ASHDOD, Israel--(BUSINESS WIRE)--May 24, 1999--Healthcare Technologies, Ltd. (NASDAQ: HCTLF) today announced unaudited results for the first quarter ended March 31, 1999. Revenues for the first quarter were US$4.5 million as compared to US$4.7 million for the corresponding quarter last year. Gross profit for the first quarter was US$ 1.7 million as compared to US$ 1.8 million in the first quarter of 1998. The decrease in revenues and gross profit for the first quarter was due primarily to the liquidation and divestiture of the Company's subsidiaries, Diatech Inc. and Gamidor UK during the last quarter of 1998. The net profit for the quarter was $285,000, compared with a net loss of US$(68,000) for the first quarter of the prior year. Yacob Ofer, President and Chief Executive Officer, said, "We are pleased with Healthcare's improved operating results for the quarter. The reorganization of the Company and the important steps toward consolidating our business operations in Israel have made us more efficient and have allowed us to reduce our losses considerably and attain profitability, compared to both the first quarter of last year and the fourth quarter of 1998." Shareholders' equity on March 31, 1999 was US$7.3 million compared to US$9.7 million on March 31, 1998. Total current assets at the end of the quarter were US$9.5 compared to US$10.3 million on March 31, 1998. About Healthcare Technologies Healthcare Technologies, through its subsidiaries Savyon Diagnostics , Gamidor Israel Ltd., and Danyel Biotech Ltd., specializes in the development, manufacture and marketing of medical diagnostic test kits, and provides services and tools to diagnostic and biotech research professionals in laboratory and point of care sites worldwide. Healthcare Technologies Ltd. Condensed Consolidated Statement of Operations (US$ in Thousands, except per share information) Quarter Ended March 31, 1999 1998 ---- ---- Sales US$ 4,483 US$ 4,652 Gross profit US$ 1,672 US$ 1,795 Net income (loss) for the quarter US$ 285 US$ (68) Earnings per share US$ 0.062 US$ (0.015) Weighted average number of shares and share equivalents outstanding 4,603,648 4,430,750 Condensed Balance Sheet As of 3/31/99 3/31/98 Cash and cash equivalents US$ 1,044 US$ 1,263 Total current assets US$ 9,478 US$ 10,256 Total current liabilities US$ 6,539 US$ 7,286 Shareholders' equity US$ 7,295 US$ 9,656 This press release contains certain forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. With the exception of historical information contained herein, the matters discussed in this press release involve risk and uncertainties. Actual results could differ materially from those expressed in any forward looking statement made by or on behalf of Healthcare Technologies Ltd. Readers are referred to the documents filed by the company with the Securities Exchange Commission, specifically the most recent report on Form 20-F that identifies important risks which could cause actual results to differ from those contained in the forward-looking statements. This release and prior releases are available on the KCSA Public Relations Worldwide website at www.kcsa.com.  