HEALTHCARE TECH REPORTS 2ND QTR REVENUES OF 2.8 MILLION.

Healthcare Technologies, Ltd. (NASDAQ: HCTL), Petach-Tikva, Israel, has announced unaudited results for the second quarter and six months ended June 30, 2004.

Revenues for the first six months of 2004 were $5.79 million, compared to $6.99 million for the first six months of 2003. The decrease in revenues is both due to the fact that the company no longer consolidates Savyon's financials, resulting in a decrease of $840 thousand, and due to a decrease of approximately $360 thousand in the demand for products by research institutes. The gross profit for the first half of the year was $2.16 million versus $2.39 million for the same period in 2003, representing an increase in the percentage of the gross profit from 34% to 37%. The net profit for such period was $144 thousands, versus a net loss of $(124) thousands, for the first half of 2003.

Revenues for the second quarter of 2004 were $2.8 million, as compared to $3.5 million for the corresponding quarter last year. Second quarter gross profit were $0.9 million, as compared to $1.2 million in the second quarter of 2003. The net loss for the second quarter was $84 thousands, compared to a net loss of $17 thousands, for the second quarter of last year.

Shareholders' equity on June 30, 2004 was $2.51 million, compared to US$2.39 million on December 31, 2003. Current assets net of current liabilities at the end of the period were $3.3 million, compared to $2.8 million on December 31, 2003.

About Healthcare Technologies

Healthcare Technologies Ltd. through it subsidiaries Savyon Diagnostics Ltd., Gamidor Diagnostics (1984) Ltd. and Danyel Biotech Ltd., specializes in development, manufacturing and marketing of clinical diagnostic test kits and provides services and tools to diagnostic and biotech research professionals in laboratory and point of care sites worldwide.