Mr. Osvaldo Iadarola reports

Audiotech Healthcare has released its operating results for the year ended Sept. 30, 2000. During fiscal 2000, Audiotech focused its efforts on the initiation of negotiations with a number of significant acquisition candidates and on the establishment of an industry-leading Internet presence. As a result, much like last year, fiscal 2000 was a year characterized by foundation building which will enable Audiotech to create sustainable and profitable future growth. While no acquisitions were completed in fiscal 2000, the company was successful in opening new clinics in Revelstoke and Kamloops (North Shore), B.C. However, the initial contributions from these new operations as well as the first full year of results from the company's satellite clinic in Vanderhoof, B.C., were offset by the temporary decline in service capacity resulting from the loss of an audiologist at one of the company's clinics in Calgary, Alta. As a result, revenues from Canadian operations for the fiscal year were $1,650,096, down slightly from the $1,857,142 posted in fiscal 1999. Revenues from U.S. operations reached a record $914,558.

Geographic breakdown of revenues in Canadian dollars (years ended Sept. 30):

                    2000          1999

Canada         $ 1,650,096   $ 1,857,142

U.S.               914,558       907,480

Total            2,564,654     2,764,622

Between June and November, 2000, Audiotech hired three new audiologists to enhance its service capacity in the Calgary area, and has since embarked on a program to expand its Alberta operations. Key to this strategy was the acquisition of the operating assets of Rocky Mountain Audiology and Hearing Aid Clinics from 814696 Alberta Ltd. in October, 2000. Rocky Mountain operates three hearing care clinics in Alberta, including a full-service clinic in Calgary, as well as associated satellite clinics in Canmore and High River. As a result of this acquisition, which will contribute positively to the company's growth in fiscal 2001, Audiotech is now one of the largest providers of audiology care in the Calgary area. With critical mass in this growing market now secured, Audiotech is embarking on an aggressive marketing program to expand the physician referral network and patient base of each clinic.

Audiotech's financial results for fiscal 2000 also reflect the additional infrastructure costs related to the development of the company's e-commerce division and related Internet initiatives. HearingDepot.com was launched in late September, 2000, and as a result, contributed only minor revenues prior to the fiscal year-end on Sept. 30, 2000. However, financial results for fiscal 2000 reflect the start-up and overhead costs associated with the Internet initiatives. As a result of these expenditures, Audiotech has vaulted to the forefront of its industry in terms of Internet technologies. The company remains confident that its Internet initiatives will contribute considerable revenues in fiscal 2001 and beyond.

Due to the temporary reduction in service capacity in Calgary and the significant investments made in Internet technologies, Audiotech recorded a loss of $307,410 or 2.6 cents per share in fiscal 2000, after non-cash amortization costs of $110,713. Gross margins in fiscal 2000 remained relatively unchanged at 59.3 per cent, compared with 60.6 per cent a year earlier.

As a result of increased commitment to corporate development and investor relations activities, the company was successful in increasing the liquidity of its shares as well as its following in the investment community, both of which will assist in attracting future equity financing for the acquisition program. On Sept. 30, 2000, the company's stock price closed at 61 cents per share, an increase of more than 50 per cent during the fiscal year.

As at Sept. 30, 2000, Audiotech had a healthy cash balance of $488,389 with which to pursue acquisitions and to finance further growth initiatives. During fiscal 1999, the corporation raised a total of $185,000 through the issuance of 754,000 common shares pursuant to private placements and the exercise of stock options. Audiotech also raised a further $70,000 in convertible debt financing. The newly issued debentures bear interest at 10 per cent per year and mature on March 15, 2002. As at Sept. 30, 2000, the company had 12,332,325 shares issued and outstanding. The proceeds derived from these financings were used to finance Audiotech's Internet development program, the opening of its new B.C. clinics, corporate development activities and, subsequent to the year-end date, to finance the acquisition of Rocky Mountain as discussed above.

Subsequent to the end of the fiscal year, Audiotech further enhanced its balance sheet through the conversion of $275,000 of its convertible debentures into common shares at 50 cents per share. This transaction significantly improved the corporation's ability to assume additional debt as part of its acquisition program. The remaining maturing debentures, totalling $35,000, were paid or converted into new debentures.

The majority of Audiotech's long-term debt, excluding convertible debentures, comprises interest-free loans from a major North American hearing aid supplier. These loans do not require scheduled instalment payments but rather are reduced over time by the application of the company's bulk purchasing discounts.