Biotel revenues up 25%

16 February 2005

Minneapolis, USA.  Biotel Inc. has announced revenues for the second quarter ended December 31, 2004 were up 24.8% to $2,596,000 versus revenues of $2,080,000 for the quarter ended December 31, 2003. Net earnings for the quarter ended December 31, 2004 were $93,000 compared to $110,000 for the quarter ended December 31, 2003. Revenues and net income for the six months ended December 31, 2004 were $5,087,000 and $226,000, respectively, versus revenues and net income of $4,426,000 and $457,000, respectively, for the six months ended December 31, 2003.

Sales to medical corporations increased 22.5% to $4,336,000 for the six months at December 31, 2004 compared to $3,539,000 for the corresponding period in 2003. Biotel provides medical devices and services meeting needs of medical corporations seeking to outsource research, development and manufacturing capabilities. Biotel President and CEO Steve Springrose said "Biotel's traditional OEM equipment revenues grew briskly in the second quarter just ended, particularly in our cardiology product lines as customers seek cost effective alternatives to internal development. The success of Biotel has resulted in the payment of income taxes beginning in the current fiscal year, and the second quarter pre-tax income was up 31% to $147,000 compared to $112,000. Biotel is pleased it could improve pre-tax income while concurrently investing significantly in its new Agility Centralized Research Services. The Agility enterprise, which initiated sales activity in the summer, has been contracting with significant corporate partners to supply round the clock ECG services."

Braemar and Carolina Medical design, develop, and manufacture completed, tested medical devices to customers' OEM specifications. Braemar President Harry Strandquist said, "First half results have been very strong for Braemar, Inc. across all product lines. Recent development programs, organizational enhancements, and enhanced OEM partnerships are driving revenue and earnings growth at Braemar."

Agility President Dan Pawlik said, "In January, 2005, Agility was certified as 21 CFR 11 compliant by Regulatory/Clinical Consultants, Inc. ("RxCCI"), a leading contract research organization ("CRO"). This certification provides independent validation of Agility as a capable and competent provider in the ECG research marketplace."

Biotel Inc. is comprised of four business units, all of which are wholly- owned subsidiaries. Three of the business units, Braemar, Inc., Carolina Medical, Inc. and Agility Centralized Research Services, Inc. sell medical devices, technology and research services to medical companies. They design, manufacture, and test 24- and 48-hour Holter recorders, 30-day ECG event recorders, tissue extraction components, and flow control devices; provide 24/7 clinical ECG research services and internet technologies; and develop and test other custom medical devices. These subsidiaries form a base of products and services which Biotel believes are attractive to medical device and pharmaceutical companies, allowing accelerated and improved research, development, testing, and manufacturing operations. Advanced Biosensor Inc., the fourth business unit, sells Holter diagnostic cardiology software and systems to end users in hospitals and clinics.

                       3 months ended        3 months ended         %
                      December 31, 2004     December 31, 2003     Change

  Revenues                $2,596,000            $2,080,000        +24.8%
  Net Income                 $93,000              $110,000        (15.4%)
  Earnings Per Share
             Basic             $0.04                 $0.04
             Diluted           $0.03                 $0.04

                       6 months ended        6 months ended         %
                      December 31, 2004     December 31, 2003     Change

  Revenues                $5,087,000            $4,426,000        +14.9%
  Net Income                $226,000              $457,000        (50.5%)
  Earnings Per Share
             Basic             $0.09                 $0.18
             Diluted           $0.08                 $0.18

  For further information, contact:

  Judy Naus, +1 952-890-5135

This release was issued through eReleases(TM). For more information, visit .

Source: Biotel Inc.

CONTACT: Judy Naus of Biotel Inc., +1-952-890-5135,



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