The Company reported total revenue of $227,754 in the second quarter ended December 31, 2002, relating to sales of its HDI/PulseWave™ CR-2000 Research CardioVascular Profiling System and “per-patient-tested” revenue derived from the CVProfilor^® DO-2020 System. Revenue in the prior year’s comparable second quarter totaled $232,493. The Company incurred a net loss of $(901,329) in the quarter ended December 31, 2002, or $(.12) per share, compared with a net loss of $(1,200,638) in the quarter ended December 31, 2001, or $(.20) per share. For the six month period ended December 31, 2002, total revenue was $346,816, compared to $324,208 for the same period one year ago. The Company reported a cash balance on December 31, 2002 of $605,946.

The Company also reported that CVProfilor^® DO-2020 System utilization continues to gain momentum as do cumulative System placements which totaled 127 as of December 31, 2002. As of December 31, 2002, the CVProfilor^® was being used in 23 States throughout the U.S., of which physicians are currently being reimbursed in 18 States and the Company is awaiting data on the remaining States. Reimbursement will always vary considerably by the patient’s medical necessity, by physician, by provider, by geography and by provider coverage plans.

“In light of our limited cash reserves, we implemented additional operating cost reductions to preserve working capital as we continue to seek all possible financing alternatives,” said Greg H. Guettler, President of Hypertension Diagnostics. “We continue to move forward with our plans to leverage the scientific merit of our technology into building a successful, profitable business. Our bibliography of published scientific works now contains more than 161 references and we are attempting to raise sufficient working capital to support expansion of our distribution network,” said Guettler.

“Despite a limited distribution network and a difficult economic environment, we continue to make progress achieving quarter-to-quarter increases in both CVProfilor^® DO-2020 placements and utilization,” said Guettler. “Rental revenue derived from CVProfilor^® DO-2020 utilization increased 21% (from $72,945 to $88,650) and our sales related revenue increased more than 300% (from $28,700 to $121,688) from the first quarter to the second quarter of fiscal year 2003. Similarly, rental revenue derived from our CVProfilor^® DO-2020 placements for the six month period ended December 31, 2002 was more than 400% higher than rental revenue from the comparative six month period ended December 31, 2001 (from $30,347 to $161,595). Also, during the quarter ended December 31, 2002, we had our second commercial shipment of CVProfilor^® DO-2020 Systems to China following the Chinese government’s recent approval to market. We believe that the disease prevention and early identification focus of the Chinese health care system provides a sizeable long-term opportunity,” added Guettler.

“In addition, we had other notable accomplishments in the quarter ended December 31, 2002. We successfully implemented the first half of a test market with Costco Wholesale warehouses on the West Coast, the second half of which will be completed in the third quarter of this fiscal year. If the test market proves valuable to Costco members, CVProfiles™ will be offered to members nationwide. We also conducted a co-marketing campaign with Broadway Books, providing key opinion leader physicians around the world with copies of The Cardiovascular Cure written by John P. Cooke, M.D., Ph.D., associate professor and head of the Section of Vascular Medicine at Stanford University’s Medical School. Materials sent with the book provided an endorsement from Dr. Cooke regarding the CVProfilor^® DO-2020 System and its value in the assessment of endothelial function and vascular health. In addition, we received nationwide acknowledgement of the CVProfilor^® DO-2020 by virtue of an article authored by Dr. Cooke and published in the February 10, 2003 issue of U.S. News and World Report entitled “A Self-Defense Against Heart Attack and Stroke.” We also added two new screening companies in our west coast territory during the quarter ended December 31, 2002, thereby increasing our direct-to-consumer marketing exposure.”

View/download Q2 2003 Results in .pdf format

Forward-looking statements in this press release are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company wishes to caution readers not to place undue reliance on any forward-looking statements and to recognize that the statements are not a prediction of actual future results. Actual results could differ materially from those presented and anticipated in the forward-looking statements due to the risks and uncertainties set forth in the Company’s 2002 Annual Report on Form 10-KSB under the caption “Risk Factors,” as well as others not now anticipated.


Contact: Greg H. Guettler, President