American Dental Technologies Reports 1999 Results.

Business Editors

CORPUS CHRISTI, Texas--(BW HealthWire)--March 10, 2000

American Dental Technologies, Inc. (Nasdaq:ADLI) reported that revenues during the year ended December 31, 1999 decreased 12% to $25,034,527 compared to $28,284,720 for 1998. Pre-tax income for the year ended December 31, 1999 was $1,007,606 compared to $3,777,200 for 1998. Net income for the year ended December 31, 1999 was $391,606 or $0.05 per diluted share.

Prior to the fourth quarter of 1998, the Company recorded no income tax expense due to the utilization of net operating loss carryforwards that were previously reserved. Because of its continuing profitability, the Company reversed its previously reserved deferred tax asset valuation allowance in the fourth quarter ended December 31, 1998 which increased 1998 net income by $5,072,117. Conversely, during 1999, the Company recorded $616,000 of income tax expense (which represents a non-cash outlay). Management believes that comparing the pre-tax income for 1999 to pre-tax income for 1998 and prior years is a more accurate reflection of the trend of the Company's performance.

"The Company enjoyed increased North American sales of lasers and high speed curing lights and an increase in international sales," said Ben J. Gallant, President and CEO. "The decline in revenues for 1999 is attributable to the decline in air abrasion sales for the United States which management strongly believes resulted from a change of focus within its dealer network. I am also pleased to report that SG&A expenses returned to its range of historic levels in the second half of 1999 as management has actively reduced marketing costs so that they are more in line with current sales. The Company is actively engaged in the implementation of its new business plan. As recently reported, that plan involves the sale of products in the United States directly to the dentist through its own local sales and service locations in order to have greater control over its destiny. The Company ended its fiscal year in a strong financial position with $3.2 million in cash and a current ratio of 6.7:1 giving the Company the ability to implement its new business model."

Statements in this release concerning the Company's plans and business prospects are "forward looking statements" within the meaning of the Securities Exchange Act of 1934 and are subject to uncertainties. Such uncertainties include, without limitation, the possible failure to maintain its lines of credit, the potential for an extended decline in sales, the inability of revenues to offset additional costs associated with the new approach, the negative effects of competition on prices and sales volumes and the other risks and uncertainties set forth in the Company's reports filed with the Securities and Exchange Commission.

American Dental Technologies, Inc. headquartered in Corpus Christi, Texas, develops and manufactures advanced technologies for dentistry and markets them worldwide. It is listed on the Nasdaq National Market under the symbol ADLI. Its website is found at www.americandentaltech.com

Condensed consolidated statements of operations and balance sheets are attached.

                  American Dental Technologies, Inc.
            Condensed Consolidated Statements of Operations

                        Three Months Ended          Year Ended
                            December 31             December 31
                     -----------------------  -----------------------
                         1999        1998         1999        1998
                         ----        ----         ----        ----

Revenues             $ 7,472,841 $ 9,608,492  $25,034,527 $28,284,720
Cost of sales          3,900,004   4,382,325   12,778,664  12,877,318
                     ----------- -----------  ----------- -----------
Gross profit           3,572,837   5,226,167   12,255,863  15,407,402

Operating expenses     3,297,914   3,724,397   11,885,935  11,565,412
                     ----------- -----------  ----------- -----------
Income from operations   274,923   1,501,770      369,928   3,841,990

Other income (expense)   256,414    (117,490)     637,678     (64,790)
                     ----------- -----------  ----------- -----------
Income before
 income taxes            531,337   1,384,280    1,007,606   3,777,200
Income tax (benefit)
 expense                 255,388  (5,072,117)     616,000  (5,072,117)
                     ----------- -----------  ----------- -----------
Net income           $   275,949 $ 6,456,397  $   391,606 $ 8,849,317
                     ----------- -----------  ----------- -----------
                     ----------- -----------  ----------- -----------
Earnings per share
 - diluted           $      0.04 $      0.87  $      0.05 $      1.20
                     ----------- -----------  ----------- -----------
                     ----------- -----------  ----------- -----------
Weighted average number
 of shares - diluted   7,410,414   7,445,761    7,424,433   7,374,994



American Dental Technologies, Inc.
Condensed Consolidated Balance Sheets

                                             12-31-99     12-31-98
                                             --------     --------
Assets
Current assets:
         Cash                              $ 3,230,647  $ 1,409,404
         Accounts receivable                 4,716,252    5,567,108
         Inventories                         9,938,205   11,225,208
            Deferred taxes                     870,000    1,857,143
         Other current assets                1,244,903    1,219,633
                                           -----------  -----------
Total current assets                        20,000,007   21,278,496
Deferred taxes                               3,874,000    3,445,476
Other                                          100,000      100,000
Property and equipment, net                  2,447,906    2,462,747
Intangible assets, net                      13,925,900   14,568,466
                                           -----------  -----------
Total assets                               $40,347,813  $41,855,185
                                           -----------  -----------
                                           -----------  -----------
Liabilities and Stockholders Equity
Current liabilities:
         Accounts payable                  $ 2,311,903  $ 2,877,517
         Accrued liabilities                   644,249      897,030
                                           -----------  -----------
Total current liabilities                    2,956,152    3,774,547
Debt                                         5,150,000    5,950,000
Other non-current liabilities                  223,278      321,336
Stockholders equity                         32,018,383   31,809,302
                                           -----------  -----------
Total liabilities and stockholders equity  $40,347,813  $41,855,185
                                           -----------  -----------
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