HDII Hypertension Diagnositc Inc (CE)

Hypertension Diagnostics, Inc. (OTCBB:HDII), today announced financial results for the second quarter of fiscal year 2008 ended December 31, 2007. Revenue for the second quarter ended December 31, 2007 totaled $145,662 compared to $548,723 in the prior year�s second quarter ended December 31, 2006, a 73.5% decrease. The Company�s net income was $165,448 for the second quarter or $.00 per share compared with a net loss of $225,404 for the prior year�s second quarter or $(.01) per share. Included in net income of $165,448 for the second quarter are total non-cash benefits (benefits or charges associated mainly with stock based compensation, depreciation, stock options) of $252,870. Stock based compensation, which is a non-cash charge that relates to the estimated amount due our chief executive officer as part of his compensation for services provided to us, resulted in a benefit of $283,500 for the quarter ended December 31, 2007 compared to an expense of $139,125 for the quarter ended December 31, 2006. The negative expense or benefit for the quarter ended December 31, 2007 results from the decrease in the Company�s stock price during the quarter ended December 31, 2007. This negative expense caused the Company to record net income for the quarter ended December 31, 2007. For the quarter ended December 31, 2007, the company would have incurred a net loss of $118,052 on a pro-forma basis after excluding the stock based compensation benefit. Included in the net loss of $225,404 for the prior year�s second quarter were total non-cash charges of $166,072. For the quarter ended December 31, 2006, the company would have incurred a net loss of $86,279 on a pro forma basis after excluding the stock based compensation expense. The Company reported a cash balance of $1,315,781 on December 31, 2007, a decrease from $1,467,575 reported on September 30, 2007. For the six month period ended December 31, 2007, total revenue was $292,014, compared to $971,208 for the six month period ended December 31, 2006, a 69.9% decrease. For the six month period ended December 31, 2007, the Company incurred a net loss of $290,760, or $(.01) per share, compared with a net loss of $413,485, or $(.01) per share, for the six month period ended December 31, 2006. 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 2007 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 (Unaudited) Three Months Ended Six Months Ended December 31 December 31 2007 2006 2007 2006 Revenue: Equipment sales $ 91,705 $ 476,505 $ 183,635 $ 809,806 Equipment rental 35,558 65,407 81,785 140,585 Service/contract income � 18,399 � � 6,811 � � 26,594 � � 20,817 � 145,662 548,723 292,014 971,208 Cost of Sales � 12,113 � � 13,330 � � 14,441 � � 33,575 � Gross Profit 133,549 535,393 277,573 937,633 � Selling, general and administrative expenses (17,963 ) 774,954 597,022 1,386,960 Gain on sale of property and equipment � - � � - � � - � � (8,099 ) Total Expense � (17,963 ) � 774,954 � � 597,022 � � 1,378,861 � Operating Loss 151,512 (239,561 ) (319,449 ) (441,228 ) � Other Income: Interest income � 13,936 � � 14,157 � � 28,689 � � 27,743 � Total Other Income � 13,936 � � 14,157 � � 28,689 � � 27,743 � Net (Loss) Income $ 165,448 � $ (225,404 ) $ (290,760 ) $ (413,485 ) � � � Basic and Diluted Net Loss per Share $ .00 $ (.01 ) $ (.01 ) $ (.01 ) Weighted Average Shares Outstanding 39,666,835 39,846,547 39,658,077 40,001,826 � � � � � Balance Sheet Data � � December 31, 2007 June 30, 2007 (Unaudited) (Audited) Cash and cash equivalents $ 1,315,781 $ 1,376,632 Total current assets 1,662,092 1,976,825 Total assets 1,691,268 2,020,385 Total current liabilities 487,311 582,124 Accumulated deficit (26,773,090 ) (26,482,330 ) Total shareholders' equity 1,184,308 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