Compex Technologies Reports Fiscal 2003 Third Quarter Results.

Business Editors

NEW BRIGHTON, Minn.--(BUSINESS WIRE)--May 13, 2003

Compex Technologies, Inc. (Nasdaq:CMPX) today reported results of operations for the fiscal third quarter ended March 31, 2003.

Consolidated net sales and rental revenue for the third quarter was $19.1 million, an increase of 6% over the prior year's third quarter revenue of $18.1 million. U.S. revenue was $12.1 million, up 3% from $11.8 million in the same period last year. International revenue was $7.0 million compared with $6.3 million in the prior year's third quarter.

The gross profit margin for the quarter was 70.2%, compared with 68.0% last year. Selling, general and administrative expenses were $10.6 million, or 55.6% of revenue, compared with $9.9 million in the fiscal 2002 quarter.

Net income was $1.4 million, or $0.12 per diluted share, compared with $1.0 million, or $0.09 per diluted share in the same period last year.

For the nine months ended March 31, 2003, net revenue was $55.6 million, an increase of 6% compared with total revenue of $52.4 million for the nine months ended March 31, 2002. Net income for the first nine months of fiscal 2003 was $3.3 million, or $0.30 per diluted share, compared with $3.6 million, or $0.32 per diluted share in the comparable prior-year period.

"We are extremely pleased with our performance during the quarter," commented Dan W. Gladney, President and CEO. "This was the third largest quarterly net income figure in company history and the second highest EPS number. Our gross margin exceeded 70% and we expect to reach our earnings per share estimate of $.45 per share for the full fiscal year."

Compex Technologies also announced today it has entered into a non-binding letter of intent to acquire substantially all of the assets of the U.S. division of Neurotech(R) from Bio Medical Research Ltd. (BMR), a company formed under the laws of Ireland. Although completion of the transaction is subject to a number of conditions, Compex indicated that it is in the final stages of negotiation for the acquisition.

"The proposed agreement with BMR will be different from our two previous agreements with them," stated Mr. Gladney, "in that while those were licensing agreements for consumer products, this will be an asset purchase of products for the medical market. Neurotech is a respected name in electrical muscle stimulation and this acquisition will allow us to acquire a sales force and increase our presence in several areas throughout the country."

Compex Technologies has scheduled an investor conference call at 1:00 p.m. Eastern Time today to discuss these developments. To participate in the live call, please dial [phone] and reference Conference ID: Compex. International callers please dial [phone] and use the same Conference ID. A telephone replay will be available until 11:00 p.m. Eastern Time on May 31st by dialing [phone] domestically and [phone] internationally. Investors may also find investor information, including information about how to access replays of the conference call, at the Compex Technologies website at www.compextechnologies.com under the caption "About Us - Investor Relations."

Compex Technologies, Inc. is a leading designer, manufacturer and provider of electromedical products used for pain management, rehabilitation and sports training in clinical, home health care, sports and occupational medicine settings.

Cautionary Statement: All statements other than historical facts included in this release regarding future operations, and particularly on the outlook for 2003, are subject to the risks inherent in predictions and "forward looking statements." These statements are based on the beliefs and assumptions of management of Compex Technologies and on information currently available to management. Nevertheless, these forward-looking statements should not be construed as guarantees of future performance. They involve risks, uncertainties, and assumptions identified in Compex Technologies filings with the SEC, including:

-- The increasing reliance on results of international

operations;

-- The effect of fluctuating exchange rates on international

results;

-- Compex Technologies substantial balances of third-party

billing business and resulting accounts receivable and the

sensitivity of its results to the accuracy of its reserve for

uncollectible receivables;

-- Changes in, and Compex Technologies compliance with,

regulation and industry practice that affects the rates at

which its products are reimbursed, the way it manufactures its

products, and the documentation which it submits for

reimbursement;

Other factors that affect the industry in which Compex Technologies functions, including negative publicity about electro-medical stimulation products for medical and fitness applications, and world events that affect the economies of the countries in which its products are sold.

              COMPEX TECHNOLOGIES, INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF OPERATIONS


                      Three Months Ended         Nine Months Ended
                           March 31                   March 31
                   ------------------------- -------------------------
                       2002         2003         2002         2003
                   ------------ ------------ ------------ ------------
Net sales and
 rental revenue    $18,074,316  $19,143,348  $52,404,537  $55,616,168

Cost of sales and
 rentals             5,785,968    5,705,660   17,224,675   16,930,342
                   ------------ ------------ ------------ ------------
     Gross profit   12,288,348   13,437,688   35,179,862   38,685,826

   Operating
    expenses:
    Selling, general
     and
     administrative  9,901,767   10,647,803   26,831,157   31,358,340
    Research and
     development       473,381      572,396    1,575,644    1,613,972
                   ------------ ------------ ------------ ------------
       Total
        operating
        expenses    10,375,148   11,220,199   28,406,801   32,972,312
                   ------------ ------------ ------------ ------------
    Income from
     operations      1,913,200    2,217,489    6,773,061    5,713,514


Other income
 (expense):
   Interest expense   (144,380)    (102,375)   (559,580)     (316,490)
   Other                 3,911       34,328      14,237        77,677
                   ------------ ------------ ----------- -------------

      Income before
       income taxes  1,772,731    2,149,442   6,227,718     5,474,701


Income tax
 provision             744,000      794,000   2,616,000     2,190,000
                   ------------ ------------ ----------- -------------
     Net income     $1,028,731   $1,355,442  $3,611,718    $3,284,701
                   ============ ============ =========== =============

Net income per
 common and
 common equivalent
 share

     Basic               $0.09        $0.12       $0.33         $0.30
                   ============ ============ =========== =============
     Diluted             $0.09        $0.12       $0.32         $0.30
                   ============ ============ =========== =============

Weighted average
 number of shares
 outstanding

      Basic         10,907,755   10,934,858  10,849,310    10,945,773
                   ============ ============ =========== =============
      Diluted       11,307,273   10,973,212  11,189,131    11,027,183
                   ============ ============ =========== =============




              COMPEX TECHNOLOGIES, INC. AND SUBSIDIARIES
                      CONSOLIDATED BALANCE SHEETS


                                               June 30,     March 31,
                                                 2002         2003
                                             ------------ ------------


                   ASSETS
                   ------
Current Assets:
 Cash and cash equivalents                    $2,086,650   $3,619,613
 Receivables, less reserve of $12,891,864
     and $12,489,316                          23,629,117   23,821,832
 Inventories -
   Raw materials                               2,368,203    1,139,799
   Work in process                                80,265         ----
   Finished goods                              6,522,790    9,281,676
 Deferred tax assets                           4,655,631    4,655,631
 Prepaid expenses                              1,641,378    1,849,513
                                             ------------ ------------
       Total current assets                   40,984,034   44,368,064

 Property, plant and equipment, net            4,679,778    4,526,525
 Goodwill, net                                 9,833,090    9,833,090
 Other intangible assets, net                  1,150,652      950,388
 Deferred tax assets                             702,567      763,560
 Other assets                                    127,615      103,934
                                             ------------ ------------
                                             $57,477,736  $60,545,561
                                             ============ ============
    LIABILITIES AND STOCKHOLDERS' EQUITY
    ------------------------------------

Current Liabilities:
 Current maturities of long-term debt         $2,520,775   $2,546,545
 Note payable                                       ----    2,800,000
 Accounts payable                              3,312,767    2,733,428
 Accrued liabilities -
   Payroll                                       607,409      506,563
   Commissions                                   437,530      397,182
   Income taxes                                2,670,766    2,372,135
   Other                                       5,656,988    4,652,581
                                             ------------ ------------
       Total current liabilities              15,206,235   16,008,434

Long-Term Liabilities:
 Long-term debt                                6,455,209    4,525,839
 Deferred tax liabilities                        535,102      587,904
                                             ------------ ------------
       Total liabilities                      22,196,546   21,122,177

Stockholders' Equity:
 Common stock, $.10 par value;  30,000,000
  shares authorized;
  issued and outstanding 10,922,618 and
  10,943,469 shares,
  respectively                                 1,092,262    1,094,347
 Preferred stock, no par value; 5,000,000
  shares authorized; none
  issued and outstanding                            ----         ----
 Additional paid-in capital                   21,564,096   21,635,447
 Unearned compensation on restricted stock       (77,813)        ----
 Accumulated other non-owner changes in
  equity                                         735,564    1,441,808
 Retained earnings                            11,967,081   15,251,782
                                             ------------ ------------
       Total stockholders' equity             35,281,190   39,423,384
                                             ------------ ------------
                                             $57,477,736  $60,545,561
                                             ============ ============