Hypertension Diagnostics Announces Second Quarter Fiscal Year 2011 Results


ST. PAUL, MN--(Marketwire - February 11, 2011) - Hypertension Diagnostics, Inc. (OTCBB: HDII), today announced financial results for the second quarter of fiscal year 2011 ("Q2 2011") ended December 31, 2010.

Revenue for Q2 2011 was $457,986 compared to $458,325 for the second quarter of fiscal year 2010 ended December 31, 2009 ("Q2 2010"). During Q2 2010, the Company recorded revenue of $106,340 related to the START study funded by the National Institutes of Health (NIH) to determine whether the measurement of arterial elasticity can assist in the prevention of cardiovascular disease in HIV patients. Without the START study, revenues for Q2 2010 were $351,985. There were no START revenues after the fourth quarter of fiscal 2010 ended June 30, 2010. Excluding START, revenues for Q2 2011 of $457,986 were up by 32% compared to revenues for Q2 2010 of $351,985.

The Company realized a net loss of $181,397 for Q2 2011 or $.00 per share, compared with a net loss of $233,129 for Q2 2010, or $(.01) per share. Included in the net loss for Q2 2011 is a non-cash deferred compensation expense of $116,250. The deferred stock compensation expense was a direct result of the increase in Company's stock price which increased from $0.09 at the beginning of the quarter to $0.095 as the end of the quarter which caused the overall accrual to increase by $64,125 and the Company recorded $52,125 of additional deferred compensation to its CEO during the quarter. The Company reported a cash balance on December 31, 2010 of $924,060, a 3.9% increase compared with a cash balance of $889,425 on September 30, 2010.

For the six month period which ended December 31, 2010, total revenue was $715,194, compared to $760,400 for the six month period which ended December 31, 2009, a 5.9% decrease. Without the START study revenues of $205,085 for the six months ended December 31, 2009, revenue was $555,315. Compared to $715,194 for the six months ended December 31, 2010, there was a 29% increase in revenue.

The Company realized net income of $82,824 or $0.00 per share, including a non-cash deferred compensation benefit of $261,750 for the six month period ended December 31, 2010, compared to a net loss of $1,013,196 or $(.02) per share, which included a non-cash deferred compensation charge of $1,123,500 for the six month period ended December 31, 2009.

"We continue to make progress in growing our business," said Mark Schwartz, Chairman and CEO. "We continue to expand our network of independent distributors and their success provides evidence of our ability to capitalize on the market opportunity to help physicians better identify and manage cardiovascular disease," commented Schwartz.

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.

                      Hypertension Diagnostics, Inc.
                          Summary Financial Data
                               (Unaudited)

Statements of Operations

                          Three Months Ended         Six Months Ended
                              December 31               December 31
                        ------------------------  ------------------------
                            2010         2009         2010         2009
                        -----------  -----------  -----------  -----------
Revenue:
   Equipment sales      $   395,900  $   405,590  $   606,900  $   659,825
   Equipment rental          10,719       20,082       23,571       45,243
   Service/contract
    income                   51,367       32,653       84,723       55,332
                        -----------  -----------  -----------  -----------
                            457,986      458,325      715,194      760,400
Cost of Sales:
   Cost of Sales             83,621       80,822      121,475      131,444
   Inventory
    Obsolescence
    Allowance                 9,551      (37,628)       9,551      (55,466)
                        -----------  -----------  -----------  -----------
      Net Cost of Sales      93,172       43,194      131,026       75,978
                        -----------  -----------  -----------  -----------
      Gross Profit          364,814      415,131      584,168      684,422

Selling, general and
 administrative
 expenses                   550,576      650,666      510,012    1,701,507
                        -----------  -----------  -----------  -----------
Operating Income (Loss)    (185,762)    (235,535)      74,156   (1,017,085)
Other Income:
  Interest income             3,866        2,406        5,861        3,889
  Miscellaneous income          499            0        2,807            0
                        -----------  -----------  -----------  -----------
      Total Other Income      4,365        2,406        8,668        3,889
                        -----------  -----------  -----------  -----------
      Net Income (Loss)
       before taxes    ($   181,397)($   233,129) $    82,824 ($ 1,013,196)
                        ===========  ===========  ===========  ===========

Deferred compensation
 expense                    116,250      359,625     (261,750)   1,123,500
Non-GAAP Pro-forma net
 income (loss)
 (excluding deferred
 compensation expense) ($    65,147) $   126,496 ($   178,926) $   110,304
Net Income (Loss) per
 Common Share:
         Basic          $     (0.00) $     (0.01) $      0.00  $     (0.02)
         Diluted        $     (0.00) $     (0.01) $      0.00  $     (0.02)
Weighted Average Common
 Shares Outstanding:
         Basic           42,234,715   41,217,897   42,115,120   41,095,804
         Diluted         42,234,715   41,217,897   49,627,168   41,095,804



Balance Sheet Data
                                                  December 31,   June 30,
                                                     2010          2010
                                                  -----------  -----------
Cash and cash equivalents                         $   924,060  $ 1,053,648
Total current assets                                1,377,209    1,538,712
Total assets                                        1,385,542    1,546,580
Total current liabilities                             251,645      306,599
Accumulated Deficit                               (28,341,542) (28,424,366)
Total shareholders' equity (deficit)                   27,626     (146,818)

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

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