NEWS RELEASE                                 PLC
                                             MEDICAL
                                             SYSTEMS, INC.


FOR IMMEDIATE RELEASE:


CONTACTS:     MICHELE FASANO
              DIRECTOR OF CORPORATE COMMUNICATIONS
              800-211-7327


                 FOOD AND DRUG ADMINISTRATION FILES PLC SYSTEMS'
                         PREMARKET APPROVAL APPLICATION
                              FOR THE HEART LASERTM

              - A MILESTONE ACHIEVEMENT IN THE FDA REVIEW PROCESS -

FRANKLIN,  MA,  FEBRUARY 26, 1997 -- PLC SYSTEMS INC.  (AMEX SYMBOL:  PLC) today
announced that the Company's  expedited PreMarket Approval (PMA) application for
its  proprietary  1000 watt CO2 Heart  Laser has been filed by the Food and Drug
Administration  (FDA).  The filing of this expedited PMA  application  indicates
that  the FDA is  prepared  to  prioritize  and  commit  its  resources  to this
application through the remaining review process

M. Lee Hibbs,  President and CEO of PLC Systems Inc., stated, "The filing of our
application is a major milestone achievement in the FDA review process. The fact
that expedited  review has been granted should  intensify the FDA'a activity and
may compress the  remaining  process  time." Mr. Hibbs  continued,  "After seven
years of development and clinical  testing of The Heart LaserTM in the treatment
of coronary artery disease, PLC Systems has entered what we believe is the final
stage of a definitive process toward FDA approval.  We believe the recent filing
of the PMA  application  for the Company's CO2 Heart Laser allows PLC Systems to
remain on track for an FDA approval this year,  establishing a long,  solid U.S.
lead time for The Heart LaserTM over any competing technologies."

Mr. Hibbs  concluded,  "The  clinical  results of TMR using The Heart LaserTM in
late  stage  coronary  artery  disease  patients  have been  published  in major
cardiovascular  journals  worldwide as well as  presented at several  scientific
meetings. The results have demonstrated  statistically significant reductions in
chest pain,  increases  in  myocardial  perfusion  and  improvements  in patient
quality of life.  We believe The Heart LaserTM has the potential to be a leading
device in the treatment of heart disease. It is the Company's  expectations that
TMR using The Heart  LaserTM will be rapidly  accepted as a standard of care for
end-stage  coronary artery disease  patients as well as evaluated and used as an
adjunct  to  the  approximate   675,000  cardiac  bypass   surgeries   performed
worldwide."


                                    - OVER -





PLC SYSTEMS INC. is a cardiac  revascularization  company whose mission is to be
the global  leader in  Transmyocardial  Revascularization  (TMR) by  pioneering,
developing and supplying TMR systems and their components. TMR has the potential
to provide patients  suffering from coronary artery disease a third  alternative
or adjunct to angioplasty and cardiac bypass surgery. PLC Medical Systems, Inc.,
a wholly owned subsidiary of PLC Systems Inc., has developed the CO2 Heart Laser
which  employs the  Company's  patented  heart-synchronized  pulsed laser system
technology  for TMR.  PLC  Systems  has been  granted  expedited  review  of its
PreMarket  Approval (PMA)  application  for TMR using The Heart LaserTM to treat
cardiac  patients with  medically  refractory  angina who are not candidates for
angioplasty or bypass surgery.


                                      # # #



Note:  Certain of the above  statements may be  forward-looking  statements that
involve risks and uncertainties.  In such instances, actual results could differ
materially  as  a  result  of  a  variety  of  factors   including   competitive
developments,  no guarantee  of FDA approval and other risk factors  listed from
time to time in the Company's SEC reports.