Eye Dynamics Continues to Report Record Sales and Profits.

Business Editors

TORRANCE, Calif.--(BUSINESS WIRE)--Aug. 6, 2003

Eye Dynamics (OTCBB:EYDY), today announced a 220% increase in revenue for the second quarter of 2003 compared to the same period a year ago. This is the fourth successive quarter that sales and profits have been rising at a record pace.

Profit for the second quarter was $100,992 as opposed to a loss of $24,651 in the second quarter of 2002. The second quarter profit was reduced by the California State income tax for 2002 that had to be expensed, as well as the accrual of state income taxes for 2003. The total of these state taxes was $36,000. Reason for the state income tax is that the State of California placed a moratorium on the use of `tax loss carryovers' for the years 2002 and 2003.

The increase in sales comes from the company's private label program for Video ENG Systems, and a strong increase in the Eye Dynamics label Video ENG products. Sales for the quarter were $688,018, which was 220% better than the same period of 2002.

Private label shipments accounted for 47% of ENG sales in the second quarter of 2003. In the same quarter of 2002 they accounted for 64% of sales. Their success is due to a strong marketing program that has opened up new market segments (Neurology market) and selling of a complete package, including training for a "Fall Prevention and Rehabilitation" program.

Eye Dynamics and its private label customer are currently negotiating a long-term exclusive manufacturing and distribution relationship plus the addition of several new models to be added to the product mix, which will be targeted at specific market segments.

We continue to press for investment for the Impairment Device that has been developed. Several avenues are being considered and the Law Enforcement models were shown recently at a national Drug Recognition Expert Conference sponsored by the International Association of Chiefs of Police. The products were favorably received.

"Increasing sales and holding expenses to a minimum is the goal of Eye Dynamics," states Charles Phillips, President. "This philosophy will yield increasing profits and ultimately increase shareholder value. Third quarter continues strong with excellent sales in July and going into August. The introduction of new models will also push the sales level further ahead."

About Eye Dynamics, Inc.

Eye Dynamics is in the business of producing and marketing patented proprietary products and other services for the institutional, medical and government markets. The company is a leader in the Video ENG medical product market, having invented the Video ENG system and brought it to market in 1994. SafetyScope, the company's latest product, is designed for the `fitness-for-duty' screening of workers. SafetyScope is simple to use, takes only 90 seconds and does not require any bodily fluids like urine-based drug testing. It is based on the manual methods of evaluating eye responses of an individual to detect neurological signs of impairment used by law enforcement throughout the United States.

To find out more about Eye Dynamics, Inc. (OTC:EYDY), visit our web site at www.EYEDYNAMICS.COM 

Safe Harbor for Forward-Looking Statements

This news release includes forward-looking statements that are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. While these statements are made to convey to the public the company's progress, business opportunities and growth prospects, readers are cautioned that such forward-looking statements represent management's opinion. Whereas management believes such representations to be true and accurate based on information and data available to the company at this time, actual results may differ materially from those described. The company's operations and business prospects are always subject to risk and uncertainties. Important factors that may cause actual results to differ are set forth in the company's periodic filings with the U.S. Securities and Exchange Commission.