Hypertension Diagnostics Announces Fiscal Year 2010 Results

ST. PAUL, MN--(Marketwire - September 28, 2010) - Hypertension Diagnostics, Inc. (OTCBB: HDII)

--  Comparable Yearly Revenue Increases by 175%
--  Comparable Quarterly Revenue Expands by 202%
--  Sequential Quarterly Revenue Grows by 294%
--  Total Unit Sales Increase by 225%
--  Cash Generated from Operations for Year is $279,080

Hypertension Diagnostics, Inc. (OTCBB: HDII) today announced audited financial results for the fiscal year ended June 30, 2010 (FY 2010).

Revenue for FY 2010 totaled $1,383,669 compared to $503,175 in the fiscal year ended June 30, 2009 (FY 2009), which represents a 175% increase. The Company incurred a net loss of $989,759 for FY 2010 or $(.02) per share, compared with a net loss of $248,440 for FY 2009, or $(.01) per share.

"The fourth quarter, and in particular the month of June, was a remarkable period for the Company with the highest number of units sold in any month in the Company's history," said Mark Schwartz, Chairman and CEO. "Most importantly, the Company generated cash from operations of $279,080 and therefore was profitable on a non-GAAP basis."

Included in the net loss for FY 2010 are total non-cash charges (mainly deferred stock compensation, depreciation, stock options) of $1,204,391. Included in the net loss for FY 2009 are total non-cash benefits of $125,102. The charge for FY 2010 is a result of an increase in the Company's stock price, which increased the non-cash deferred compensation. The benefit for FY 2009 is a result of a decrease in the Company's stock price, which caused the non-cash deferred compensation expense to become a non-cash benefit. The Company reported a cash balance on June 30, 2010 of $1,053,648.

Fourth quarter revenue of $497,007, for fiscal year 2010 (Q4 2010) compared to $164,691 for the fourth quarter of fiscal year 2009, represented a 202% increase. Revenue for Q4 2010 increased by 294% compared with $126,261 for the third quarter of fiscal year 2010.

The number of units sold by the Company during FY 2010 increased 225% compared with sales during FY 2009. Of those units sold, 15 were from the previously reported START study funded by the National Institutes of Health (NIH) to determine whether the measurement of elasticity can assist in the prevention of cardiovascular disease in HIV patients. Without the START study sales, unit volume increased by 150%.

In June, the Company changed its estimated inventory obsolescence allowance to more accurately reflect the shift from a rental to a sales model and better reflect the gross profit on equipment sales, resulting in an adjustment to inventory and to cost of sales of $150,614. This caused the Company to report a negative cost of sales or an increase in income for FY 2010.

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 2010 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.

CVProfilor is a registered trademark of Hypertension Diagnostics, Inc.

Website: www.hdii.com

                      Hypertension Diagnostics, Inc.
                          Summary Financial Data


Statements of Operations

                           Three Months Ended       Twelve Months Ended
                        ------------------------  ------------------------
                            2010         2009         2010         2009
                        -----------  -----------  -----------  -----------

Revenue:
   Equipment sales      $   456,447  $   125,850  $ 1,187,272  $   332,687
   Equipment rental          15,485       19,420       75,820       86,863
   Warranty, parts &
    supplies income          25,075       19,421      120,577       83,625
                        -----------  -----------  -----------  -----------
                            497,007      164,691    1,383,669      503,175
Cost of Sales              (119,499)      22,294      (19,935)     121,448
                        -----------  -----------  -----------  -----------
Gross Profit                616,506      142,397    1,403,604      381,727

Selling, general and
 administrative
 expenses                   256,354      303,639    2,402,773      643,311
                        -----------  -----------  -----------  -----------
Operating Income /
 (Loss)                     360,152     (161,242)    (999,169)    (261,584)

Interest income               2,187        1,351        9,410       13,144
                        -----------  -----------  -----------  -----------
      Net Income /
       (Loss) before
       taxes            $   362,339  $  (159,891) $  (989,759) $  (248,440)
                        ===========  ===========  ===========  ===========

Net Income / (Loss)
 before taxes           $   362,339  $  (159,891) $  (989,759) $  (248,440)
Deferred compensation
 expense                   (226,500)      84,000    1,095,750     (225,750)
                        -----------  -----------  -----------  -----------
Non-GAAP Pro-forma net
 income / (loss)        $   588,839  $   (75,891) $   105,991  $   (22,690)
                        ===========  ===========  ===========  ===========
(excluding deferred
 compensation expense)

Basic and Diluted Net
 Loss per Share         $      (.00) $      (.00) $      (.03) $      (.01)
Weighted Average Shares
 Outstanding             41,685,964   40,939,193   41,278,165   40,722,471

See accompanying notes.


Balance Sheet Data

                                    June 30, 2010            June 30, 2009
                                   --------------           --------------
Cash and cash equivalents          $    1,053,648           $      697,918
Total current assets                    1,538,712                1,022,528
Total Assets                            1,546,580                1,032,787
Total current liabilities               1,622,849                  340,384
Accumulated deficit                   (28,424,366)             (27,434,607)
Total shareholder's equity /
 (deficit)                         $     (146,818)          $      660,041

Contact Information: Contact: Mark N. Schwartz CEO (651) 687-9999