Revenues for the current quarter were $2,068,000, an increase of 49% over revenues of $1,385,000 for the prior year's quarter. The $683,000 increase in revenues was due to higher revenues from sales of fiber optic devices, lasers, field service and rentals. The gross profit margin in the current quarter was 40% of revenues, compared to 27% for the prior year quarter. The Company had a net loss of $82,000 or $0.00 per share for the current quarter, an 86% reduction from the loss of $585,000 or $0.03 per share for the prior year quarter.

For the nine months ending June 30, 2009, revenues were $5,310,000, a 30% increase over revenues of $4,090,000 in the prior year period, and the Company's net loss for this period was $872,000 or $0.05 per Share, a 30% reduction from the net loss of $1,254,000 or $0.07 per Share for the prior year period.

Commenting on the financial results for the quarter, Marvin P. Loeb, Sc.D., Chairman of Trimedyne, said, "We are pleased with the 49% increase in revenues in the current quarter over the year ago quarter, which is also 27% higher than the revenues of $1,632,000 for the quarter ended March 31, 2009, and our loss in the current quarter was a 76% reduction from the loss of $345,000 for the quarter ended March 31, 2009."

Trimedyne has developed a new side firing optical fiber for use with 80 and 100 watt Holmium Lasers for the treatment of benign prostate hyperplasia or BPH, commonly called an enlarged prostate. We are beginning a limited marketing release of the new fiber under our VaporMAX(R) trademark at a price significantly lower than the prices of side firing fibers marketed by certain of our competitors. Our VaporMAX(R) Fiber is designed to operate at 80 or 100 watts of Holmium Laser energy for one hour or longer. Our competitors' side firing fibers sometimes fail before a BPH patient's treatment has been completed, interrupting the procedure and requiring the hospital to use a second fiber.

BPH is a condition which affects an estimated 50% of men over age 55 and an increasing percentage of men at older ages. Worldwide, an estimated 1.2 million men are presently treated each year in a surgical procedure primarily using radiofrequency (RF) or laser energy to remove excess prostate tissue which is obstructing urine flow. The laser procedure is usually performed on an outpatient basis and reduces the adverse effects of the RF surgical procedure, which typically requires a hospital stay and can entail significant bleeding, impotence and incontinence.

Trimedyne has developed a similar side firing optical fiber which will be marketed throughout the world by Lumenis, Ltd. of Yokneam, Israel, under Lumenis' DuraMAX trademark. Lumenis markets its side firing fibers through Boston Scientific Corporation in the U.S. and Japan. Elsewhere throughout the world, Lumenis markets its side firing fibers through its established sales organization. The DuraMAX(TM) side firing fiber will be used with Lumenis' large, worldwide installed base of 80 and 100 watt Holmium Lasers for the treatment of BPH.

Marketing of the new DuraMAX(TM) Fiber by Lumenis will commence when an audit of our manufacturing process and quality system is completed, which is expected to take several months to complete. We have not been advised when the audit will be commenced.