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EXHIBIT 99.1
CONTACT: Gerald B. Lichtenberger, Ph.D.
V.P. Business Development
Tel: (845) 365-0600
FOR IMMEDIATE RELEASE
VISION-SCIENCES, INC. ANNOUNCES $3.5 MILLION PRIVATE PLACEMENT
Natick, Mass. - January 3, 2001 -- Vision-Sciences, Inc., (Nasdaq: VSCI) (the
"Company") today announced that the Company has completed a $3,464,200 private
equity placement with Mr. Katsumi Oneda, Chairman, CEO and President, Mr. Lewis
Pell, Vice Chairman, Dr. Gerald B. Lichtenberger, Vice President of Business
Development, Mr. Kenneth Anstey, a member of the Company's Board of Directors
and a group of private investors. The Company sold an aggregate of 5,587,418
shares of common stock at a price of $0.62 per share, which represents 80% of
the average closing price of the common stock during the five trading days ended
December 11, 2000. In the offering, Mr. Oneda and Mr. Pell each purchased
1,612,903 shares, Dr. Lichtenberger purchased 81,000 shares, Mr. Anstey
purchased 161,290 shares and the remaining investors purchased 2,119,322 shares.
After this transaction, Mr. Oneda and Mr. Pell will own approximately 25.1% and
24.7%, respectively, of the outstanding shares of the common stock of the
Company.
Mr. Oneda stated, "This investment will be used for working capital purposes, to
upgrade the efficiency of our sheath manufacturing equipment and will also
include the proposed financing of the Company's proportionate share of expected
new developments at the Company's Israeli affiliate, 3DV Systems, Ltd., which we
feel has demonstrated great progress and potential. Together, Mr. Pell and I
have invested $14 million in the Company since 1995 in support of the Company's
vision, and we continue our firm belief in that vision. Mr. Pell and I believe
that the recent decline in the price of the Company's stock does not reflect the
true value of the Company's assets, including its improving operations and its
investments in Israeli-based technologies."
Vision-Sciences, Inc. develops, manufactures and markets unique flexible
endoscopic products utilizing disposable sheaths (the EndoSheath-TM-) which
provide the users quick, efficient product turnover while ensuring the patient a
contaminant-free product. Information about the Company and its products can be
found on the Internet at http://www.visionsciences.com.
Except for the historical information herein, the matters discussed in this news
release include forward-looking statements that may involve a number of risks
and uncertainties. Future results may vary significantly based on a number of
factors including, but not limited to, the Company's history of losses, the
potential lack of third-party reimbursements for the Company's products,
regulatory restrictions by the FDA and other regulatory agencies, the
availability and cost of certain components and subassemblies purchased from
third parties, risks in market acceptance of new products and services and
continuing demand for same, the impact of competitive products and pricing, the
Company's ability to protects its intellectual property, potential exposure to
product liability risks, and other risk factors detailed in the Company's most
recent annual report and other filings with the Securities and Exchange
Commission.
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