Eye Dynamics Inc. Reports Sales Rose 109 Percent in June 1998 Quarter.

TORRANCE, Calif.--(BUSINESS WIRE)--July 8, 1999--

Eye Dynamics Inc. (OTC BB:EYDY) Thursday announced that sales in the quarter ended June 30, 1999, were $173,248, an increase of 109 percent over the comparable quarter in the year-earlier period.

This performance brought sales for the first six months ended June 30, 1999, to $335,557, an increase of 64 percent over the similar period in 1998.

President Charles E. Phillips commented: "We are very pleased that Eye Dynamics' sales in the June 1999 quarter continued the strong growth pattern that carried over from 1998 into the first quarter of 1999, when sales rose 33 percent. In fact, sales became even stronger in the June 1999 quarter, by accelerating to a 109 percent increase.

Phillips continued: "Our sales strength in 1999 -- up 64 percent for the first half -- is in line with the company's sequential results since 1996, when sales rose 54 percent in 1997 and 56 percent in 1998. This robust demand over the past 10 quarters is due to several factors: -0-

1.   The video technology features of Eye Dynamics' House
     InfraRed/Video Electronystagmography (ENG) has boosted end-user
     acceptance and raised unit volume.

2.   Important marketing changes. These include, in 1997, the switch
     to our Special Instrument Dealer group, and, in 1998, both our
     improved commission structure and the appointment of a marketing
     manager, Mr. Charlie Anderson. His sales roots in the ENG medical
     equipment field go back several decades.

3.   The addition of a private label health-care customer in Arizona.

4.   In 1999, product upgrades. A second-generation vestibular testing
     goggle was introduced that is lighter, more compact and easier to
     use. And the Version 5.00 software includes over 20 new features
     and tests."

Phillips concluded: "We are gratified by this strong sales progress and resulting increase in market share in the ENG medical equipment market. We believe these robust demand forces will remain in place throughout this year and allow Eye Dynamics' sales to advance to at least $1 million in 1999, which would be both a record and a 42 percent increase for this year.

"The increased sales of ENG medical equipment allow us to further emphasize our efforts to firmly establish the EPS-100 Impairment Detection product.

"The EPS-100 has enormous potential, and we are continuing to sow seeds in government circles as to the benefits of our product over urine testing, namely, much lower cost per test than urine and the speed of testing (90 seconds) for the PASS or FAIL result."

Eye Dynamics is engaged in the design, development, manufacture and distribution of specialty medical equipment and related systems. These are used to measure and record certain human eye movements that are indicators of the presence of diseases, drugs or other conditions that impair the human oculomotor system.

In particular, the company's products deal with nystagmus, a condition of the central nervous and balance systems of the body, which is characterized by a rapid, involuntary oscillation of the eyeball.

Eye Dynamics produces two products, both proprietary in nature. The House InfraRed/Video ENG System, which the FDA has approved for marketing, is sold to the neurological and otological diagnostic medical markets. The EPS-100 is sold to the broader corporate/law enforcement and institutional markets for detection of impairment of performance of an individual, a market estimated to be $3 billion annually. -0-

                      COMPARATIVE SALES RESULTS

                                  1998          1999         % Change

First Quarter ending 3/31      $121,989      $162,309           33.1%
Second Quarter ending 6/30       82,755       173,248          109.4%

First Six Months               $204,744      $335,557           63.9%