Hypertension Diagnostics, Inc. Announces FY 2010 Second Quarter Results

ST. PAUL, MN--(Marketwire - February 19, 2010) - Hypertension Diagnostics, Inc. (OTCBB: HDII) (www.hdii.com), today announced financial results for the second quarter (Q2) of fiscal year 2010 which ended December 31, 2009.

Revenue for Q2 2010 totaled $458,325 compared to $137,207 for Q2 2009 which ended December 31, 2008, which represents a 234% increase. Q2 revenue from the sale of the Company’s research product used in the START sub-study on Arterial Elasticity that is examining blood vessel function and cardiovascular risk during HIV infection and funded by the National Institutes of Health (NIH) was $106,340. As December 31, 2009, 13 of the 15 total START units have been shipped; therefore the Company does not expect any material recurring revenue from START. Q2 revenue from non-START sources was $351,985, a 157% increase from the prior year’s second quarter total revenue and a 73% increase from Q1 2010’s non-START revenue of $203,330. Total revenue for Q2 2010 increased 52% from total revenue for Q1 2010 of $302,076.

“We are pleased by the magnitude of our second quarter sales growth,” said Mark Schwartz, Chairman and CEO. “For the first half of fiscal year 2010, HDI has generated 150% of the revenue generated for the entire fiscal year 2009. We are on track to have one of our best years in recent memory,” continued Schwartz.

Net loss for Q2 2010 was $233,129 or $(.01) per share, compared to a net loss of $191,165 for Q2 2009, or $.00 per share. Included in the net loss for Q2 2010 are total non-cash charges (deferred compensation, depreciation, stock options expense) of $328,817. In Q2 2009, total non-cash charges were $92,178. Excluding deferred compensation expense, which is largely influenced by changes in the company’s stock price, the Company generated non-GAAP pro-forma net income of $126,495 for Q2.

The Company reported a cash balance on December 31, 2009 of $1,071,822.

For the six month period which ended December 31, 2009, total revenue was $760,400, compared to $273,719 for the six month period which ended December 31, 2008, a 178% increase. For the six month period which ended December 31, 2009, the Company incurred a net loss of $1,013,196 or $(.02) per share, including a non-cash charge of $1,171,007, compared with a net loss of $69,560 or $.00 per share, including a non-cash benefit of $111,855, for the six month period which ended December 31, 2008. Excluding deferred compensation expense, the Company generated non-GAAP pro-forma net income of $110,303 for six months which ended December 31, 2009.

About Hypertension Diagnostics, Inc.

Hypertension Diagnostics, Inc. (“HDI”) manufactures and markets medical devices for early detection and management of cardiovascular disease in the U.S. and in 37 countries. Its main product, the CVProfilor® DO-2020 CardioVascular Profiling System, has been approved by the Food and Drug Administration (FDA), and is being marketed to primary care physicians in the U.S. HDI’s CardioVascular Profiling Systems non-invasively measure both large and small artery elasticity. Small artery elasticity has been shown to be predictive of cardiovascular disease. Several large pharmaceutical manufacturers have used HDI’s CardioVascular Profiling Systems in their multi-site clinical research trials. There are over 300 published, peer-reviewed scientific articles and presentations on HDI’s methodology, which provides evidence on the validity, accuracy and reproducibility of HDI’s CardioVascular Profiling technology. The technology was developed at the University of Minnesota by a team led by world-renown cardiologist, Dr. Jay N. Cohn.

Safe Harbor Statement

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 2009 Annual Report on Form 10-K, 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 Six Months Ended December 31 December 31 ---------------------- ----------------------- 2009 2008 2009 2008 ---------- ---------- ----------- ---------- Revenue: Equipment sales $ 405,590 $ 96,837 $ 659,825 $ 178,837 Equipment rental 20,082 24,119 45,243 49,816 Warranty, parts & supplies income 32,653 16,251 55,332 45,066 ---------- ---------- ----------- ---------- 458,325 137,207 760,400 273,719 ---------- ---------- ----------- ---------- Cost of Sales 43,194 35,639 75,978 71,786 ---------- ---------- ----------- ---------- Gross Profit 415,131 101,568 684,422 201,933 Selling, general and administrative expenses 650,666 296,096 1,701,507 281,340 ========== ========== =========== ========== ---------- ---------- ----------- ---------- Operating Income (Loss) (235,535) (194,528) (1,017,085) (79,407) ---------- ---------- ----------- ---------- Interest income 2,406 3,363 3,889 9,847 ---------- ---------- ----------- ---------- Net income (loss) before income taxes (233,129) (191,165) (1,013,196) (69,560) Income Taxes - - - - ---------- ---------- ----------- ---------- Net income (loss) $ (233,129) $ (191,165) $(1,013,196) $ (69,560) ========== ========== =========== ========== Net income (loss) $ (233,129) $ (191,165) $(1,013,196) $ (69,560) Deferred compensation expense 359,625 66,938 1,123,500 (162,750) Non-GAAP Pro-forma net income (loss) (excluding deferred compensation expense) $ 126,495 $ (124,227) $ 110,303 $ (232,310) Basic and Diluted Net Loss per Share $ (0.01) $ 0.00 $ (0.02) $ 0.00 Weighted Average Shares Outstanding Basic & Diluted 41,217,897 40,795,820 41,095,804 40,579,411 Balance Sheet Data December 31, June 30, 2009 2009 ------------ ------------ Cash and cash equivalents $ 1,071,822 $ 697,918 Total current assets 1,364,855 1,022,528 Total assets 1,373,357 1,032,787 Total current liabilities 255,009 119,884 Accumulated deficit (28,447,803) (27,434,607) Total shareholders’ equity (307,405) 660,041 

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