ADVANCED ORTHOPEDIC TECHNOLOGIES ANNOUNCES FIRST QUARTER RESULTS AND EXCLUSIVE PROVIDER AGREEMENT WITH UNIVERSITY OF NEW MEXICO HOSPITAL.

WEST HEMPSTEAD, N.Y.--(BUSINESS WIRE)--May 13, 1996--Advanced Orthopedic Technologies, Inc. (Nasdaq Small Cap Issues: AOTI) ("AOTI"), a leading national provider of orthotic and prosthetic ("O&P") patient care services, today announced financial results for the first quarter ended March 31, 1996. (See attached table).

The Company also announced that it has signed an exclusive provider agreement through 1997 with the University of New Mexico Hospital ("UNMH"), located in Albuquerque, New Mexico. UNMH is the only Level 3 trauma center in the state. This agreement took effect on May 2, 1996.

For the three months ended March 31, 1996, sales increased 17.8% to a record $3,930,000 from $3,337,000 for the same period in 1995. Operating income increased more than 50% to 403,000 from $268,000 reported in the first quarter of 1995. Net income for the first quarter increased 96.7% to $179,000, or $.04 per share, versus net income of $91,000, or $.02 per share, reported for the comparable prior year period.

Andrew H. Meyers, President and Chief Executive Officer of AOTI, commented, "First quarter sales were a record for any quarter in the Company's history. Increased sales primarily reflect the inclusion of sales from Med-Tech O&P Services ("Med-Tech"), whose assets were acquired by AOTI in January, as well as sales generated from additional managed care contracts entered into over the past year. Record sales were achieved despite the fact that several of the Company's patient care centers in the New York/New Jersey metropolitan area were impacted by severe weather conditions during the quarter. The acquisition of Med-Tech, which has made AOTI the single largest O&P services provider in the New York/New Jersey metropolitan area, is the type of strategic acquisition that AOTI will continue to pursue. We will continue to seek acquisition candidates that operate in the same geographic area as AOTI where the acquired company's operations can be integrated into existing operations. In turn, we believe that this will result in greater operating efficiencies and, in the longer-term, increased profit margins. In this regard, while selling, general and administrative expenses ("SG&A") in the first quarter rose 4.8% over the prior year period, SG&A as a percentage of revenues for the first quarter decreased to 38.6% from 43.3% in the first quarter of 1995."

Mr. Meyers continued, "Our contract with UNMH makes AOTI the exclusive provider of O&P services on both an inpatient and outpatient basis. In addition to treating critically injured patients on-site at UNMH, we expect to experience higher patient volume at AOTI's existing New Mexico patient care centers as a result of this agreement."

In closing, Mr. Meyers stated, "We will continue to pursue managed care agreements as a means to expand our business internally. AOTI procured 11 national and /or regional-specific managed care contracts during the first quarter of 1996 and now has 87 such agreements in place. We remain optimistic that AOTI is well- positioned for future growth."

Advanced Orthopedic Technologies is one of the nation's leading providers of patient care services to the orthotic (design, fabrication and fitting of custom-made braces and other devices) and prosthetic (design, fabrication and fitting of artificial limbs) rehabilitation markets. Currently, the Company operates 35 patient care centers in California, New Mexico, New Jersey, New York, Virginia and West Virginia.

This press release contains forward looking statements which involve numerous risks and uncertainties. The Company's actual results could differ materially from those anticipated in such forward looking statements as a result of certain factors, including those set forth in the Company's filings with the Securities and Exchange Commission.

CONTACT: Advanced Orthopedic Technologies Andrew H. Meyers, Chief Executive Officer [phone]

-or- INVESTOR RELATIONS COUNSEL: The Equity Group Inc. Devin Sullivan [phone] Robert Goldstein [phone]

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        ADVANCED ORTHOPEDIC TECHNOLOGIES, INC. AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF INCOME
                             (Unaudited)

                                     Three Months Ended
                                          March 31,
                                      1996        1995
Sales                             3,930,000    $3,337,000

Gross profit                      1,918,000     1,713,000

Operating income                    403,000       268,000

Income before provision for
 income taxes                       318,000       171,000

Provision for income taxes          139,000        80,000

Net income                         $179,000       $91,000

Earnings per common share              $.04          $.02

Shares used in earnings per
 common share computation         4,918,061     4,452,567

CONTACT: Advanced Orthopedic Technologies

Andrew H. Meyers, Chief Executive Officer

[phone]

or

INVESTOR RELATIONS COUNSEL:

The Equity Group Inc.

Devin Sullivan [phone]

Robert Goldstein [phone]