Biotel Inc. (BTEL)

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CardioNet Terminates Merger With Biotel
Press Release
Source: Biotel Inc.
On Tuesday July 14, 2009, 10:08 am EDT
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Companies:Biotel inc.
MINNEAPOLIS, July 14 /PRNewswire-FirstCall/ -- Biotel Inc. (OTC Bulletin Board: BTEL - News) today announced that CardioNet has advised Biotel that it is terminating the Merger Agreement with Biotel due to a failure of Biotel to comply with the terms of the agreement. Biotel believes it has complied with all terms of the agreement and that CardioNet's claim is without merit and inconsistent with CardioNet's representations to Biotel. Biotel is considering its legal options.

Biotel President and CEO Steve Springrose said: "It is unfortunate that CardioNet took this action. Biotel has developed significant new products in wireless MCT and event recorder applications. These products are of significant value to arrhythmia service organizations, and Biotel believes these products are cost effective and well positioned for the current medical reimbursement climate. Biotel has worked to build its shareholder value by expanding its range of products and services. Biotel will continue to position these new wireless products to maximize growth and opportunities going forward."

Biotel supplies completed medical devices and clinical research services to medical companies including


ECG diagnostic products
wireless MCT and event recorders, Holter recorders,
tissue management devices, and
24/7 clinical ECG research services

[INDY]

RECENT NEWS!

Biotel Inc. (OTC Bulletin Board: BTEL) announced results for the year ended June 30, 2008, with net earnings of $666,000, or $0.23 per diluted share, on revenues of $11,495,000. This compares to net earnings of $520,000, or $0.19 per share, on revenues of $11,233,000 for the prior year. For its fourth quarter, the company reported net earnings of $191,000, or $0.07 per diluted share, on revenues of $3,187,000. This compares to net earnings of $221,000, or $0.08 per diluted share, on revenues of $3,115,000 in the fourth quarter of 2007.
Highlights for the quarter and year are as follows:

-- Sixth year in a row of profitable growth.
-- Record sales for the fourth quarter and year
-- Net income for the year up 28.1 percent over 2007
-- Gross margin for the year was 44.4% versus 42.6% last year


"Biotel achieved a record fiscal year in revenues and earnings with a strong improvement in the fourth quarter over the third quarter," Biotel President and CEO Steve Springrose said. "Our Braemar Holter devices, event recorders, liposuction and other medical devices made strong revenue contributions, and our Agility 24/7 cardiac monitoring services continued to make very strong year over year gains. The highlight of the quarter was the introduction of our new ER920W cardiac arrhythmia monitor, our first entry into the high potential wireless market. Very importantly, we have already received FDA 510(k) approval of our next generation wireless monitor employing 'Fusion' technology, scheduled for product introduction early in calendar 2009. Biotel serves as a development partner to medical corporations seeking new devices and clinical research services."

3 months ended 3 months ended %
June 30, 2008 June 30, 2007 Change

Revenues $3,187,000 $3,115,000 2.3%
Net Income $191,000 $221,000 (13.6%)
Earnings Per Share, Basic $.07 $0.08
Earnings Per Share, Diluted $.07 $0.08



12 months ended 12 months ended %
June 30, 2008 June 30, 2007 Change

Revenues $11,495,000 $11,233,000 2.3%
Net Income $666,000 $520,000 28.1%
Earnings Per Share, Basic $.25 $0.20
Earnings Per Share, Diluted $.23 $0.19

SOURCE Biotel Inc.