
      agreements with its creditors to restructure its short-term debt that 
      will greatly affect the working capital deficiencies of the Company.
    
    
      �I anticipate that this debt restructuring 
      will dramatically strengthen our balance sheet, ultimately moving 
      approximately $3.5 million of short-term debt that was included in the 
      Company�s June 30, 2006 $5.8 million working 
      capital deficit to long-term debt,� said 
      Milton �Todd� Ault 
      III, Chairman and CEO of PST.
    
    
      Additionally, the Company announces it has engaged Peterson & Co, LLP as 
      the Company�s new independent auditors, who 
      will begin work immediately to assist the Company with its next Form 
      10-Q filing and all future filings. The Company hopes to file its 
      September 30, 2006 10-Q on time, but will keep investors apprised of the 
      filing given the Company�s engagement of new 
      auditors.
    
    
      The Company also announces it has appealed the American Stock Exchange's 
      (�Amex�) delisting 
      determination and will provide Amex with its restructuring plan, 
      including the above-mentioned bridge loan, restructured debt and plans 
      to bring new capital into the Company, which the Company believes will 
      bring it back into compliance with Amex�s 
      continued listing standards.
    
    
      About Patient Safety Technologies, Inc.
    
    
      Patient Safety Technologies, Inc. (PST) is a holding company that owns 
      assets in various businesses. Its wholly-owned subsidiary, SurgiCount 
      Medical, Inc., is a developer and manufacturer of patient safety 
      products and services. For more information on Patient Safety 
      Technologies, Inc., please contact the company directly at 310-895-7750, 
      or by email at [e-mail] 
      or www.patientsafetytechnologies.com.
    
    
      About SurgiCount and the Safety-Sponge� 
      System
    
    
      SurgiCount Medical's Safety-Sponge System works much like a grocery 
      store check-out system. Every surgical sponge and towel is pre-labeled 
      by the manufacturer with an individual and unique bar coded label, and a 
      scanning counter is used to read and record the labels. No change is 
      required in a hospital's established counting procedures: sponges are 
      counted and recorded by the system at the beginning of the procedure and 
      again as they are removed from the patient. For more information, visit www.surgicountmedical.com.
    
    
      Forward-Looking Statements
    
    
      This press release contains certain forward-looking statements. These 
      forward-looking statements can generally be identified as such because 
      the context of the statement will include words such as Patient Safety 
      Technologies plans, expects, should, believes, anticipates or words of 
      similar import. Stockholders, potential investors and other readers are 
      cautioned that these forward-looking statements are predictions based 
      only on current information and expectations that are inherently subject 
      to risks and uncertainties that could cause future events or results to 
      differ materially from those set forth or implied by the forward-looking 
      statements. Certain of those risks and uncertainties are discussed in 
      our filings with the Securities and Exchange Commission, including our 
      annual report on Form 10-K and quarterly reports on Form 10-Q. These 
      forward-looking statements are only made as of the date of this press 
      release and Patient Safety Technologies does not undertake any 
      obligation to publicly update such forward-looking statements to reflect 
      subsequent events or circumstances.
    
  
Patient Safety Technologies, Inc. (AMEX:PST) provides further
financial information.

   The Company anticipates that third-quarter revenue will rise to
$122,000 from $30,000 a year earlier and net losses will decrease to
$2.0 million, or 31 cents per diluted share, from $2.2 million, or 39
cents per share, in 2005.

   Revenue from the Company's car wash services segment of $104,000
accounted for 85 percent of the Company's revenue while revenue
generated from the medical products segment, which marked the first
quarter that the Company recognized revenue in its medical products
segment, of $18,000 accounted for the remaining 15 percent.

   Included in the Company's estimated loss of $2.0 million is
approximately $675,000 in non-cash charges related to depreciation,
amortization, debt discount and stock-based compensation expenses.
While the Company believes these estimates have been prepared in
accordance with generally accepted accounting principles, actual
results may change upon final review of the Company's financial
results by its independent accountants.

   The Company continues to have limited to no funds and operates
through loan agreements and revolving lines of credit.

   PST also announced today that its Board has authorized management
to initiate specific steps of a new restructuring plan. The Company,
in cooperation and support from several of PST's largest shareholder
groups, including Bodnar Capital Management, LLC ("BCM"), has taken
steps in which it believes will be extremely positive for its
shareholders, including:

   --  Securing an estimated $1 Million bridge loan with BCM and
        other strategic investors

   --  Restructuring a majority of the Company's short-term debt

   --  Engaged Trinity River Advisors, an outside, independent
        advisor and Chief Restructuring Officer ("CRO") to assist PST
        with its restructuring plan (www.trinityriveradvisors.com)

   --  Engaged Peterson & Co, LLP, the Company's new independent
        auditor

   The Board has determined at this time, after reviewing purchase
offers for SurgiCount Medical, the Company's primary subsidiary, and
discussing with the new CROs, to evaluate ALL options or alternatives
available regarding SurgiCount in order to optimize value for PST
shareholders.

   Further, PST is no longer in default to any of its creditors
regarding the Company's loan agreements or its loan covenants. The
Company has reached newly executed or tentative agreements with its
creditors to restructure its short-term debt that will greatly affect
the working capital deficiencies of the Company.

   "I anticipate that this debt restructuring will dramatically
strengthen our balance sheet, ultimately moving approximately $3.5
million of short-term debt that was included in the Company's June 30,
2006 $5.8 million working capital deficit to long-term debt," said
Milton "Todd" Ault III, Chairman and CEO of PST.

   Additionally, the Company announces it has engaged Peterson & Co,
LLP as the Company's new independent auditors, who will begin work
immediately to assist the Company with its next Form 10-Q filing and
all future filings. The Company hopes to file its September 30, 2006
10-Q on time, but will keep investors apprised of the filing given the
Company's engagement of new auditors.

   The Company also announces it has appealed the American Stock
Exchange's ("Amex") delisting determination and will provide Amex with
its restructuring plan, including the above-mentioned bridge loan,
restructured debt and plans to bring new capital into the Company,
which the Company believes will bring it back into compliance with
Amex's continued listing standards.

   About Patient Safety Technologies, Inc.

   Patient Safety Technologies, Inc. (PST) is a holding company that
owns assets in various businesses. Its wholly-owned subsidiary,
SurgiCount Medical, Inc., is a developer and manufacturer of patient
safety products and services. For more information on Patient Safety
Technologies, Inc., please contact the company directly at
310-895-7750, or by email at [e-mail] or
www.patientsafetytechnologies.com.

   About SurgiCount and the Safety-Sponge(TM) System

   SurgiCount Medical's Safety-Sponge System works much like a
grocery store check-out system. Every surgical sponge and towel is
pre-labeled by the manufacturer with an individual and unique bar
coded label, and a scanning counter is used to read and record the
labels. No change is required in a hospital's established counting
procedures: sponges are counted and recorded by the system at the
beginning of the procedure and again as they are removed from the
patient. For more information, visit www.surgicountmedical.com.

   Forward-Looking Statements

   This press release contains certain forward-looking statements.
These forward-looking statements can generally be identified as such
because the context of the statement will include words such as
Patient Safety Technologies plans, expects, should, believes,
anticipates or words of similar import. Stockholders, potential
investors and other readers are cautioned that these forward-looking
statements are predictions based only on current information and
expectations that are inherently subject to risks and uncertainties
that could cause future events or results to differ materially from
those set forth or implied by the forward-looking statements. Certain
of those risks and uncertainties are discussed in our filings with the
Securities and Exchange Commission, including our annual report on
Form 10-K and quarterly reports on Form 10-Q. These forward-looking
statements are only made as of the date of this press release and
Patient Safety Technologies does not undertake any obligation to
publicly update such forward-looking statements to reflect subsequent
events or circumstances.