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LifeCell (LIFC:NASDAQ) Reports Preliminary 4Q:04 Financials and Provides 2005 Outlook BY JOHN CHOPACK, JANUARY 24, 2005

LIFC reported that it anticipated 4Q:04 product revenues to total $16.0 million which is a 49% increase over the 4Q:03. The company is anticipating 2004 product revenues to total $59 million compared to the $39 million reported during 2003 (52% increase) Management expects operating income to range between $6.7 million and $7.0 million for 2004 which is in-line with previous guidance and represents a 220-230% increase over 2003 operating income of $2.1 million.

Net revenues were driven by a 101% increase in orthopedic revenues which totaled $1.6 million during the 4Q:03. GraftJacket revenues, which are distributed via Wright Medical, totaled $1.1 million, an increase of 89% over the 4Q:03. AlloCraft revenues, which are sold by Stryker Corp., totaled approximately $500 thousand during the 4Q:04. Alloderm revenues totaled $12 million during the 4Q:04 an increase of 71% over the $7.0 million reported during the 4Q:03.

LIFC 4Q:04 Revenues vs. 4Q:03 ($ in millions) Source:Company reports

LIFC 2004 - 2005 Product Mix Source: Company reports

Management stated that it anticipated reconstructive revenues to represent 78% of product revenues during 2004 while Orthopedic and Gyn/Urology revenues are expected to total 10% and 12% of net product revenues during 2004. The company is forecasting a shift in mix during 2005. Reconstructive revenues are expected to increase by 4% as a percentage of net product revenues to 82%. Orthopedic revenues are expected to increase slightly to 11% of revenues while Gyn/Urology product sales are forecasted to decline by 5% as a percentage of revenues.

LifeCell's management is anticipating a strong 2005 with net revenues totaling $73 million to $77 million including revenues from research grants. This represents a 22-28% increase over preliminary 2004 product revenues. The company is also guiding for earnings to total $0.22 to $0.24 per diluted share. Both 2005 revenues and earnings forecasts were in-line with analyst expectations. LifeCell shares closed up 4% on Tuesday after the report.