Advanced Orthopedic Technologies reports third quarter and nine month results.

Orthopedic Technologies, Inc. (Nasdaq Small Cap Issues: AOTI) ("AOTI") today announced financial results for the third quarter and nine months ended September 30, 1995 (See attached table).

Sales for the third quarter ended September 30, 1995 were $3,417,000 compared to $3,537,000 for the same period in 1994. Operating income for the quarter was $417,000 versus $526,000 for the same period in 1994. Net income for the quarter was $174,000, or $.04 per share, compared to net income of $245,000, or $.06 per share, for the comparable prior year period.

Sales for the nine month period ended September 30, 1995 rose to $10,176,000 from the $9,694,000 reported in the comparable prior year period. Operating income for this period was $1,072,000 compared to $1,116,000 for the same period in 1994. Net income was $426,000, or $.10 per share, compared to net income of $485,000, or $.11 per share, reported in the same period last year. Higher sales for the nine month period were due primarily to internal growth, as well as the inclusion in the first quarter of 1995 of sales added by the acquisition of Clayton Prosthetics & Orthotics, Inc. completed in April 1994.

Andrew H. Meyers, President and Chief Executive Officer of AOTI, commented, "As part of our continuing efforts to strengthen AOTI's position as a leading national provider of orthotic and prosthetic services, during the first nine months of 1995 we have added 27 managed care contracts for a total of 72 national and/or regional-specific managed care agreements. Among them is our recently announced agreement with Health Insurance Plan of Greater New York ("HIP"). This agreement has resulted in an increase in patient flow at our Nassau, Suffolk and Queens patient care centers. The fourth quarter will be the first full quarter in which this agreement is in effect. We are also pleased to report that our recently initiated post-mastectomy care program is being well-received, with an increasing number of managed care organizations referring their patients to AOTI's outpatient care centers in the New York metropolitan area. Looking forward, we expect favorable revenue and earnings comparisons in the fourth quarter of this year."

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 33 patient care centers in California, New Mexico, New Jersey, New York, Virginia and West Virginia. -0-

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

                       Three Months Ended          Nine Months Ended
                         September 30,               September 30,

                      1995            1994        1995          1994

Sales              $3,417,000      $3,537,000   $10,176,000  $9,694,000

Operating Income      417,000         526,000     1,072,000   1,116,000

Income before provision
  for income taxes    323,000         432,000       788,000     870,000

Provision for
 income taxes         149,000         187,000       362,000     385,000

Net income         $  174,000      $  245,000    $  426,000  $  485,000

Earnings per
 common share           $ .04           $ .06         $ .10       $ .11

Shares used in
 earnings per
 common share
 computation        4,451,000       4,432,000     4,451,000   4,415,000
-0-

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]