Mr. Osvaldo Iadarola reports

AUDIOTECH ANNOUNCES PROFITABLE FIRST QUARTER

Audiotech Healthcare Corp. has posted its first quarter 2002 results. The cost-cutting measures undertaken during the first quarter of fiscal 2002 have had a considerable positive impact on profitability. The corporation reported record revenues of $720,229 and a small operating profit for the quarter. Revenues in Canada were $481,312, up slightly from the $479,805 reported for the corresponding quarter a year earlier. U.S. revenues reached $238,917 as compared with $232,660 in the first quarter of fiscal 2001.

Geographic breakdown of revenues in Canadian dollars (three months ended Dec. 31):

           2001             2000


Canada   $481,312        $479,805

U.S.      238,917         232,660

Total     720,229         712,465

As a result of improved cost efficiencies, cost of sales as a percentage of revenues declined significantly, resulting in an increase in gross margins to 64.3 per cent from only 57.1 per cent during the same quarter last year. General and administrative expenses declined from $519,542 in the first quarter of fiscal 2001 to $459,417 during the first quarter of fiscal 2002. Major cost reductions were achieved in a number of categories including corporate development (includes start-up costs associated with e-commerce operations in fiscal 2001), professional and filing fees, travel and wages. These cost reductions were accomplished without affecting service levels at our clinics.

As a result of the first quarter revenue growth, improved operating margins, and reduced general and administrative expenses, Audiotech reported a net profit of $3,933 or 0.03 cent per share for the quarter ended Dec. 31, 2001, compared with a loss of $125,767 or one cent per share during the first quarter of 2001. Audiotech achieved positive operating cash flow from operations of $28,399 for the quarter, an improvement of $111,676 as compared with same period a year earlier.

Management is confident that the impact of further cost-reduction initiatives will be realized during the second quarter.

During the quarter ended Dec. 31, 2001, the corporation raised $228,373 in new borrowings and repaid a total of $134,728 in existing debt, resulting in a net increase in debt financing of $93,645. An additional $9,000 was raised through the issuance of common shares upon the exercise of stock options. No material capital purchases were made during the quarter. As a result of the new financing, the company's working capital position at the end of the quarter improved significantly as compared with the end of fiscal 2001 (Sept. 30, 2001). Working capital stood at $156,688 at Dec. 31, 2001, up from a deficit of $45,628 only three months earlier. The corporation anticipates the completion of additional equity or debt financing or refinancing of certain shorter-term debt in fiscal 2002 to further bolster working capital.