TAMPA, Fla., Aug. 11, 2008 (GLOBE NEWSWIRE) -- SRI/Surgical Express, Inc. (Nasdaq:STRC), a leading provider of reusable surgical device reprocessing services supporting the healthcare industry, today announced financial results for the second quarter ended June 30, 2008.

For the second quarter of 2008, SRI Surgical reported total revenue of $25,113,000, an increase of $1,396,000 from the second quarter of 2007. The net loss for the second quarter of 2008 was $390,000 or $0.06 per basic and diluted common share compared to a net loss of $342,000, or $0.05 per basic and diluted common share reported for the second quarter of 2007. For the first six months of 2008, SRI Surgical reported total revenue of $49,081,000, an increase of $1,987,000 from the first half of 2007. Net loss for the first six months of 2008 was $1,684,000 or $0.26 per basic and common diluted common share compared to net loss of $931,000 or $0.15 per basic and diluted common share reported for the first half of 2007. The second quarter 2008 net loss was impacted by higher labor-related costs, instrument repair costs, fuel costs, and a reserve valuation allowance relating to deferred tax assets, partially offset by the reversal of a previously accrued discount that was not paid.

On August 7, 2008, SRI Surgical completed a new three-year $24.3 million credit facility with Bank of America, N.A., one of its existing lenders, which replaces its previous credit facility that was set to expire on September 21, 2008, and a mortgage loan on its headquarters facility.

Gerald Woodard, Chief Executive Officer said, "We continue to face many challenges as we reposition the company and we are focused on the task at hand."

About SRI Surgical

SRI Surgical (www.srisurgical.com) provides central processing and supply chain management services to hospitals and surgery centers across the United States. SRI Surgical serves hospitals and surgery centers in 19 states from 10 reprocessing facilities, one disposable products facility, and four distribution centers located throughout the United States.

The SRI/Surgical Express, Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=4997

Forward-Looking Statements

The statements in this press release that are not historical, including statements regarding SRI Surgical's beliefs, expectations, and strategies, constitute "forward looking statements" within the meaning of the federal securities laws. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Important factors that could cause the differences are discussed in SRI Surgical's reports on Forms 10-Q, 10-K, and 8-K that the Company periodically files with the Securities and Exchange Commission. These factors include SRI Surgical's sales process and market acceptance of its products and services, SRI Surgical's capital needs, its dependence on significant customers and a significant supplier, risks of a new product offering, and the competitive healthcare marketplace. SRI Surgical does not undertake to update any forward-looking statements in this press release. Copies of SRI Surgical's SEC filings, including its annual report on Form 10-K and quarterly reports on Form 10-Q, may be obtained by contacting SRI Surgical's investor relations department at (813) 891-9550 or at the Investors section of the SRI Surgical Website at www.srisurgical.com.

                              SRI/SURGICAL EXPRESS, INC.
                           Condensed Statements of Operations
                          (In thousands, except per share data)
                                       (unaudited)

                              Three Months Ended   Six Months Ended
                                   June 30,            June 30,

                                2008      2007      2008      2007
                                ----      ----      ----      ----
 Revenues                    $ 25,113  $ 23,717  $ 49,081  $ 47,094
 
 Cost of revenues              19,266    18,117    38,191    36,125
                             --------  --------  --------  --------
  Gross profit                  5,847     5,600    10,890    10,969

 Distribution expenses          1,862     1,570     3,620     3,141
 
 Selling and administrative
  expenses                      4,207     4,301     8,657     8,652
                             --------  --------  --------  --------
  Loss from operations           (222)     (271)   (1,387)     (824)

 Interest expense                 254       372       529       737
 
 Other income                     (91)      (90)     (185)     (122)
                             --------  --------  --------  --------
  Loss before income taxes       (385)     (553)   (1,731)   (1,439)

 Income tax expense (benefit)       5      (211)      (47)     (508)
                             --------  --------  --------  --------
  Net loss                   $   (390) $   (342) $ (1,684) $   (931)
                             ========  ========  ========  ========

 Basic loss per common share $  (0.06) $  (0.05) $  (0.26) $  (0.15)
                             ========  ========  ========  ========
 Weighted average common
  shares outstanding, basic     6,387     6,394     6,386     6,376
                             ========  ========  ========  ========
 Diluted loss per common
  share                      $  (0.06) $  (0.05) $  (0.26) $  (0.15)
                             ========  ========  ========  ========
 Weighted average common
  shares outstanding, diluted   6,387     6,394     6,386     6,376
                             ========  ========  ========  ========

                    SRI/SURGICAL EXPRESS, INC.
                     Condensed Balance Sheets
                         (In thousands)

                                          As of       As of
                                         June 30,  December 31,
                                           2008        2007
                                        ---------  -----------
                                       (unaudited)
 Cash and cash equivalents              $     628   $     656
 Accounts receivable, net                  12,481      11,613
 Inventories, net                           6,011       6,159
 Prepaid expenses and other assets          1,538       2,847
 Reusable surgical products, net           20,735      19,416
 Property, plant and equipment, net        30,838      31,277
                                        ---------   ---------

  Total assets                          $  72,231   $  71,968
                                        =========   =========


 Notes payable                          $   3,724   $   2,493
 Accounts payable                           9,137       7,984
 Accrued expenses                           5,070       5,464
 Mortgage payable                           4,167       4,286
 Bonds payable                              6,730       7,060
 Deferred tax liability, net                   --          55
                                        ---------   ---------

  Total liabilities                        28,828      27,342

  Shareholders' equity                     43,403      44,626
                                        ---------   ---------

  Total liabilities and shareholders'
   equity                               $  72,231   $  71,968
                                        =========   =========

CONTACT:  SRI/Surgical Express, Inc. 
          Wallace Ruiz, Chief Financial Officer
          (813) 891-9550
          wruiz@srisurgical.com