Eye Dynamics Reports Best Ever 4th Quarter & Year-End Financials.

Business Editors

TORRANCE, Calif.--(BUSINESS WIRE)--March 25, 2003

Eye Dynamics, Inc. (OTCBB:EYDY) achieved a 351% increase in its 4th quarter sales revenue in 2002 compared to the same period of 2001 ($760,000 vs. $216,000, respectively), and an overall increase of 259% for 2002 compared to 2001 ($1,808,000 vs. $698,000, respectively).

Also, for 2002, Eye Dynamics had a net income of $150,824 compared to a loss of $546,405 in 2001. This resulted in earnings per share in 2002 of $0.01 as opposed to a loss in 2001 of ($0.04) per share.

The increase in sales is largely due to success of the company's private label (MEDTRAK) program for Video ENG Systems, which accounted for 61% of its revenue for year 2002. Eye Dynamics' label ENG product sales also increased in the 4th quarter and for the year, even though the overall market for traditional ENG is still rather flat and not improving, as most sales are replacements for older equipment as opposed to new practices opening up.

Eye Dynamics' medical marketing success comes from the company's focus on developing new markets for the ENG products, such as mobile diagnostic services and specialty services for ENG equipment like MEDTRAK's balance and fall prevention program. MEDTRAK accounted for approximately 20% of the company's ENG sales in 2001, but in 2002 accounted for 61% of sales. MEDTRAK's success is due to aggressive marketing, opening up new market segments (Neurology market) and selling a complete package, including training.

Eye Dynamics' gross profit for the 4th quarter declined from 54% to 50% compared to the same period last year, and for the fiscal year 2002 declined to 52% from 57% in fiscal year 2001. The decline in gross profit percent is due to private label MEDTRAK products becoming a greater percent of Eye Dynamics' sales.

According to Charles Phillips, President of Eye Dynamics, "The attendant marketing and other expenses associated with distribution are greatly reduced in the case of our sales to MEDTRAK. So, the reduction in gross profit percent is to be expected, as the private label business becomes a greater percent of our overall business. However, total volume of revenues is more than 2.5 times the prior year, so gross profit dollars are up substantially and contributing to bottom line profits. Eye Dynamics' relationship with MEDTRAK is solid and both companies look forward to continued success of the existing and future product lines."

The Company is continuing to seek funding to fully launch its "Impairment/Performance" products, as well as potential acquisitions to bolster its medical product line. For the year, four EM/1 Eye Observation Systems were sold to the Department of Forensic Sciences, state of Alabama.

A demonstration of SafetyScope(TM) can be seen at Eye Dynamics' web site at: www.EyeDynamics.com

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 EM/1 Eye Observation System as well as SafetyScope(TM) are 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. They are designed for the "fitness-for-duty" screening of workers, do not require any bodily fluids like urine-based drug testing, and screens for use of not only illegal drugs, but also reactions to prescribed or over-the-counter medications and/or physiological states like fatigue.

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.