Mr. Dan Allen reports

Financial and operating results for the nine months ended June 30, 2001, were as follows:

This release should read in conjunction with the company's consolidated financial statements for the period. These statements are available on the company's Web site, www.audiotech.org, and on SEDAR at www.sedar.com.

Results of operations

Revenues for the nine months ended June 30, 2001, rose to a record $2.1-million, an increase of 7.5 per cent over sales for the same period a year ago.

Revenues derived from Audiotech's Canadian operations exhibited the strongest growth, rising almost 13 per cent to $1,430,549, despite a change in billing procedures by a major health insurer which negatively affected gross sales during the second quarter. Revenues in the United States were relatively unchanged due to the maturity of Audiotech's Idaho clinics.

Gross profit margins for the period rose to 60.1 per cent from 58.5 per cent in fiscal 2000, as a result of management's initiatives to create further operating efficiencies and economies of scale.

Operating expenses increased by approximately $240,000 or 18.4 per cent as compared with the first three quarters of fiscal 2000, in large part due to an increase in direct wages of approximately $174,000, and rent in the amount of $47,500. These higher costs are associated with the company's clinic expansion program (including both acquired clinics and new startups), in Canada. Management believes that these costs were a necessary short-term investment in the company's long-term growth. As recently announced, Audiotech has consolidated the operations of its Matheson's southwest Calgary clinic with its recently acquired Rocky Mountain clinic located at 8330 McLeod Trail S.E., Calgary. This move will enable the corporation to eliminate unnecessary duplicate overhead costs related to its Alberta operations, thereby significantly reducing related operating expenses and enhancing profitability. Due to these investments, Audiotech posted a loss of $296,310 or three cents per share for the period (after non-cash amortization costs of $84,876). As a result of management's continuing program to increase operational efficiencies during the third quarter, annual savings in wages, benefits and other overhead costs in the amount of approximately $265,000 have been achieved. Had these cost reductions been in place for the entire nine-month period ended June 30, 2001, as they will be on a going-forward basis, Audiotech would have recorded positive operating cash flow (EBITDA) of roughly $75,000 for the period.

    GEOGRAPHIC BREAKDOWN OF REVENUES
       Nine months ended June 30

                  2001          2000

Canada        $ 1,430,549   $ 1,267,897

U.S.              668,792       684,328
              -----------   -----------
Total         $ 2,099,341   $ 1,952,225
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