HDII Hypertension Diagnositc Inc (CE)

Hypertension Diagnostics, Inc. (OTCBB: HDII), today announced audited financial results for the fiscal year ended June 30, 2008. Revenue for fiscal year 2008 totaled $554,454 compared to $1,878,840 in the prior year ended June 30, 2007, which represents a 70.5% decrease. The Company incurred a net loss of $703,837 for fiscal year 2008 or $(.02) per share, compared with a net loss of $504,011 for fiscal year 2007, or $(.01) per share. Included in the net loss for fiscal year 2008 are total non-cash charges (expenses associated mainly with stock compensation, depreciation, stock options) of $187,078. The Company reported a cash balance on June 30, 2008 of $1,081,868. Fourth quarter revenue of $159,176, for fiscal year 2008 compared to $438,481 for fiscal year 2007, represented a 63.7% decrease. Revenue for the fourth quarter of fiscal year 2008 increased by 54.1% compared with $103,264 for the third quarter of fiscal year 2008. �The decline in quarterly revenues for the current fiscal year is due to a change we have made in our selling strategy,� said Mark Schwartz, Chairman and CEO. �While the Company has recently identified a few regional distribution partners who have begun selling the CVProfilor, we continue our search for a distribution partner with an established national sales force or national distribution network serving the primary care market. Our objective is to integrate the CVProfilor product into the partner�s existing cardiovascular disease product platform. Although no assurances can be given that the Company will identify a suitable partner or that the Company will consummate mutually satisfactory arrangements with a partner, we believe that this is the best strategy for broadening distribution and increasing sales of the CVProfilor.� Forward-looking statements in this press release are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company wishes to caution readers not to place undue reliance on any forward-looking statements and to recognize that the statements are not a prediction of actual future results. Actual results could differ materially from those presented and anticipated in the forward-looking statements due to the risks and uncertainties set forth in the Company�s 2008 Annual Report on Form 10-KSB, and subsequent Quarterly Reports on Form 10-QSB, all of which were filed with the U.S. Securities and Exchange Commission, as well as others not now anticipated. Hypertension Diagnostics, Inc. Summary Financial Data � Statements of Operations � Three Months Ended � Twelve Months Ended June 30 June 30 2008 � 2007 2008 � 2007 � Revenue: Equipment sales $ 112,479 $ 379,100 $ 342,305 $ 1,593,706 Equipment rental 36,972 56,707 150,786 255,247 Service/contract income � 9,725 � � 2,674 � � 61,363 � � 29,887 � 159,176 438,481 554,454 1,878,840 Cost of Sales � 10,116 � � 18,939 � � 44,329 � � 66,413 � Gross Profit 149,060 419,542 510,125 1,812,427 � Total Expenses � 220,480 � � 447,678 � � 1,259,874 � � 2,381,310 � Operating Loss (71,420 ) (28,136 ) (749,749 ) (568,883 ) � Other Income: Interest income 7,168 14,558 45,912 56,773 Gain on sale of property and equipment � - � � - � � - � � 8,099 � Total Other Income � 7,168 � � 14,558 � � 45,912 � � 64,872 � Net (Loss) Income $ (64,252 ) $ (13,578 ) $ (703,837 ) $ (504,011 ) � � � Basic and Diluted Net Loss per Share $ (.00 ) $ (.00 ) $ (.02 ) $ (.01 ) Weighted Average Shares Outstanding 39,771,500 39,620,262 39,690,323 39,793,320 Balance Sheet Data � � � � � June 30, 2008 June 30, 2007 � Cash and cash equivalents $ 1,081,868 $ 1,376,632 � Total current assets 1,408,379 1,976,825 � Total assets 1,427,786 2,020,385 � Total current liabilities 585,280 582,124 � Accumulated deficit (27,186,167 ) (26,482,330 ) � Total shareholders' equity 816,981 1,426,143 CVProfilor is a registered trademark of Hypertension Diagnostics, Inc. Hypertension Diagnostics, HDI/PulseWave, PulseWave and CVProfile are trademarks of Hypertension Diagnostics, Inc. All rights reserved. Website: www.hdii.com