Baltimore Therapeutic Equipment Company and Hanoun Medical, Inc. Sign Letter of Intent to Merge.

Business Editors/Health/Medical Writers

DOWNSVIEW, Ontario & GREENWOOD VILLAGE, Colo. & HANOVER, Md.--(BUSINESS WIRE)--Nov. 17, 2003--

Merger Expected to Create New Industry Leader in Providing Human

Performance Technologies, Physical Rehabilitation Solutions and

Functional Testing Services

Hanoun Medical, Inc., a provider of employer-based injury cost reduction programs and physical evaluation technologies, and Baltimore Therapeutic Equipment Company (BTE), a provider of technology solutions to the physical rehabilitation and therapy market, announced today the signing of a letter of intent to merge the two companies. The merger target date is January 2004.

Together, the new company will provide solutions for the employer/employee health care market. The suite of products and services offered will include physical demands assessments at the work place, employee selection testing programs, protocols for safely matching employees to jobs and comprehensive functional evaluation capabilities. Together, these products and services will greatly improve rehabilitation outcomes and drive a new level of performance and efficiency for the workers compensation market.

Thomas P. Rogan, Hanoun's chief executive officer, commented on the proposed merger: "Hanoun has been a pioneer in the employer and job-specific evaluation arena, while BTE has built a solid, long-standing reputation throughout the physical rehabilitation industry. By joining forces and capitalizing on our collective technologies and expertise, we will attain broader distribution for products and services as we strive to enhance capabilities to meet the evolving needs of employers, payors and healthcare providers worldwide."

Chuck Wetherington, chief executive officer, added: "This merger is the right fit for both Hanoun and BTE, and will enable each company to draw on the strengths of the other's business. We believe this combination will greatly benefit our customers, employees and shareholders as we augment our service offerings, create more opportunities for career growth and offer cost-effective solutions to the industry."

Hanoun Medical, founded in 1987 with offices in Toronto and the metro Denver area, is an international medical technology and employer services company specializing in the evaluation and assessment of human physical performance. The company assists employers in reducing costs associated with workplace injuries by providing integrated web-enabled software applications and patented digital medical technologies that enhance the delivery of healthcare services. For more information, please visit www.hanoun.com.

During its 24 years in business, BTE has become a leading provider of technology solutions to the physical rehabilitation and therapy market. The company's products have helped set industry standards in functional work simulation and physical rehabilitation equipment and software for markets ranging from industry to sports medicine to geriatrics. To learn more, visit www.bteco.com.