ENDOTRONICS &lt;ENDO> EXPECTS LOSS FOR YEAR

  Endotronics Inc said it expects to
  incur "substantial losses" for the second quarter ending March
  31 and fiscal year ending Sept 30, 1987.
      As one factor behind the anticipated loss, Endotronics
  cited a dispute by one of its Japanese distributors, &lt;Yamaha
  Inc>, over payment of a 3,686,000 dlr promissory note.
      In a Form 8-K filing with the Securities and Exchange
  Commission, Endotronics said the note was for overdue accounts
  receivable from sales of instruments to Yamaha and another
  Japanese distributor during the company's 1986 fiscal year.
      Endotronics said at its present reduced level of operations
  it will exhaust all currently available cash and credit
  facilities in early May 1987. It said this assumes full use of
  the remaining 1,250,000 dlrs available under a line of credit
  from Celanese Corp, which requires approval of Celanese Corp
  &lt;CZ>.
      The company said its ability to obtain funding was
  adversely affected by a suit filed March 4 by two of its
  shareholders seeking to represent a class of holders against
  three officers of Endotronics.
      Endotronics said the complaint against it alleges
  violations of the federal securities laws in connection with
  statements made in the company's annual and quarterly reports.
      The company also said the Securities Division of the
  Minnesota Department of Commerce is conducting an inquiry into
  the company's Japanese sales for fiscal 1986 and trading by
  insiders and brokers in the company's common shares.
      It said similar inquiries are being conducted by the
  Securities and Exchange Commission. The investigations will
  hurt the company's ability to obtain funding, it said.
      As a result of the dispute over payment of the promissory
  note, the law suit challenging its financial data and the
  various investigations concerning insider trading, the company
  said it no longer expects that anticipated declines in
  instrument sales in Japan in fiscal 1987 will be offset by
  increased instrument sales in other foreign countries and the
  United States.
  

