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NASDAQ Administrative Rule Allows a Three Month Extension of Grace Period Related to Minimum Bid Price Compliance

Posted on: Monday, 20 October 2008, 12:00 CDT

SALT LAKE CITY, Oct. 20 /PRNewswire-FirstCall/ -- Dynatronics Corporation today announced that under a recently approved administrative rule filed by Nasdaq with the SEC temporarily suspending the $1 minimum bid rule, Dynatronics will now have until approximately March 27, 2009 to comply with this listing requirement.

"We are pleased that NASDAQ recognizes the need to make this change in light of the current market environment," stated Kelvyn H. Cullimore Jr., chairman and president of Dynatronics. "This will give us time to report our financial results for the quarter that will end December 31, 2008, wherein we expect to show significant progress over the same quarter a year ago."

"Our planned return to profitability over the coming year follows a year of losses generated primarily from acquisition-related expenses and a write-down of goodwill," Cullimore added. "With these items now behind us, we're looking forward to improved results. We believe several factors will contribute to the Company's drive to greater profitability including our newly expanded catalog released in September, improved margins achieved through adjusted pricing that accompanied the new catalog, and the introduction of the Synergie Elite product line earlier this year which is generating renewed interest in our aesthetic products."

"In addition," he continued, "we plan to add both domestic and international dealers as well as new direct sales reps in areas where representation has been less than optimal. We are also implementing improved marketing initiatives and pursuing new national accounts. We believe these improvements, together with the more than $2 million in annual expense reductions we have implemented, should restore profitability in the coming quarters and thus increase investor confidence in owning our stock."

Dynatronics manufactures, markets and distributes advanced-technology medical devices, orthopedic soft goods and supplies, treatment tables and rehabilitation equipment for the physical therapy, sports medicine, chiropractic, podiatry, plastic surgery, dermatology and other related medical, cosmetic and aesthetic markets. More information regarding Dynatronics is available at http://www.dynatronics.com/.

This press release contains forward-looking statements. Those statements include references to the company's expectations and similar statements. Actual results may vary from the views expressed in the forward-looking statements contained in this release. The development and sale of the company's products are subject to a number of risks and uncertainties, including, but not limited to, changes in the regulatory environment, competitive factors, inventory risks due to shifts in market demand, market demand for the company's products, availability of financing at cost effective rates, and the risk factors listed from time to time in the company's SEC reports including, but not limited to, the report on Form 10-KSB for the year ended June 30, 2008.

Dynatronics Corporation

CONTACT: Bob Cardon of Dynatronics Corp., 1-800-874-6251,+1-801-568-7000

Web Site: http://www.dynatronics.com/

Source: PRNewswire-FirstCall

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