Arrhythmia Research Technology Announces Third Quarter Earnings - 2002.

Business Editors/Health/Medical Writers

FITCHBURG, Mass.--(BUSINESS WIRE)--Nov. 13, 2002

Arrhythmia Research Technology, Inc. ("ART") reported revenue of $1,630,427 and net income of $178,744 for the third quarter of 2002 compared to revenue of $1,637,050 and net income of $80,766 for the third quarter 2001.

For the nine months ended September 30, 2002, revenue was $5,377,761 and net income was $425,205 or $ .14 per share compared to revenue of $5,265,686 and net income of $217,470 or $ .07 per share for the nine months ended September 30, 2001. The improvement in net income for the period is attributed to a decrease in research and development spending, and higher manufacturing efficiencies.

                        Three Months Ended        Nine Months Ended
                         2002         2001         2002        2001

Revenue              $1,630,427   $1,637,050   $5,377,761   $5,265,686
Net income              178,744       80,766      425,205      217,470
Net income
 per share (dilutive)      $.06         $.03         $.14         $.07
Dilutive average
 number of
 shares outstanding   2,927,540    3,150,890    2,955,486    3,202,341

In the second quarter of 2002, the ART announced its intention to purchase certain assets of a company in the same line of business as Micron Products, Inc., the wholly owned subsidiary of ART. On July 22, 2002 the Company announced that the parties had discontinued negotiations of the acquisition. Legal costs of $111,000 were incurred in conjunction with the proposed asset purchase and have been expensed in the second and third quarter of 2002.

For the nine months ended September 30, 2002, the sales of Micron Products' standard ECG sensor products are 5% higher than in the same period of 2001. Micron has received notification from an existing customer that it has been chosen as the new supplier of the radio translucent ECG sensor, which will result in additional sales revenue beginning first quarter 2003.

Forward-looking statements made herein are based on current expectations of the Company that involve a number of risks and uncertainties and should not be considered as guarantees of future performance. These statements are made under the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward looking statements may be identified by the use of words such as "expect," "anticipate," "believe," "intend," "plans," "predict," or "will." The factors that could cause actual results to differ materially include: interruptions or cancellation of existing contracts, impact of competitive products and pricing, product demand and market acceptance, risks, the presence of competitors with greater financial resources than the Company, product development and commercialization risks and an inability to arrange additional debt or equity financing.