American Electromedics announces record results of operations for third quarter of fiscal 1996.

AMHERST, N.H.--(BUSINESS WIRE)--May 21, 1996--American Electromedics Corp. (OTC: AECO), a leader in developing products which eliminate the anxiety of children in the medical setting reported today record financial results of operations for the third quarter and nine month periods ended April 27, 1996.

Net sales for the three month period ended April 27, 1996 were $1,066,000 compared to $590,000 for the same period in the prior year. The 81 percent increase in net sales for the quarter is primarily a result of significant shipments of the new Race Car Tympanometer which was introduced in the second quarter. Additionally, net sales increased as a result of continued market penetration of our other product lines, including the Pilot Audiometer, introduced in 1995. The company's products are sold worldwide in over 33 countries and are currently translated into 8 different languages. We are aggressively selling our products throughout the European Community using Rosch GmbH Medizintechnik, our fifty percent (50%) owned medical products distribution company based in Berlin, Germany.

Net income for the three month period ended April 27, 1996 was $201,000, or $.02 per share (12,603,939 average shares outstanding), compared to $22,000, or $.00 per share (9,505,000 average shares outstanding), for the same period in the prior year. Net income increased eight-fold for the third quarter ended April 27, 1996 when compared to the same period in the prior year as a result of a combination of higher sales and a 13 percent increase in gross profit margins.

Net sales for the nine months ended April 27, 1996 were $2,573,000 compared to $1,710,000 for the same period in the prior year. Net income for the nine months ended April 27, 1996 was $425,000, or $.03 per share (12,358,293 average shares outstanding), compared to $156,000, or $.02 per share (9,297,000 average shares outstanding), for the same period in the prior year.

Noel A. Wren, president and chief executive officer, said, "We are pleased to announce another very successful quarter with record sales and profits and expect this trend to continue. We are executing our plan for rapid growth and profitability by continually introducing additional products in the audiometric field and by expanding into businesses outside of hearing related products. Asthma management systems for children, vision screening and elecro-surgical devices are three of the product areas the company has targeted for future growth. We remain committed to building additional value for our stockholders."

American Electromedics Corp. manufactures and markets Tympanometers which detect middle ear diseases and Audiometers which are used in hearing screening. The company's goal is to create, acquire and develop products and services which serve to eliminate anxiety of children in the medical setting. These new products and services provide solutions to current healthcare needs. -0-

                       AMERICAN ELECTROMEDICS CORP.
                      CONDENSED FINANCIAL STATEMENTS
                FOR THE THREE AND NINE MONTH PERIODS ENDED

                        Three Months Ended        Nine Months Ended
                      April 27,    April 29,    April 27,    April 29,
                        1996         1995         1996         1995

Net sales            $1,066,000   $  590,000   $2,573,000   $1,710,000

Gross profit            547,000      268,000    1,235,000      724,000

Net income              201,000       22,000      425,000      156,000

Net income per
 share                    $ .02        $ .00        $ .03        $ .02

Weighted average
 shares outstanding  12,603,939    9,505,000   12,358,293    9,297,000

CONTACT: American Electromedics Corp.

Michael T. Pieniazek, 603/880-6300