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Dynatronics Announces Fiscal Year 2008 Operating Results
Date:9/29/2008

that we are positioned to capitalize on the strategic plans we set in place last year," said Cullimore.

"Several factors are expected to help us become profitable," Cullimore continued. "Increased sales and improved margins will be key. The introduction of our first consolidated catalog in September 2008 is expected to give sales a strong boost going into the second quarter of the new fiscal year. In addition, a new pricing strategy is expected to improve margins. This includes the first price increase for our core products in over 20 years. The new catalog not only showcases more than 12,000 products, but facilitates a cohesive sales effort."

During fiscal year 2008, the company introduced the new Synergie Elite line of aesthetic products. "This is the first major redesign of Dynatronics' popular cellulite reduction and microdermabrasion devices, which should bring renewed interest to this high-margin product line," reported Kelvyn H. Cullimore Sr., vice chairman of Dynatronics.

With 36 direct sales representatives in 29 states, the company's presence of direct sales professionals continues to grow. "Over the coming year we will focus on bringing experienced distributors and dealers on board in areas where representation was lost through market consolidation," stated Larry K. Beardall, executive vice president of sales and marketing. "The focus of bringing on more dealers and sales representatives is expected to fuel additional growth in the next fiscal year."

During the process of assimilating its 2007-2008 acquisitions, the company consolidated eight distribution facilities into three distribution warehouses. This consolidation of facilities is expected to result in reductions in labor and overhead expenses in excess of $2.1 million annually.

Dynatronics has scheduled a conference call for investors on Monday, September 29, 2008, at 3:00 p.m. ET. Those wishing to participate should call 800-839-9416 and use passcode 9321818. '/>"/>

SOURCE Dynatronics Corporation
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