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ORANGE COUNTY EARNINGS

July 19, 1996

Urohealth Systems Inc.: The Newport Beach manufacturer of medical products posted a net loss of $1.8 million, or 13 cents a share, for the first fiscal quarter ended June 30, which included a onetime charge of $3 million related to the early retirement of bank debt. That compares with a net loss of $2.7 million, or 24 cents a share, for the first fiscal quarter of the prior year. Sales increased 30% to $16.9 million from $13 million.

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