Audiotech Healthcare has released its financial and operating results for the nine-month period ended June 30, 2003.

Audiotech achieved net earnings of $87,207 or 0.65 cent per share for the quarter ended June 30, 2003, up from a profit of only $1,737 during the same quarter a year earlier. Earnings before interest, taxes, depreciation and amortization for the quarter were a record $126,635, an increase of 139 per cent.

General and administrative expenses continue to decline, totalling only $419,845 during the quarter ended June 30, 2003, a decrease of almost 20 per cent over the same quarter in fiscal 2002. Expenses have declined every quarter since management initiated its aggressive cost reduction program during the latter half of fiscal 2002, despite a significant increase in interest costs related to the corporation's long-term debt financing. Cost reductions have been achieved in virtually every major cost category. Management anticipates that general and administrative expenses will stabilize or decline further on a percentage of revenue basis.

Audiotech achieved revenues of $2,319,323 for the nine-month period ended June 30, 2003, up slightly from the $2,279,442 reported during the same period in fiscal 2002. Revenues for the third quarter of fiscal 2003 were $819,650, roughly on par with sales during the comparable period a year earlier.

        FINANCIAL HIGHLIGHTS
     Three months ended June 30

                       2003        2002

Total revenues    $ 819,650   $ 830,536

Gross profit        506,728     521,582

Net earnings         87,207       1,737

EPS -- basic         0.0065      0.0001

        FINANCIAL HIGHLIGHTS
     Nine months ended June 30

                       2003        2002

Total revenues  $ 2,319,323 $ 2,279,442

Gross profit      1,396,086   1,458,298

Net earnings          9,379      11,282

EPS -- basic         0.0007      0.0008

In light of the success of the company's cost reduction program and continued growth, management continues to examine acquisitions and other transactions and initiatives to maximize shareholder value. It is management's opinion that Audiotech's share price does not reflect the underlying value of its operations. Accordingly, the board of directors is currently reviewing various alternatives to create increased awareness in the financial community of the company's recent financial performance and growth plans.