Physiometrix Announces Third-Quarter and Nine-Month Financial Results Momentum Continues for Company's PSA 4000

Physiometrix Announces Third-Quarter and Nine-Month Financial Results Momentum
Continues for Company's PSA 4000 


NO. BILLERICA, Mass., Oct. 30  /PRNewswire-FirstCall/ -- Physiometrix, Inc. 
announced today that revenues for the third quarter ended September 30, 2003,
were $609,000, compared with revenues of $94,000 for the same period in 2002.
Revenues for the third quarter increased by 205 percent, sequentially, compared
with revenues of $200,000 for the second quarter of 2003.  The net loss for the
third quarter of 2003 was $(1,124,000), or a net loss of $(0.13) per share,
compared with a net loss of $(1,226,000), or a net loss of $(0.15) per share,
for the same period in 2002.

For the nine months ended September 30, 2003, revenues were $1,048,000, a 277
percent increase compared with revenues of $278,000 for the same period in 2002.
 The net loss for the first nine months of 2003 was $(3,608,000), or a net loss
of $(0.43) per share, compared with a net loss of $(4,589,000), or a net loss of
$(0.54) per share, for the same period in 2002.

"We are pleased with the results of the third quarter," said John A. Williams,
president and chief executive officer of Physiometrix. "Our technology continues
to gain traction in the marketplace, as was evidenced by strong interest at our
booth at the recent American Society of Anesthesiologists meeting in San
Francisco."

"We recently announced that our partner, Baxter Healthcare, is significantly
expanding its sales coverage for our PSA 4000," said Williams. "We believe this
is a positive indicator of their belief in the promise of our technology. Baxter
is continuing its emphasis in our key, targeted market segments."

"Shipments of new PSA 4000 monitors to Baxter began this quarter, and we had
sequential growth in our array sales as well.  With continued progress in sales,
we also anticipate growth in revenues from the third quarter to the fourth,"
Williams said.

"The current penetration of the market for level-of-consciousness monitoring is
a very small percentage of applicable procedures worldwide, and we believe our
partner Baxter Healthcare will be effective in capturing that potential. For
example, we are enthusiastic about the opportunity in the Intensive Care Unit
(ICU), and there are key studies both planned and underway that we anticipate
will validate the utility and economics of the PSA 4000 opportunity and will be
drivers of the sales-and-marketing effort by Baxter," continued Williams.

"No doubt, sales execution and overall adoption rates for depth-of-
consciousness monitoring are the key issues for our company. We believe we have
by-passed many of the risks that faced us in the past. We have FDA- cleared
technology, many thousands of successful uses in the field, and a very strong
partner to gain broad distribution.  We will continue to work diligently to
achieve greater penetration for the PSA 4000 and create increased value for our
shareholders," Williams concluded.

Physiometrix believes that, based on its current cash burn rate as well as
current cash reserves and anticipated sales of PSA 4000 units during the
remainder of fiscal 2003, it will have sufficient funding and working capital to
carry it into the first quarter of next year. In addition, Physiometrix believes
that the introduction of the PSA 4000 frontal array is providing Physiometrix
with an opportunity to address the key factor affecting market acceptance of the
Company's products and will provide an opportunity for sales growth during 2003
and beyond.

Physiometrix will hold a telephone conference call to discuss third- quarter and
nine-month 2003 financial results, as well as management's comments related to
the Company's business, at 11:00 A.M. (Eastern) today, October 30, 2003.  The
call can be accessed at 888-243-0812.  A replay of today's conference call will
be available beginning at the conclusion of today's conference call until 11:59
P.M. (Eastern) on November 4, 2003. Replay callers in the U.S. must dial
888-266-2081 (Passcode # 307092).

Designed for use by anesthesiologists, the PSA 4000 is a device that enables an
anesthesiologist to monitor and manage a patient's level of consciousness under
anesthesia in the operating room or intensive care unit. The PSA 4000 has the
potential to enhance patient care, improve recovery times and save lives in
hospitals across the U.S. and around the world.

Physiometrix Inc. designs, manufactures and markets noninvasive medical products
-- based on novel gel materials, sophisticated signal-processing electronics
technologies, and proprietary software -- for use in anesthesia- monitoring
during surgical procedures.

Safe Harbor Statement

Statements in this press release regarding Physiometrix's growth and future
business results of the Company are "forward-looking" statements as defined in
the Private Securities Litigation Reform Act of 1995.  Such statements are based
upon management's current expectations and are subject to a number of factors
and uncertainties.  Information contained in these forward-looking statements is
inherently uncertain, and actual performance and results may differ materially
due to many important factors.  Such factors that could cause actual results to
differ materially from any forward-looking statements made by the Company
include, among others, revenue estimates, dependence on existing and future
products, uncertainty of market acceptance, intense competition, partnership
agreements, and government regulations, especially regulatory approvals.  Other
relevant risks are described in the Company's Form 10-K filed March 28, 2003 and
Form 10Q and 10Q/A dated August 7 and 28, 2003, respectively with the SEC.

  CONTACT:
   Daniel W. Muehl, CFO, Physiometrix Inc., 978-670-2422


  - Financial Tables to Follow -


  Physiometrix, Inc.
  Condensed Statements of Operations
  (Unaudited)


                            Three Months Ended       Nine Months Ended
                              September  30             September 30
                           2003          2002        2003         2002


  Revenues              $609,095       $94,023   $1,048,363      $277,623

  Costs and expenses:
  Cost of goods sold     657,332       244,530    1,328,578       782,010
  Research and
   development           391,822       419,073    1,189,246     1,921,288
  Selling, general,
   and administrative    685,731      681,633     2,156,304     2,264,514
                       1,734,885    1,345,236     4,674,128     4,967,812

  Operating loss     (1,125,790)   (1,251,213)  (3,625,765)   (4,690,189)

  Interest income, net     1,537        24,973       17,614       101,030

  Net loss          $(1,124,253)  $(1,226,240) $(3,608,151)  $(4,589,159)

  Net loss per share     $(0.13)       $(0.15)      $(0.43)       $(0.54)

  Shares used in computing
  Net loss per share   8,422,994     8,422,994    8,422,994     8,422,415





  Physiometrix, Inc.
  Condensed Balance Sheets
  (Unaudited)


                                              September 30      December 31
                                                  2003             2002
  ASSETS

  Current assets:
  Cash, cash equivalents and short term
   investments                                    $634,655     $3,933,917
  Other current assets                           1,324,795      1,506,643
  Total current assets                           1,959,450      5,440,560

  Property, plant and equipment, net               201,426        367,451

  Other long term assets                                 -              -


  Total assets                                  $2,160,876    $ 5,808,011


  LIABILITIES AND STOCKHOLDERS' EQUITY

  Current liabilities:
  Accounts payable and accrued expenses           $360,337       $459,726
  Total current liabilities                        360,337        459,726

  Total stockholders' equity                     1,800,539      5,348,285

  Total liabilities and stockholders' equity    $2,160,876    $ 5,808,011


DATASOURCE: Physiometrix, Inc.



CONTACT: Daniel W. Muehl, CFO of Physiometrix Inc., [phone]



Web site:  http://physiometrix.com/

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