HealthTronics Appoints Interim President & CEO; Company to Engage Investment Bank to Evaluate Offer to Purchase Specialty Vehicle Division; Provides 2006 Financial Guidance.

AUSTIN, Texas -- HealthTronics, Inc.:

Management Appointments

HealthTronics, Inc. (NASDAQ: HTRN) today announced that its Board of Directors appointed John Q. Barnidge, Senior Vice President and CFO, as interim President and CEO of the Company. A search for a permanent President and CEO is ongoing.

In other management changes, James Whittenburg, Senior Vice President - Development and General Counsel, was appointed division President - AK Specialty Vehicles, and Christopher B. Schneider, President of Medical Device Sales & Services, has assumed the additional role of COO for the Urology Division.

Chairman of the Board Dr. Argil Wheelock, commented, "We are pleased to have this management team in place and are confident in their abilities to operate and grow the business."

Strategic Developments

Mr. Barnidge stated, "We plan to engage outside investment banking counsel to assist in evaluating an existing offer to purchase our Specialty Vehicle division, and to help the Company identify additional investment opportunities in the healthcare sector. The 2006 guidance does not assume a sale of the Specialty Vehicle division, and incorporates a full year of operations of the segment. We look forward to reporting on our corporate developments."

2006 Financial Guidance

For the fiscal year ending December 31, 2006, the Company expects to report earnings of $0.52 - $0.55 per diluted share. This compares to projected 2005 earnings of $0.46 - $0.48 per diluted share, after giving effect to the impact of Hurricanes Katrina and Rita, redemption premiums and loan fees associated with the early extinguishment of debt, and the severance payments associated with a former officer and director. Top-line revenues are projected to increase by approximately 11-12% to $297-$300 million in 2006.

Mr. Barnidge commented, "I am pleased to be leading HealthTronics at this important time in the Company's development. In 2006, we expect to realize the benefits of several new business initiatives that were established during 2005. We will launch our anatomical pathology lab in the first quarter and expect it to be a positive contributor to earnings by the latter part of 2006. We are also optimistic about the prospective sales of our new UroVantage(R) and MultiVantage(R) patient treatment tables. Additionally, we are projecting continued, strong growth in our prostate therapies services treating both benign prostatic hyperplasia and cancer."

Mr. Barnidge added, "In 2006 we will continue to underwrite our efforts to obtain FDA approval for the emerging technology known as High Intensity Focused Ultrasound ("HIFU"), a treatment for cancer of the prostate. We expect to incur approximately $1.5 million in development expenses versus $200,000 in 2005. This cancer therapy addresses an enormous market and, as previously stated, there are over 7,000 successful clinical procedures on record in Europe for this technology. In the U.S. alone, there are approximately 35 million males in the so-called "Baby-Boom" generation who are not yet 60 years old. Our goal is to begin clinical trials in early 2006 and obtain FDA approval in 2008-2009. HealthTronics will continue to explore opportunities to expand the Company's products and services in this area."

Mr. Barnidge concluded, "Clearly, 2006 will be a year of transition for the Company. We will be well positioned to take advantage of these exciting opportunities in the new markets and business lines currently being developed."

About HealthTronics, Inc.

HealthTronics provides healthcare services and manufactures medical devices, primarily to the urology community, as well as manufacturing specialty vehicles used for the transport of high technology medical and broadcast & communications equipment. For more information, visit www.healthtronics.com.

Statements by the Company's management during the conference call announced in this press release that are not strictly historical, including statements regarding plans, objective and future financial performance, are "forward-looking" statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Although HealthTronics believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that the expectations will prove to be correct. Factors that could cause actual results to differ materially from HealthTronics' expectations include, among others, the existence of demand for and acceptance of HealthTronics' services, the integration of Prime's and HealthTronics' businesses, regulatory approvals, economic conditions, the impact of competition and pricing, financing efforts and other factors described from time to time in HealthTronics' periodic filings with the Securities and Exchange Commission.