Vision-Sciences Announces Revenue of $4.0 Million for Second Quarter and $7.6 Million for First Half of Fiscal 2014

Vision-Sciences Announces Revenue of $4.0 Million for Second Quarter and $7.6
Million for First Half of Fiscal 2014

Year-Over-Year Growth of 6% for the Quarter and 7% for the First Half

ORANGEBURG, N.Y., Nov. 11, 2013 (GLOBE NEWSWIRE) -- Vision-Sciences, Inc.
(Nasdaq:VSCI), a leading provider of unique flexible endoscopic products
utilizing its proprietary sterile disposable EndoSheath® technology, today
announced financial results for its second quarter and first half of fiscal
year 2014, ended September 30, 2013.

Second Quarter Fiscal Year 2014 Highlights

  *Net sales increased 6% to $4.0 million compared with $3.7 million in the
    second quarter of fiscal 2013;
  *On a sequential basis, net sales increased 9% compared with $3.7 million
    in the first quarter of fiscal 2014;
  *Operating loss improved 51% to $1.3 million compared to $2.6 million in
    the same quarter last year; and
  *Net loss improved by 69% to $1.3 million, or ($0.03) per basic and diluted
    share, compared to $4.3 million, or ($0.09) per basic and diluted share,
    in the same quarter last year.

First Half of Fiscal Year 2014 Highlights

  *Net sales increased 7% to $7.6 million compared with $7.1 million in the
    first half of fiscal 2013;
  *Operating loss improved by 25% to $3.7 million compared to $4.9 million in
    the same period last year; and
  *Net loss improved by 46% to $3.8 million, or ($0.08) per basic and diluted
    share, compared to $6.9 million, or ($0.15) per basic and diluted share,
    in the same period last year.

"I am pleased to note another solid quarter of consistent sales growth for
Vision-Sciences," commented Howard Zauberman, Interim Chief Executive Officer
of Vision-Sciences, Inc. "We are encouraged by the initial positive impact of
our strategic repositioning of the Company.

"Particularly noteworthy is that the efficacy profile of our EndoSheath
technology in infection control and safe utilization in both clinical and
remote settings continues to expand with a number of positive publications and
presentations supporting our long-standing position of an always ready, always
sterile scope."

"These highly positive study outcomes add to the growing body of data on the
microbiology validation of our EndoSheath technology, and further support the
advantages of using our sterile, disposable technology over conventional,
difficult-to-clean and disinfect endoscopes. We will continue to pursue
opportunities to introduce or evaluate our EndoSheath technology in a variety
of different venues," concluded Mr. Zauberman.

Results of Operations

Second Quarter Fiscal Year 2014 versus Second Quarter Fiscal Year 2013

Net sales in the second quarter of fiscal 2014 increased 6% to $4.0 million
from $3.7 million in the same period a year ago, primarily attributable to
higher sales to Stryker of our endoscopes and EndoSheath technology in the
urology market ($0.8 million, or 204%). Sequentially, net sales in the second
quarter increased 9% from $3.7 million as reported during the first quarter of
fiscal 2014.

Net sales detail (in thousands, except for percentages) for the three-month
periods were as follows:

                                     Three Months Ended      
                                      September 30,
Market/Category                       2013        2012        %
                                     (unaudited) (unaudited) 
Urology                               $1,681    $888      89%
ENT                                   403        587        -31%
TNE                                   355        334        6%
Pulmonology                           395        162        144%
Spine                                 --        181        -100%
Repairs, peripherals, and accessories 565        572        -1%
Total net medical sales               3,399      2,724      25%
Total net industrial sales            569        1,015      -44%
Net sales                             $3,968    $3,739    6%

Gross profit was $1.2 million in the second quarter of fiscal 2014, an
increase of $0.1 million, or 12%, over the same period last year. Gross margin
for the period increased 150 basis points to 30.1% from 28.6% in the second
quarter of fiscal 2013. The year-over-year improvement in our gross margin was
primarily attributable to favorable manufacturing absorption from higher
production of our urology endoscopes and EndoSheath technology (gross margin
impact of 1.8%).

Selling, general and administrative ("SG&A") expenses were $2.1 million in the
second quarter of fiscal 2014, a decrease of $1.1 million, or 35%, over the
same period last year. Lower stock-based compensation expense of $0.8 million
in the second quarter of fiscal 2014 was the primary driver for the
year-over-year decrease. The fiscal 2014 period benefited from the reversal of
stock-based compensation expense for our former President and Chief Executive
Officer ($0.3 million). As a percentage of net sales, SG&A decreased to 52%
from 85% reported in the same period last year.

Research and development ("R&D") expenses were $0.4 million in the second
quarter of fiscal 2014, a decrease of $0.1 million, or 19%, over the same
period last year. The decreases were primarily attributable to lower product
development costs associated with our next generation digital processing unit,
the DPU-7000, which we launched in March 2013 and introduced at COSM in April
2013. As we continue our development of an innovative product pipeline we
expect our R&D expenses to increase over the next several quarters. As a
percentage of net sales, R&D decreased to 11% from 14% reported during the
same period last year.

The Company's operating loss improved 51% to $1.3 million during the second
quarter of fiscal 2014 driven by lower operating expenses of $1.2 million.

First Half of Fiscal 2014 versus First Half of Fiscal 2013

Net sales for the first half of fiscal 2014 increased 7% to $7.6 million from
$7.1 million reported during the first half of fiscal 2013. The year-over-year
growth was primarily attributable to higher sales to Stryker of our endoscopes
and EndoSheath technology in the urology market ($1.3 million, or 133%).

Net sales detail (in thousands, except for percentages) for the first half of
fiscal years 2014 and 2013 were as follows:

                                      Six Months Ended        
                                       September 30,
Market/Category                        2013        2012        %
                                      (unaudited) (unaudited) 
Urology                               $3,542    $1,944    82%
ENT                                    743        1,019      -27%
TNE                                    558        510        9%
Pulmonology                            481        287        68%
Spine                                  --        440        -100%
Repairs, peripherals, and accessories 1,104      1,020      8%
Total net medical sales                6,428      5,220      23%
Total net industrial sales             1,192      1,915      -38%
Net sales                              $7,620    $7,135    7%

Gross profit for the first half of fiscal 2014 increased 15% to $2.3 million
compared to $2.0 million for the first half of fiscal 2013. Gross margin for
the period increased approximately 210 basis points to 29.9% from 27.8% in the
first half of fiscal 2013, primarily attributable to favorable manufacturing
absorption from higher production of our urology endoscopes and EndoSheath
technology (gross margin impact of 1.1%).

SG&A expenses were $5.1 million for the first half of fiscal 2014, a decrease
of $0.8 million, or 13%, compared to the first half of fiscal 2013. The
decrease was primarily attributable to lower stock-based compensation expense
($0.6 million). The first half of fiscal 2014 benefited from the reversal of
stock-based compensation expense for our former President and Chief Executive
Officer ($0.3 million). As a percentage of net sales, SG&A decreased to 67%
from 83% as reported in the first half of fiscal 2013.

R&D expenses were $0.8 million for the first half of fiscal 2014, a decrease
of $0.2 million, or 16%, compared to the first half of fiscal 2013. The
decreases were primarily attributable to lower product development costs
associated with the DPU-7000. As a percentage of net sales, R&D decreased to
11% from 14% as reported in the first half of fiscal 2013.

The Company's operating loss improved 25% to $3.7 million in the first half of
fiscal 2014 from $4.9 million in the first half of fiscal 2013, primarily
attributable to a $1.0 million decline in operating expenses, period to
period.

At September 30, 2013, the Company had cash and cash equivalents of $0.5
million and working capital of $6.6 million, as compared to cash and cash
equivalents of $0.8 million and working capital of $7.0 million at March 31,
2013. As of September 30, 2013, the Company had $3.5 million of capital
available under a revolving convertible promissory note with Lewis C. Pell,
the Company's Chairman.

Conference Call

Howard Zauberman, Interim Chief Executive Officer, and Keith Darragh, VP,
Finance, Principal Financial Officer, and Principal Accounting Officer, will
host a conference call to discuss the second quarter and first half of fiscal
2014 financial results at 8:30 a.m. EST, on Tuesday, November 12, 2013.

Conference dial-in:    (877) 303-1595
International dial-in: (970) 315-0449
Conference ID:         90418252
Webcast:               http://ir.visionsciences.com/

An audio replay of the conference call will be available from 11:30 a.m. EST
on Tuesday, November 12, 2013, through 11:30 p.m. EST on Tuesday, November 19,
2013 by dialing (855) 859-2056 from the U.S. or (404) 537-3406 from abroad.
The audio webcast will also be available in the investor section of the
Company's website, www.visionsciences.com.

About Vision-Sciences, Inc.

Vision-Sciences, Inc. designs, develops, manufactures and markets products for
flexible endoscopy. The Company's unique product lines feature a streamlined
visualization system and proprietary sterile disposable microbial barrier,
known as EndoSheath^® technology, providing users with efficient and cost
effective endoscope turnover while enhancing patient safety. Information
about Vision-Sciences' products is available at www.visionsciences.com.

Vision-Sciences owns the trademarks Vision Sciences™ and Slide-On™ and the
registered trademarks EndoSheath^®, EndoWipe^® and The Vision System^®.

Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995: This press release contains forward-looking statements, which are any
statements that are not historical facts.These forward-looking statements are
based on Vision-Sciences' current expectations, and should not be relied upon
as representing its views as of any subsequent date.Forward-looking
statements are subject to a variety of risks and uncertainties that could
cause the Company's actual results to differ materially from the statements
contained herein; risk factors are detailed in the Company's most recent
annual report and other filings with the U.S. Securities and Exchange
Commission.There is no assurance that any future results or events discussed
in these statements will be achieved.The Company does not assume any
obligation to update any forward-looking statements as a result of new
information or future events or developments, except as may be required by
law.

Vision-Sciences, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)

                                  Three Months Ended    Six Months Ended
                                   September 30,         September 30,
                                  2013       2012       2013       2012
                                                                
Net sales                         $3,968   $3,739   $7,620   $7,135
Cost of sales                     2,773     2,669     5,345     5,152
Gross profit                      1,195     1,070     2,275     1,983
                                                                
Selling, general, and              2,050     3,164     5,100     5,894
administrative expenses
Research and development expenses 428       527       847       1,014
Operating loss                     (1,283)   (2,621)   (3,672)   (4,925)
                                                                
Interest income                   1         1         1         2
Interest expense                  (44)      (237)     (85)      (431)
Other, net                         6         (35)      2         (40)
Debt cost expense                  --       (128)     --       (272)
Loss on extinguishment of debt     --       (1,244)   --       (1,244)
                                  (37)      (1,643)   (82)      (1,985)
Loss before provision for income   (1,320)   (4,264)   (3,754)   (6,910)
taxes
Income tax provision               3         --       3         1
Net loss                           $(1,323) $(4,264) $(3,757) $(6,911)
                                                                
Net loss per common share - basic  $(0.03)  $(0.09)  $(0.08)  $(0.15)
and diluted
                                                                
Weighted average number of shares  46,144    45,974    46,127    45,827
outstanding - basic and diluted
                                                                



Vision-Sciences, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except per share amounts)

                                                     September 30, March 31,
                                                      2013          2013
ASSETS                                                (unaudited)   (audited)
Current assets:                                                    
Cash and cash equivalents                             $455        $788
Accounts receivable, net                              2,815        3,624
Inventories, net                                      5,683        5,158
Prepaid expenses and other current assets             393          276
Total current assets                                  9,346        9,846
                                                                  
Property and equipment, net                           1,310        1,454
Other assets, net                                     77           77
Total assets                                          $10,733     $11,377
                                                                  
LIABILITIES AND STOCKHOLDERS' DEFICIT                              
Current liabilities:                                               
Accounts payable                                      $1,188      $1,300
Accrued expenses                                      778          728
Accrued compensation                                  560          656
Deferred revenue                                      153          130
Capital lease obligations                             46           75
Total current liabilities                             2,725        2,889
                                                                  
Convertible debt—related party                        20,000       17,000
Deferred revenue, net of current portion              61           62
Capital lease obligations, net of current portion     --          22
Total liabilities                                     22,786       19,973
                                                                  
Commitments and Contingencies                                      
Stockholders' deficit:                                             
Preferred stock, $0.01 par value                                   
Authorized—5,000 shares; issued and outstanding—none  --          --
Common stock, $0.01 par value                                      
Authorized—75,000 shares; issued—46,414 shares and    464          463
46,249 shares, respectively
Additional paid-in capital                            101,146      100,819
Treasury stock at cost, 59 shares and 34 shares of    (78)         (50)
common stock, respectively
Accumulated deficit                                   (113,585)    (109,828)
 Total stockholders' deficit                      (12,053)     (8,596)
 Total liabilities and stockholders' deficit      $10,733     $11,377



Vision-Sciences, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands, except per share amounts)

                                                        Six Months Ended
                                                         September 30,
                                                        2013       2012
Cash flows from operating activities:                              
Net loss                                                $(3,757) $(6,911)
Adjustments to reconcile net loss to net cash used in              
operating activities:
Depreciation and amortization                           362       406
Stock-based compensation expense                         328       1,012
Provision for (recovery of) bad debt expenses            7         (7)
(Gain) loss on disposal of fixed assets                  (5)       44
Debt cost expense                                        --       272
Loss on extinguishment of debt                           --       1,244
Changes in assets and liabilities:                                 
Accounts receivable                                     802       (600)
Inventories                                             (712)     (752)
Prepaid expenses and other current assets                (117)     (99)
Accounts payable                                        (112)     588
Accrued expenses                                        50        (303)
Accrued compensation                                     (96)      190
Deferred revenue                                         22        (7)
Advances from customers                                  --       (529)
Net cash used in operating activities                    (3,228)   (5,452)
Cash flows from investing activities:                              
Purchases of property and equipment                     (46)      (55)
Proceeds from disposal of fixed assets                   3         5
Net cash used in investing activities                   (43)      (50)
Cash flows from financing activities:                              
Proceeds from issuance of convertible debt—related party 3,000     --
Proceeds from promissory note—related party              --       5,000
Net proceeds from sale of common stock                   --       878
Proceeds from exercise of stock options                 --       85
Common stock repurchased                                 (28)      (24)
Payments of capital leases                              (34)      (48)
Net cash provided by financing activities               2,938     5,891
Net (decrease) increase in cash and cash equivalents    (333)     389
Cash and cash equivalents at beginning of period         $788     $2,674
Cash and cash equivalents at end of period               $455     $3,063

CONTACT: Keith Darragh
         VP, Finance, Principal Financial Officer, and
         Principal Accounting Officer
         Vision-Sciences, Inc.
         (845) 365-0600
         invest@visionsciences.com

         Lisa Wilson
         President
         In-Site Communications, Inc.
         (212) 452-2793
         lwilson@insitecony.com

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