ADM Tronics Finalizes Acquisition of SofPulse Medical Device Assets.

NORTHVALE, N.J.--(BUSINESS WIRE)--August 20, 1998--ADM Tronics Unlimited, Inc. (NASDAQ:ADMT) finalized the acquisition of the SofPulse medical device assets by consummating the asset purchase agreement with Electropharmacology, Inc. previously announced. SofPulse is an FDA cleared, non-invasive electronic therapy device for adjunctive use in palliative treatment of postoperative edema and pain in superficial soft tissues. ADM Tronics will manufacture the device and distribute it in the US and internationally.

SofPulse was previously distributed for sale and rental to medical professionals and facilities in a number of US states. ADM Tronics will maintain current distribution and intends to expand distribution to the rest of the US and to its distributors in foreign countries. In addition the Company intends to aggressively market SofPulse for postoperative treatment of edema and pain following cosmetic surgery. The Company's decision is based on positive clinical observations by plastic surgeons in New York and California who participated in a year-long beta market test. According to Newsweek, "Last year plastic surgeons performed an estimated 2.1 million cosmetic procedures... That's up 50 percent since 1992..." The growth of cosmetic and plastic surgery procedures has fueled greater interest in finding postoperative treatment methods to foster quicker recovery and better results. "We are excited about the potential for SofPulse in cosmetic and plastic surgery," stated Andre' DiMino, COO of ADM Tronics, "We are confident that we can expand SofPulse revenues in many different areas."

Through the asset purchase, ADM Tronics acquired exclusive worldwide rights to SofPulse for the use as described above and certain other related assets such as new prototypes, plans, testing and manufacturing equipment. In addition, ADM Tronics received 345 SofPulse devices of which 101 are under rental agreements, 49 are being used in clinical trials or in promotional efforts by distributors plus an inventory of 195 new and refurbished units. ADM Tronics paid $150,000 in cash, 2,925,000 shares of ADM Tronics' common stock and, depending on sales targets being reached, a Warrant to purchase 1,500,000 additional shares at a purchase price of $.426 per share. ADM Tronics has agreed and intends to shortly register the shares with the SEC. The shares are subject to certain lockup provisions.

ADM Tronics is a technology based developer and manufacturer of a diversified line of products categorized into three distinct market segments -- therapeutic, non-invasive electronic medical devices, environmentally safe chemical products and innovative topical dermatological products.

    CONTACT: ADM Tronics Unlimited, Inc.
              Andre' DiMino
              e-mail: [e-mail]