CLOSURE MEDICAL CORPORATION COMPUTATION OF NET INCOME (LOSS) PER SHARE (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE DATA) THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, 1999 1998 1999 1998 ------------- ------------- ------------- ------------- Weighted average common shares outstanding for the period- basic EPS 13,333 13,278 13,317 13,264 ------------- ------------- ------------- ------------- Effect of dilutive stock options (a) - 378 - - ------------- ------------- ------------- ------------- Weighted average common shares outstanding for the period- diluted EPS 13,333 13,656 13,317 13,264 ============= ============= ============= ============= Net income (loss) $ (1,204) $ 494 $ (1,754) $ (3,782) ============= ============= ============= ============= Net income (loss) per share- basic $ (0.09) $ 0.04 $ (0.13) $ (0.29) ============= ============= ============= ============= Net income (loss) per share- diluted $ (0.09) $ 0.04 $ (0.13) $ (0.29) ============= ============= ============= ============= (a) Options to purchase 433,937 shares of common stock were outstanding at the quarter ended September 30, 1998 but were not included in the computation of diluted EPS as their effect was anti-dilutive.