Austin Medical Technologies, Inc. Increases Distribution to Over 1,200 New Eye Centers and Announces Exclusive Agreement With WALCOTT Rx Products, Inc.

Business Editors/Health/Medical Writers

PLANO, Texas--(BUSINESS WIRE)--June 10, 2004

AUSTIN MEDICAL TECHNOLOGIES, Inc. (Pink Sheets:AMTK), announces an exclusive joint marketing and product sales partnership with WALCOTT Rx Products, Inc. WALCOTT Rx will be rolling out to its customer base, which consists of over 1,200 eye surgery centers, the complete line of surgical kits from Austin Medical.

Kurt Tarter, President & CEO, states, "We have positioned ourselves in a $2.1 Billion dollar market for custom sterile surgery trays and WALCOTT RX brings years of experience in successful market penetration into the community of Ophthalmology. The company expects to have under contract $2 to $3 million added annually to its sales over the next 3 years. WALCOTT RX has a strong reputation in the North East for delivering high quality products to eye surgeons and exemplary service. Austin Medical is pleased to be associated with such a high caliber company as WALCOTT Rx Products, Inc."

David Walcott, President of WALCOTT Rx Products Inc., states, "For over 16 years we have been focused on providing the best quality products and service to over 1,200 customers and in that effort, partnering with Austin Medical has allowed us to provide more value to our customer with the products Austin Medical provides."

About WALCOTT Rx Products, Inc.

WALCOTT Rx Products, Inc. is a pharmaceutical distributor with over 1,200 eye surgery centers as clients located in the North Eastern section of the U.S.A. WALCOTT Rx Products, Inc. has been in the Ophthalmic industry for over 16 years. It services eye surgery centers. http://www.walcottrxproducts.com.

About Austin Medical Technologies, Inc./eyeDirecti(TM) (Brand)

Austin Medical Technologies delivers "DIRECT" from the manufacturer to the Surgeon, the only technology based, "Single Source Supply Solution" for custom sterile surgery trays made up of 80% of all disposable surgical devices utilized in surgery. Currently the company has contracted with numerous eye surgery centers including the 2 largest eye surgery centers in the USA. The market for custom sterile surgery trays is a $2.1 Billion dollar market here in the USA.

Austin Medical is dedicated exclusively to the Ambulatory Surgery Center (ASC) market. Ambulatory Surgery Centers (ASC), also called outpatient surgery, and same-day surgery, refers to surgical procedures which are complex enough to require a dedicated operating room and specially trained staff, but do not require an overnight stay. According to 1996 U.S. government statistics, ambulatory surgery centers account for 31 million or 44% of the total surgeries performed in the United States. Five million surgeries were performed on eyes. New surgical techniques such as laser surgery allow procedures to be done more quickly and/or with less surgical trauma.

Under the brand name eyeDirecti, Austin Medical is initially focused on Ophthalmology owned and operated surgery centers which is the fastest growing segment of the ASC market, growing by 25% per annum, consisting of 2,500 practices with 15,000 surgeons performing over 5 million surgical procedures annually at a supply cost of $400 million per year. Austin Medical is positioned to capture $40 million (10%) of this $400 million market within the next 4 years. Visit our e-commerce site at http://www.eyedirecti.com.

Note: Any statements released by Austin Medical Technologies, Inc, or any of its affiliates that are forward- looking, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act. Editors and investors are cautioned that forward-looking statements invoke risk and uncertainties that may affect the Company's business prospects and performances. These include economic, competitive, governmental, technological and other factors discussed in the statements and in the Company's filings with the Securities and Exchange Commission.