California Passes Legislation to Require More Safety Systems for Heathcare Workers Exposed to Needles.

AMHERST, N.H.--(BW HealthWire)--Dec. 18, 1998--AMERICAN ELECTROMEDICS CORPORATION (OTCBB:AMER), announced today that the state of California approved Assembly Bill No. 1208, (Migden). The bill is intended to deal with the problems of needle-stick injuries to health care workers and exposure to various infectious materials such as dirty needles. The new regulations are to be published by January 15, 1999 and become effective no later than August 1, 1999.

A recent series of articles in the San Francisco Chronicle raised questions about the safety of health care workers and the ability to limit exposures through the use of needless systems and syringes with engineered sharps-injury protection.

The bill will require OSHA and the Department of Health Services to jointly compile a list of "Needleless systems which shall be available to assist employers of health care workers to comply with the requirements of the new standard."

American Electromedics Corp's wholly owned subsidiary, Equidyne Systems, Inc. of San Diego, CA., manufactures and markets INJEX+, a "needleless medication injection system" which replaces the need for a needle syringe in cases where medications are delivered subcutaneously. Equidyne Systems is receiving a tremendous response to INJEX+ and expects the passage of this new legislation will further boost the company's growth during 1999.

In late November, American Electromedic's Berlin-based wholly owned subsidiary, Rosch GmbH, Medzintechnik ("Rosch"), was interviewed on national news television in Germany and also interviewed on a major television talk show regarding the Equidyne needleless system and how it will help reduce contagious disease as well as pain and suffering. The response has been overwhelming and Rosch has received hundreds of inquiries regarding the system. As a result, Rosch has placed an order with Equidyne for 5,000 INJEX+ Injector Systems to be delivered concurrently with the issuance of the CE mark in Europe. Equidyne is in the process of applying for a CE mark at this time.

Commenting on the legislation, Lawrence A. Petersen, President of Equidyne, stated, "The trend toward replacing the old technology with much improved "Needle-free" technology is spreading rapidly in both the U.S. and worldwide. With rising concerns about the spread of highly contagious diseases due to contaminated needles and infection of health system workers, both social and political pressures are beginning to take effect to mandate a change to safer injection systems. The Equidyne INJEX+ "needle-free" drug injection technology is one of the newest products that could make a major impact in this area."

ABOUT EQUIDYNE SYSTEMS, INC.

Equidyne Systems, Inc., based in San Diego, CA., is a wholly owned subsidiary of American Electromedics, Inc. The Company is focused on becoming a leader in neddle-free drug delivery technology for subcoetaneous and intramuscular injections. Equidyne's INJEX+ Needleless Injector is a spring actuated system that propels a drug into and through a skin pore in less than a half of second and without pain. Drugs have increased absorption rates as compared to hypodermic needle injections. The Company has received FDA 510(k) market clearance for its product in the U.S. and is currently pursuing ISO 9001 and a CE Mark classification to enter the European Union and Pacific Asia markets. The Company has recently signed separate distribution agreements in Japan, Germany and Mexico, which resulted in combined orders for approximately 10,000 INJEX+ needle-free drug delivery systems. The company expects to complete delivery of all of these orders during the first quarter of 1999.

The statements contained in this news release that are not purely historical are forward-looking statements that may involve risks and uncertainties. The Company's actual results may differ significantly from the results contained in the forward-looking statements. Factors that might cause such differences include, but are not limited to, the effect of losses and other factors on the Company's credit facilities, business and results of operations; the Company's limited capital resources and its ability to fulfill its existing obligations and ongoing capital needs; risks associated with excess or obsolete inventory; the potential impairment of assets; the Company's dependence on key customers and their financial viability; the impact of competition; and the Company's abilities to effectively manage growth. These and other risk factors are discussed in the Company's filing on Forms 8-K, 10-QSB and 10-KSB.