$1.5 Million Released from Escrow; Additional Operating Capital helps position Lifestream Technologies for 2004.

Business Editors/Health/Medical Writers

POST FALLS, Idaho--(BUSINESS WIRE)--Dec. 10, 2003

Lifestream Technologies, Inc. (OTCBB:LFTC), a leading developer and marketer of consumer cholesterol monitors and professional screening instruments, announced today that the $1.5 million of its recent financing being held in escrow was released. The funds were escrowed pending stockholder approval, which was given on December 1.

"These funds were made available to the Company thanks to the ongoing support of our stockholders and investors. Lifestream intends to continue focusing on its awareness campaign and building inventory, as well as other operational issues. With the recent signing of the Medicare reform bill, which included semi-annual reimbursement for cholesterol screening, we will increase our focus on supporting the needs of healthcare providers and screeners," stated Christopher Maus, Lifestream's President and CEO.

As stated by President Bush when he signed the reform bill, "The Medicare system will now help seniors and their doctors diagnose health problems early, so they can treat them early and our seniors can have a better quality life. For example, starting next year, all people on Medicare will be covered for blood tests that can diagnose heart diseases ... Modern health care is not complete without prevention -- so we are expanding preventive services under Medicare."

Maus continued, "With this huge screening initiative being sponsored by the federal government, the Company will be doubling its efforts over the coming months to be well positioned for this opportunity."

About Lifestream Technologies

The Company developed and currently markets a line of economical cholesterol screening and monitoring devices for both consumers and healthcare professionals, which provide accurate test results in three minutes.

The Company's product line aids the health conscious consumer in monitoring their risk of heart disease. By regularly testing cholesterol at home, individuals can monitor the benefits of their diet, exercise and/or drug therapy programs. Monitoring these benefits can support the physician and the individual's efforts to improve compliance. Lifestream's products also integrate a smart card reader further supporting compliance by storing test results on an individual's personal health card for future retrieval, trend analysis and assessment.

The Lifestream Cholesterol Monitor is an affordable hand-held device, which provides users with accurate results in less than three minutes. The product line has been designed to accommodate The Data Concern(TM) smart card allowing multiple users the ability to store their personal results. Lifestream's products are now available in pharmacy and retail outlets nationwide. To find out which retailers carry Lifestream's products, go to "Store Locator" at the Web site www.knowitforlife.com. For more information on Lifestream, visit www.lifestreamtech.com.

This news release includes certain forward-looking statements within the meaning of the safe harbor protections of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, but are not limited to, statements regarding our current business plans, strategies and objectives that involve risks and uncertainties, and in particular statements referring to our expectations for increased market penetration and improved gross margins from our recently introduced second generation consumer monitors and statements regarding our expectations that we can obtain necessary additional financing and investment. These forward-looking statements involve risks and uncertainties that could cause actual results to differ from anticipated results. The forward-looking statements are based on our current expectations and what we believe are reasonable assumptions given our knowledge of the relevant markets; however, our actual performance, results and achievements could differ materially from those expressed in, or implied by, these forward-looking statements. Factors, within and beyond our control, that could cause or contribute to such differences include, among others, the following: the success of our capital-raising and cost-cutting efforts, developing and marketing relatively new medical diagnostic devices, including technological advancements and innovations; consumer receptivity and preferences; availability, affordability and coverage terms of private and public medical insurance; political and regulatory environments and general economic and business conditions; the effects of our competition; the success of our operating, marketing and growth initiatives; development and operating costs; the amount and effectiveness of our advertising and promotional efforts; brand awareness; the existence of adverse publicity; changes in business strategies or development plans; quality and experience of our management; availability, terms and deployment of capital; labor and employee benefit costs; as well as those factors discussed in our most recent Quarterly Report on Form 10-QSB for the three months ended March 31, 2003 and in "Item 1 - Our Business," "Item 6 - Our Management's Discussion and Analysis," particularly the discussion under "Risk Factors - Substantial Doubt as to our Ability to Continue as a Going Concern" and elsewhere in our most recent Annual Report on Form 10-KSB for our fiscal year ended June 30, 2002, both filed with the United States Securities and Exchange Commission. Readers are urged to carefully review and consider the various disclosures made by us in this report, in the aforementioned Form 10-QSB and Form 10-KSB, and those detailed from time to time in our other reports and filings with the United States Securities and Exchange Commission that attempt to advise interested parties of the risks and factors that are likely to affect our business.