American Electromedics Corp. Announces $25 Million Distribution Contract in Germany for Equidyne's Needleless Injection

AMHERST, N.H. (April 8) BW HEALTHWIRE -April 7, 1999--American Electromedics Corp. (OTCBB:AMER), and it's President, Michael Pieniazek, announced today that its wholly-owned Germany-based subsidiary, Rosch GmbH Medizintechnik, has signed a contract with Diamed-depot-system, to distribute Equidyne Systems, Inc.'s INJEX(TM) needleless injection system. This agreement is for distribution to the diabetes market in the Federal Republic of Germany and is expected to generate revenues to AMER in excess of $25 million over the next 18 months.

Diamed-depot-system, based in Reinbek(Hamburg), Germany was formed in 1981 and maintains a national sales organization dedicated to marketing medical devices in Germany, especially to the diabetes market.

American Electromedics' wholly-owned unit, Equidyne Systems, Inc., manufactures and markets INJEX(TM), a revolutionary "needleless medication injection system" which replaces the needle syringe in cases where medications are delivered subcutaneously. The system is user friendly and pain-free, eliminates needle stick and disposal problems, and is economical to use.

American Electromedics' unit, Rosch GmbH Medizintechnik, is a specialized distributor in Germany marketing intraoral cameras and audiometric devices, and thus has a strong presence in the medical market in Germany. Rosch GmbH has been an integral player in sourcing and developing potential distribution alliances throughout Europe for Equidyne Systems' INJEX(TM) needleless injection system.

In late November, AMER's Rosch GmbH subsidiary was interviewed on national news television in Germany and also interviewed on a major television talk show regarding the Equidyne needleless INJEX(TM) system and how it will help reduce contagious diseases as well as pain and suffering. The response was overwhelming and Rosch GmbH has received hundreds of inquiries regarding the system.

Commenting on the announcement, Andy Rosch, General Manager of Rosch GmbH, stated, "Equidyne executives have been working closely with our management team to develop and execute a European distribution plan for the INJEX(TM) system. Diamed-depot-system is the first European partner we have engaged and is an ideal partner for us in Germany to specifically attack the diabetes market, an ideal candidate market for the INJEX(TM) system. We currently are in discussion with numerous other potential distribution partners in Europe."

Michael Ohle, General Manager of Diamed-depot-system, commented, "As a successful distributor in the diabetes market, we have immediate understanding of the problems and risks associated with the use of syringes and needles. The INJEX(TM) system allows the patient to administer the doses of insulin without the associated pain. We are excited about this distribution agreement and believe it affords us a significant opportunity to market a cutting edge injection product that is safe, painless, easy to use and is priced competitively with conventional needle systems." ABOUT EQUIDYNE SYSTEMS, INC.

Equidyne Systems, Inc., based in San Diego, CA, is a wholly-owned subsidiary of American Electromedics Corp. The Company is focused on becoming a leader in needle-free drug delivery systems for subcutaneous and intramuscular injections. Equidyne's INJEX(TM) Needleless Injector is a spring actuated system that propels a drug, without pain, through the skin in a fraction of a second. INJEX(TM) administered drugs have very effective absorption rates as compared to hypodermic needle injections. The Company has received FDA 510(k) market clearance for its product in the United States. The Company has also recently signed separate supply and distribution agreements in Japan and Mexico.

The statements contained in this news release that are not purely historical are forward-looking statements that may involve risks and uncertainties. The Company's actual results may differ significantly from the results contained in the forward-looking statements. Factors that might cause such differences include, but are not limited to, the effect of losses and other factors on the Company's credit facilities, business and results of operations; the Company's limited capital resources and its ability to fulfill its existing obligations and ongoing capital needs; risks associated with excess or obsolete inventory; the potential impairment of assets; the Company's dependence on key customers and their financial viability; the impact of competition; and the Company's abilities to effectively manage growth. These and other risk factors are discussed in the Company's filings on Forms 8-K, 10-QSB and 10-KSB.

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CONTACT: American Electromedics Corp.

          Michael T. Pieniazek, 603/880-6300 

or

          Liviakis Financial Communications, Inc. 

John M. Liviakis, 916/448-6084

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