MGC Diagnostics Corporation Announces Special Cash Dividend and Extension of Stock Repurchase Program

 MGC Diagnostics Corporation Announces Special Cash Dividend and Extension of
                           Stock Repurchase Program

PR Newswire

SAINT PAUL, Minn., March 28, 2013

SAINT PAUL, Minn., March 28, 2013 /PRNewswire/ -- MGC Diagnostics Corporation
(NASDAQ: MGCD), a global medical technology leader, announced that its Board
of Directors has approved a special, one-time cash dividend of $0.45 per share
on its outstanding common stock, payable on April 26, 2013 to shareholders of
record as of April 12, 2013. The Company also announced an extension of its
current Stock Repurchase Program to October 31, 2013. The Stock Repurchase
Program would otherwise expire on July 31, 2013. This program currently has
$2.735 million remaining.

(Logo: http://photos.prnewswire.com/prnh/20120821/LA60189LOGO)

Mark W. Sheffert, Chairman of the Board of Directors of MGC Diagnostics
Corporation, stated "The Board of MGC Diagnostics has assessed and will
continue to periodically assess the Company's capital resources. If the Board
of Directors determines that the Company's capital resources exceed the amount
necessary to meet its working capital and liquidity needs, as well as to
retain a reasonable cushion for contingencies and strategic opportunities,
then the Company will consider various options for increasing shareholder
value, including, but not limited to, purchasing its own shares in the open
market and in privately negotiated transactions and paying cash dividends."

"In making the current determination, the MGC Diagnostics Board carefully
considered the Company's short- and long-term operating and capital resource
needs. While we expect the Company will continue to pursue opportunistic
product line or business acquisitions, given (i) our cash and cash equivalents
position of $8.9 million and our positive net working capital position of
approximately $13.2 million, both as of January 31, 2013 and (ii) the Board's
confidence in management's strategic plan for growth and profitability, the
Board determined that it would be able to pay a special one-time cash dividend
of $0.45  per share or approximately $1.8 million and still retain adequate
funds to meet our working capital and liquidity needs and to pursue strategic
opportunities."

Mr. Sheffert concluded, "This is a special one-time cash dividend and MGC
Diagnostics cannot guarantee and makes no prediction about future dividends.
Any future dividends will be dependent on the Company's future profitability,
cash flow and short- and long-term capital needs."

About MGC Diagnostics

MGC Diagnostics Corporation, (formerly Angeion Corporation) through its
subsidiary Medical Graphics Corporation, is a global medical technology
company dedicated to cardiorespiratory health solutions. MGC Diagnostics
develops, manufactures and markets non-invasive diagnostic systems. This
portfolio of products provides solutions for disease detection, integrated
care, and wellness across the spectrum of cardiorespiratory healthcare. The
Company's products are sold internationally through distributors and in the
United States through a direct sales force targeting heart and lung
specialists located in hospitals, university-based medical centers, medical
clinics, physicians' offices, pharmaceutical companies, medical device
manufacturers, and clinical research organizations (CROs). For more
information about MGC Diagnostics, visit www.mgcdiagnostics.com.

Cautionary Statement Regarding Forward Looking Statements

From time to time, in reports filed with the Securities and Exchange
Commission, in press releases, and in other communications to shareholders or
the investing public, MGC Diagnostics Corporation may make forward-looking
statements concerning possible or anticipated future financial performance,
business activities or plans that include the words "believes," "expects,"
"anticipates," "intends" or similar expressions. For these forward-looking
statements, the Company claims the protection of the safe harbor for
forward-looking statements contained in federal securities laws. These
forward-looking statements are subject to a number of factors, risks and
uncertainties, including those disclosed in our periodic filings with the SEC,
that could cause actual performance, activities or plans after the date the
statements are made to differ significantly from those indicated in the
forward-looking statements. For a list of these factors, see the sections
entitled "Risk Factors" and "Cautionary Note Regarding Forward Looking
Statements," in the Company's Form 10-K for the year ended October 31, 2012,
and any updates in subsequent filings on Form 10-Q or Form 8-K under the
Securities Exchange Act of 1934.

Contact: Gregg O. Lehman, Ph.D.      Joe Dorame, Robert Blum, Joe Diaz
         MGC Diagnostics Corporation Lytham Partners, LLC
         Chief Executive Officer     (602) 889-9700
         (651) 484-4874              mgcd@lythampartners.com

SOURCE MGC Diagnostics Corporation

Website: http://www.mgcdiagnostics.com
 
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