Eye Dynamics Signs Letter of Agreement With HRL Laboratories LLC.

Business Editors

TORRANCE, Calif.--(BUSINESS WIRE)--Aug. 21, 2001

Eye Dynamics Inc. (OTCBB:EYDY) -- www.EyeDynamics.com -- announced today that it has signed a Letter of Agreement with HRL Laboratories LLC (Malibu, Calif., www.HRL.com) to assist in the enhanced engineering requirements for its SafetyScope(TM) product.

SafetyScope(TM) is a digital system that screens workers for signs of impairment using techniques established by law enforcement's manual roadside evaluation of drivers "under the influence." This is a major advance from current urine-based drug testing techniques that are invasive, demeaning, limited in scope, and costly.

Urine testing is currently a $1.5 billion per year business domestically, and that figure does not include the cost of impairment in the workplace, which is documented to be several hundred billion dollars resulting from loss of life, property, productivity, etc. A government study has shown SafetyScope(TM) to be three times more accurate than any other evaluated impairment screening device.

"HRL's expertise in sophisticated image processing algorithms will help to ensure that Eye Dynamics' SafetyScope product is the right product for the global safety market," said Eye Dynamics' president, Charles Phillips. "The commitment being shown by HRL enhances Eye Dynamics' belief that SafetyScope(TM) represents a solution to the growing dissatisfaction with current drug testing methods and a way to enhance safety in the workplace."

"HRL looks forward to helping Eye Dynamics improve their SafetyScope(TM) product. We believe that this product has significant opportunity to improve worker safety," said Dr. Art Chester, president of HRL.

HRL conducts applied research in the electronics and information sciences and creates new products and services for space, telecommunications, defense and automotive applications. It is jointly and equally owned by Boeing, Raytheon, and General Motors, and provides research and development services for all three.

These parent companies look to HRL for scientific breakthroughs and advanced technology to sustain their global competitive advantages. HRL is poised at the frontier of the electronics and information technology industries.

For its contribution, HRL will take an equity position in Eye Dynamics of up to 800,000 common shares, and will have a non-voting seat on Eye Dynamics' board of directors.

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. SafetyScope, the company's latest product, is designed for the "fitness-for-duty" screening of workers.

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.