HDII Hypertension Diagnositc Inc (CE)

Hypertension Diagnostics, Inc. (OTCBB: HDII), today announced financial results for the first quarter (Q1) of fiscal year 2009 ended September 30, 2008. Revenue for Q1 2009 totaled $136,512 compared to $146,352 for Q1 2008 ending September 30, 2007, which represents a 6.7% decrease. The Company�s net income was $121,605 for Q1 2009 or $.00 per share, compared with a net loss of $456,208 for Q1 2008, or $(.01) per share. Included in the net income for Q1 2009 are total non-cash benefits (mainly deferred compensation, depreciation, stock options) of $204,032. In Q1 2008, total non-cash charges were $316,976. The decline in the Company�s stock price during Q1 2009 resulted in a negative expense for the Q1 2009 deferred compensation expense of $229,688. This caused the company to report net income, which would not have occurred without the negative deferred compensation expense in Q1 2009. The Company reported a cash balance on September 30, 2008 of $984,345. �While the current quarter shows a modest decline in revenues from the comparable quarter in the last fiscal year, we are encouraged by some early success with our new sales strategy of building a network of independent distributors, � said Mark Schwartz, Chairman and CEO. �As a result, the Company continues to add new distributors who sell the CVProfilor along with complementary products to physician customers. � 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-Q, 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 September 30 2008 � 2007 � Revenue: Equipment sales $ 82,000 $ 91,930 Equipment rental 25,697 46,227 Service/contract income � 28,815 � 8,195 � 136,512 146,352 Cost of Sales � 4,531 � 2,328 � Gross Profit 131,981 144,024 � Total Expenses � 16,860 � 614,985 � Operating Income or (Loss) 115,121 (470,961 ) � Other Income: Interest income � 6,484 � 14,753 � Total Other Income 6,484 14,753 � � Net Income (Loss) $ 121,605 � ($456,208 ) � Basic and Diluted Net Loss per Share $ 0.00 ($0.01 ) Basic and Diluted Weighted Average Shares Outstanding 40,363,001 39,649,319 Balance Sheet Data � � � September 30, 2008 � June 30, 2008 Cash and cash equivalents � $ 984,345 $ 1,081,868 Total current assets 1,296,351 1,408,379 Total assets 1,312,978 1,427,786 Total current liabilities 326,978 585,280 Accumulated deficit (27,064,562 ) (27,186,167 ) Total shareholders' equity 961,461 816,981 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