American Electromedics announces strategic investment in German medical products distribution company

Business Wire, Jan 12, 1996

AMHERST, N.H.--(BUSINESS WIRE)--Jan. 12, 1996--American Electromedics Corp. (OTC: AECO) announced today the purchase of 50 percent of Rosch GmbH Medizintechnik, a medical products distributor with headquarters in Berlin, Germany.

Rosch, which specializes in distributing products to primary care physicians, is an innovative marketing company expanding throughout Europe. 1995 revenues were approximately US $5 million.

AEC paid $500,000 and issued 500,000 shares of its common stock for the 50 percent interest in the company. The interest was purchased from Andy Rosch, the founder of the company. Mr. Rosch will remain as managing director of the company and is the only other shareholder.

AEC has been manufacturing products under the Rosch label since 1992. The investment in this growing business will allow AEC to promote its existing product line throughout the European Community, while taking advantage of new opportunities which will arise out of the partnership. The Rosch company also distributes consumer healthcare products and personal security devices.

Noel A. Wren, president and CEO of American Electromedics, said, "We are very fortunate to have made this strategic investment in Mr. Rosch. He is truly a unique and creative marketing professional. This move really strengthens our core business and is a major building block for our expansion throughout Europe. We will continue to pursue opportunities such as this to aggressively grow the business and create additional value for our shareholders."

American Electromedics Corp. manufactures and markets Tympanometers, which detect middle ear diseases and Audiometers, which are used in hearing screenings. The company's goal is to create, acquire and develop products and services which serve to eliminate anxiety of children in the medical setting.

CONTACT: American Electromedics Corp.

Michael T. Pieniazek or Noel Wren 603/880-6300