Arrhythmia Research Technology Inc. Announces 2000 Fourth Quarter and Annual Results.

Business Editors & Medical/Biotechnology Writers

AUSTIN, Texas--(BUSINESS WIRE)--March 1, 2001

Arrhythmia Research Technology Inc. (AMEX:HRT) ("ART") reported revenues of $9,522,000 and net income of $620,000 for 2000.

The revenues for 2000 include a non-recurring payment of $1,000,000 to terminate a commission agreement with GE/Prucka reported in the second quarter of 2000. In 1999, ART reported revenue of $10,380,000 and net income of $425,000.

                                          Year Ended Dec. 31
                                       -----------------------
 (In 000's except per share amounts)      2000         1999
                                       ---------    ----------
Revenue                                $   9,522    $   10,380
Net income (loss)                      $     620    $      425
Net income (loss) per share            $     .19    $      .12
Weighted average shares                    3,333         3,488

ART reported revenues of $2,007,000 and a net loss of $148,000 for the fourth quarter of 2000 compared to $2,405,000 of revenues and net income of $53,000 for the fourth quarter of 1999.

                                            Fourth Quarter
                                       -----------------------
 (In 000's except per share amounts)      2000         1999
                                       ---------    ----------
Revenue                                $   2,007    $    2,405
Net income (loss)                      $    (148)   $       53
Net income (loss) per share            $    (.04)   $      .02
Weighted average shares                    3,228         3,488

The decrease in the fourth quarter revenue is primarily due to a drop in demand for metal snap sales. The loss in the fourth quarter reflects the lower sales volume, $106,000 of severance costs related to two executives of the Company and $90,000 of write-offs on assets replaced by Windows version of ART software.

Revenues for 2000 from the sales of Micron Products sensors and metal snaps decreased $1,192,000 or 13% compared to 1999. Sales in 1999 related to (Y2K) concerns were abnormally high for Micron, especially towards year-end. As a result, orders for sensors and snaps dropped in the first half of 2000 but have resumed to more typical order rates in the second half of 2000. During 2000, Micron learned its environmental investigation by the Attorney General's office of Massachusetts had concluded with no adverse actions. Legal expenses of approximately $120,000 were incurred in the first half of 2000 in connection with this investigation.

Excluding the $1,000,000 termination payment by GE/Prucka, revenues for 2000 that were derived from sales of ART products were $546,353 less than in 1999. During 2000, ART began demonstrating a new Predictor Windows based software with its patented signal averaging technology, which is also capable of ECG and stress testing. Until new marketing and distribution channels are established and, until more of ART's proprietary software is modified and re-introduced to the cardiology and electrophysiology fields in 2001, revenue will remain low for these ART products. The Company continues to make significant reductions in the sales and administrative costs associated with this Austin based business segment.

For the year 2000, income tax as a percent of income before taxes was 7%. The low tax expense reflects the high utilization of deferred tax deductions available for year 2000 and future periods that generate taxable income.

ART sells equipment used in the cardiovascular field for diagnosing and treating patients with irregular heartbeat and irregular electrical conduction patterns of the heart. Proprietary product lines include the 1200 EPX(tm), LP-Pac Q(tm), the PREDICTOR series, the Tri-Pac(tm) and Micron's ECG silver/silver chloride-plated sensors. The Arrhythmia Research Technology Inc. Web site is located at http://www.arthrt.com.

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. 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.