KAMLOOPS, B.C. - Audiotech Healthcare Corporation (AUD:TSX Venture Exchange) is pleased to announce that the company has expanded its term credit facility with a major hearing aid manufacturer under a multifaceted agreement originally announced in June 2004.

Audiotech has received an additional CDN$300,000 advance on the credit facility which bears interest at 5.5% per annum. The entire proceeds have been used to repay an equal amount of the corporation's 10% convertible debentures thereby reducing annual interest costs and amortization of the debenture discount, and reducing potential share dilution.

Commenting on the transaction, Audiotech's Chief Financial Officer Darryl Walker said, "We remain committed to reducing Audiotech's long-term debt and to cutting debt service costs to further increase profitability through the negotiation of more favorable financing arrangements with our key partners and lenders. This agreement not only provides immediate tangible benefit to Audiotech by reducing annual debt servicing costs, but it further strengthens our working relationship with a key supplier. We also believe that this arrangement demonstrates the supplier's confidence in Audiotech and its position within the Canadian hearing care industry."

The company's shares are listed and posted for trading on Tier 1 of the TSX Venture exchange under the symbol "AUD." For more information on the company, contact Osvaldo (Ozzie) Iadarola, President & CEO, at (250) 372-5847, or Doren Quinton of QIS Capital, investor relations, at (250) 376-8989, or visit the company's website at www.audiotech.org.

AUDIOTECH HEALTHCARE CORPORATION
First Bank Building
760-175 Second Avenue
Kamloops, B.C. V2C 5W1
Phone: (250) 372-5847
Fax: (250) 372-3859
Email: info@audiotech.org

Except for historical information contained herein this document contains forward-looking statements. These statements contain known and unknown risks and uncertainties that may cause the company's actual results or outcomes to be materially different from those anticipated and discussed herein.