Audiotech Healthcare Corporation (the "Company") announces that it has arranged a private placement of 180 $1,000 Convertible Debentures to six investors to raise a total of $180,000. The Convertible Debentures accrue interest at 10% ca, and are payable in blended monthly payments of principal and interest based upon a twenty year amortization period and mature two years from the date of issue. The Debentures are convertible at the option of the Holder at any time before the maturity date at a conversion price of $0.25 per share.

The Convertible Debentures are a direct, unsecured obligation of the Company ranking subordinate to all senior indebtedness.

The private placement is subject to the acceptance of the Canadian Venture Exchange.