American Electromedics Corp. Announces $3.4 Million Contract for Distribution of INJEX in Spain.

AMHERST, N.H.--(BW HealthWire)--Dec. 9, 1999--

AMERICAN ELECTROMEDICS CORP. (OTCBB:AMER) announced today that its partially-owned Germany-based subsidiary, Rosch GmbH Medizintechnik ("Rosch GmbH"), has signed a contract with Medical Devices S.L. to distribute the INJEX(TM) needle-free injection system. This agreement, for distribution to the diabetes market in Spain, is expected to generate revenues to Rosch GmbH of approximately $3.4 million over a 12-month period beginning March 2000.

Medical Devices S.L., based in Barcelona, Spain, is dedicated to the treatment of diabetes with a focus on the hospital, diabetes centers and home health care markets. Medical Devices S.L. is currently expanding their diabetes sales force in anticipation of the product launch scheduled for March 2000.

Andy Rosch, General Manager of Rosch GmbH, stated, "We are pleased to have Medical Devices S.L. as our newest partner in the distribution of our INJEX(TM) System. There is a significant European market potential for the product, and presently we have over $33 million of firm orders for the INJEX(TM) System. We expect a quick ramp-up in shipments as production capacity increases."

Mr. Lluis Bou, General Manager of Medical Devices S.L., commented, "We are very pleased to have entered into this agreement with Rosch GmbH. Using our own sales force and working with key distributors, we expect to introduce the INJEX(TM) System to the diabetes market very successfully as it is easy to use and has a highly competitive price compared to conventional needles."

Rosch GmbH, a partially-owned subsidiary based in Berlin, Germany (Additional information at: www.roeschnet.com), and Equidyne Systems, Inc., a wholly-owned subsidiary based in San Diego, California, are focused on becoming leaders in needle-free drug delivery systems for subcutaneous and intramuscular injections, with Rosch GmbH being responsible for the European market, and Equidyne being responsible for the U.S., Canada, South America and Asia markets. The INJEX(TM) Needle-Free Injector is a spring actuated system that propels a drug, with little or no pain, through the skin in a fraction of a second. INJEX(TM) administered drugs have very effective absorption rates compared to hypodermic needle injections. The System is user friendly, economical and eliminates needle stick and disposal problems.

The statements contained in this news release that are not purely historical are forward-looking statements that may involve risks and uncertainties. The Company's actual results may differ significantly from the results contained in the forward-looking statements. Factors that might cause such differences include, but are not limited to, the effect of losses and other factors on the Company's credit facilities, business and results of operations; the Company's limited capital resources and its ability to fulfill its existing obligations and ongoing capital needs; risks associated with excess or obsolete inventory; the potential impairment of assets; the Company's dependence on key customers and their financial viability; the impact of competition; and the Company's abilities to effectively manage growth. These and other risk factors are discussed in the Company's filings on Forms 8-K, 10-QSB and 10-KSB.