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Dynatronics' Acquisitions Boost Sales 80 Percent in Third Quarter
Date:5/14/2008

SALT LAKE CITY, May 14 /PRNewswire-FirstCall/ -- Dynatronics Corporation (Nasdaq: DYNT) today announced results for its third fiscal quarter ended March 31, 2008.

Sales for the quarter increased 80 percent to $7,781,871, compared to $4,330,440 in the prior year period. For the nine months ended March 31, 2008, sales increased 90 percent to $24,534,934, compared to $12,897,679 in the prior year period. The increase in sales was due primarily to the acquisition of six of the company's top independent distributors on June 30, 2007, and July 2, 2007. Dynatronics now has 40 direct sales reps covering 30 states across the country in addition to its well-established domestic and international dealer network.

"In the face of major competitors' consolidation strategies in our industry, acquiring these distributors was essential to preserving our channels of distribution and allowing us to compete more effectively," stated Kelvyn H. Cullimore Jr., chairman and president of Dynatronics. "Though we met our sales objectives through the first six months after the acquisitions, the current quarter fell short of achieving our sales goals largely as a result of the recent slowdown in the economy and clinic expansions. Also, the final integration of these acquisitions has taken a quarter longer than expected. These factors, along with final integration costs incurred during the quarter, contributed to a larger third quarter loss than expected."

Net loss for the quarter ended March 31, 2008 was $628,775 ($.05 per share), compared to a net loss of $81,389 ($.01 per share) in the prior year period. For the nine months ended March 31, 2008, net loss totaled $1,679,770 ($.12 per share), compared to a net loss of $299,984 ($.03 per share) in
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SOURCE Dynatronics Corporation
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