American Medical Technologies Reports Strong Third Quarter Results

  
    
  
  
    
      American Medical Technologies, Inc. (OTCBB:ADLI) reported its financial 
      results for the three and nine months ended September 30, 2006. Those 
      results, compared with results for the same periods in 2005, are as 
      follows:
    
    
      
        Third-quarter revenues rose sharply, up 51% from a year ago.
      
      
        Net loss per share was cut in half, $0.02 per share for the third 
        quarter of 2006, compared with a $0.04 per share loss for the third 
        quarter last year.
      
      
        Nine month revenues rose 15% over last year.
      
    
    
      American Medical Technologies reported that revenues for the third 
      quarter 2006 were $768,686, compared to $510,564 for the third quarter 
      2005.
    
    
      The increase in quarterly revenues included stronger sales of the company’s 
      products boosted by domestic and international marketing efforts led by 
      Judd Hoffman, Vice President of Worldwide Sales. In addition, the 
      company experienced favorable results from sales of Spectrum Dental 
      whitening products. In April 2006, American Medical Technologies, Inc. 
      entered into a 5 year exclusive distribution agreement of the Spectrum 
      Dental product line.
    
    
      Third-quarter net loss was $176,343, or $0.02 per share, compared to a 
      net loss of $320,217 or $0.04 per share for the third quarter of 2005. 
      Higher revenues and continued efforts to remain an efficient operation 
      contributed to lower losses in the quarter.
    
    
      For the first nine months of 2006, revenues were $1.85 million, versus 
      $1.60 million for the first nine months of 2005. Net loss for the first 
      nine months was $1.39 million, or $0.17 per share, compared with a net 
      loss of $874,286, or $0.11 per share in 2005. The increase was primarily 
      due to a one-time $410,000 settlement, or $0.05 per share and increased 
      marketing costs.
    
    
      “The third quarter results demonstrate the 
      success of our marketing program which is just starting to take effect. 
      We believe our dental products provide dentists with the next generation 
      in the growing whitening market, while our patented hydrobrasion dental 
      equipment offers improved patient comfort and greater speed for many 
      common procedures, compared with traditional handpiece drills,” 
      said Roger Dartt, President and Chief Executive Officer of American 
      Medical Technologies. “We are very excited 
      going forward as we initiate our marketing program. We are already 
      seeing strong results, and have plans to bring additional sales force on 
      board and grow our outside distribution network which should add to the 
      strong sales momentum we saw in the third quarter.
    
    
      AMT, headquartered in Corpus Christi, Texas, develops and manufactures 
      advanced technologies in the field of dentistry and markets them 
      worldwide. The company’s securities are quoted 
      on the OTC Bulletin Board under the symbol ADLI, and its website is at www.americanmedicaltech.com.
    
    
      The Company makes forward-looking statements in this press release and 
      in its filings with the Securities and Exchange Commission. The Company’s 
      forward-looking statements are subject to risks and uncertainties and 
      include information about its expectations and possible or assumed 
      future results of operations. When the Company uses any of the words “believes”, 
      “expects”, “anticipates”, 
      “estimates” or 
      similar expressions, it is making forward-looking statements.
    
    
      The Company claims the protection of the safe harbor for forward-looking 
      statements contained in the Private Securities Litigation Reform Act of 
      1995 for all of its forward-looking statements. While the Company 
      believes that its forward-looking statements are reasonable, you should 
      not place undue reliance on any such forward-looking statements, which 
      speak only as of the date made. Because these forward-looking statements 
      are based on estimates and assumptions that are subject to significant 
      business, economic and competitive uncertainties, many of which are 
      beyond the Company’s control or are subject 
      to change, actual results could be materially different. Factors that 
      might cause such a difference include, without limitation, the 
      following: the Company’s inability to 
      generate sufficient cash flow to meet its current liabilities, the 
      Company’s potential inability to hire and 
      retain qualified sales and service personnel, the potential for an 
      extended decline in sales, the possible failure of revenues to offset 
      additional costs associated with its change in business model, the 
      potential lack of product acceptance, the Company’s 
      potential inability to introduce new products to the market, the 
      potential failure of customers to meet purchase commitments, the 
      potential loss of customer relationships, the potential failure to 
      receive or maintain necessary regulatory approvals, the extent to which 
      competition may negatively affect prices and sales volumes or 
      necessitate increased sales expenses, and the other risks and 
      uncertainties set forth in this report.
    
    
      Other factors not currently anticipated by management may also 
      materially and adversely affect the Company’s 
      results of operations. Except as required by applicable law, the Company 
      does not undertake any obligation to publicly release any revisions 
      which may be made to any forward-looking statements to reflect events or 
      circumstances occurring after the date of this report.
    
    
      
        
          
            American Medical Technologies, Inc.
          
          
            Condensed Consolidated Statements of Operations
          
          
            (Unaudited)
          
        
      
      
        
        
        
        
        
        
        
        
        
          
             
          
          
            Three Months Ended September 30
          
        
        
        
        
          Nine Months Ended September 30
        
      
      
        
        
        
        
        
        
        
        
        
          
             2006
          
        
        
        
        
          
            2005
          
        
        
        
        
          2006
        
        
        
        
          2005
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Revenues
        
        
        
        
        
        
        
        
          $
        
        
          768,686 
        
        
        
        
          $
        
        
          510,564 
        
        
        
        
          $
        
        
          1,846,797 
        
        
        
        
          $
        
        
          1,601,879 
        
      
      
        
          Royalties
        
        
        
        
        
        
        
        
          7,307 
        
        
        
        
          3,958 
        
        
        
        
          23,716 
        
        
        
        
          90,716 
        
      
      
        
        
        
        
        
        
        
        
        
          775,993 
        
        
        
        
          514,522 
        
        
        
        
          1,870,513 
        
        
        
        
          1,692,595 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Cost of sales
        
        
        
        
        
        
        
        
          371,959 
        
        
        
        
          353,237 
        
        
        
        
          1,031,523 
        
        
        
        
          896,080 
        
      
      
        
          Gross profit
        
        
        
        
        
        
        
        
          404,034 
        
        
        
        
          161,285 
        
        
        
        
          838,990 
        
        
        
        
          796,515 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Selling, general and administrative
        
        
        
        
        
        
        
        
          614,170 
        
        
        
        
          488,061 
        
        
        
        
          2,207,085 
        
        
        
        
          1,635,356 
        
      
      
        
          Research and development
        
        
        
        
        
        
        
        
          16,617 
        
        
        
        
          54,389 
        
        
        
        
          55,470 
        
        
        
        
          131,248 
        
      
      
        
          Loss from operations
        
        
        
        
        
        
        
        
          (226,752)
        
        
        
        
          (381,165)
        
        
        
        
          (1,423,565)
        
        
        
        
          (970,089)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Other income (expenses)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Net realized and unrealized gains/(loss) on investments
        
        
        
        
        
        
        
        
          2,698 
        
        
        
        
          (1,964)
        
        
        
        
          9,263 
        
        
        
        
          (9,488)
        
      
      
        
          Gain on sale of machinery
        
        
        
        
        
        
        
        
          — 
        
        
        
        
          86,062 
        
        
        
        
          — 
        
        
        
        
          86,062 
        
      
      
        
          Other income
        
        
        
        
        
        
        
        
          42,202 
        
        
        
        
          641 
        
        
        
        
          84,527 
        
        
        
        
          64,465 
        
      
      
        
          Interest expense
        
        
        
        
        
        
        
        
          (16,281)
        
        
        
        
          (33,017)
        
        
        
        
          (95,645)
        
        
        
        
          (78,469)
        
      
      
        
          Interest income
        
        
        
        
        
        
        
        
          21,791 
        
        
        
        
          9,226 
        
        
        
        
          37,432 
        
        
        
        
          33,233 
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net loss available to common stockholders
        
        
        
        
        
        
        
        
          $
        
        
          (176,343)
        
        
        
        
          $
        
        
          (320,217)
        
        
        
        
          $
        
        
          (1,387,988)
        
        
        
        
          $
        
        
          (874,286)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Basic earnings per common share
        
        
        
        
        
        
        
        
          $
        
        
          (0.02)
        
        
        
        
          $
        
        
          (0.04)
        
        
        
        
          $
        
        
          (0.17)
        
        
        
        
          $
        
        
          (0.11)
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Diluted earnings per common share
        
        
        
        
        
        
        
        
          $
        
        
          (0.02)
        
        
        
        
          $
        
        
          (0.04)
        
        
        
        
          $
        
        
          (0.17)
        
        
        
        
          $
        
        
          (0.11)
        
      
    
  
American Medical Technologies, Inc. (OTCBB:ADLI) reported its
financial results for the three and nine months ended September 30,
2006. Those results, compared with results for the same periods in
2005, are as follows:

       --  Third-quarter revenues rose sharply, up 51% from a year
            ago.

       --  Net loss per share was cut in half, $0.02 per share for
            the third quarter of 2006, compared with a $0.04 per share
            loss for the third quarter last year.

       --  Nine month revenues rose 15% over last year.

   American Medical Technologies reported that revenues for the third
quarter 2006 were $768,686, compared to $510,564 for the third quarter
2005.

   The increase in quarterly revenues included stronger sales of the
company's products boosted by domestic and international marketing
efforts led by Judd Hoffman, Vice President of Worldwide Sales. In
addition, the company experienced favorable results from sales of
Spectrum Dental whitening products. In April 2006, American Medical
Technologies, Inc. entered into a 5 year exclusive distribution
agreement of the Spectrum Dental product line.

   Third-quarter net loss was $176,343, or $0.02 per share, compared
to a net loss of $320,217 or $0.04 per share for the third quarter of
2005. Higher revenues and continued efforts to remain an efficient
operation contributed to lower losses in the quarter.

   For the first nine months of 2006, revenues were $1.85 million,
versus $1.60 million for the first nine months of 2005. Net loss for
the first nine months was $1.39 million, or $0.17 per share, compared
with a net loss of $874,286, or $0.11 per share in 2005. The increase
was primarily due to a one-time $410,000 settlement, or $0.05 per
share and increased marketing costs.

   "The third quarter results demonstrate the success of our
marketing program which is just starting to take effect. We believe
our dental products provide dentists with the next generation in the
growing whitening market, while our patented hydrobrasion dental
equipment offers improved patient comfort and greater speed for many
common procedures, compared with traditional handpiece drills," said
Roger Dartt, President and Chief Executive Officer of American Medical
Technologies. "We are very excited going forward as we initiate our
marketing program. We are already seeing strong results, and have
plans to bring additional sales force on board and grow our outside
distribution network which should add to the strong sales momentum we
saw in the third quarter.

   AMT, headquartered in Corpus Christi, Texas, develops and
manufactures advanced technologies in the field of dentistry and
markets them worldwide. The company's securities are quoted on the OTC
Bulletin Board under the symbol ADLI, and its website is at
www.americanmedicaltech.com.

   The Company makes forward-looking statements in this press release
and in its filings with the Securities and Exchange Commission. The
Company's forward-looking statements are subject to risks and
uncertainties and include information about its expectations and
possible or assumed future results of operations. When the Company
uses any of the words "believes", "expects", "anticipates",
"estimates" or similar expressions, it is making forward-looking
statements.

   The Company claims the protection of the safe harbor for
forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995 for all of its forward-looking
statements. While the Company believes that its forward-looking
statements are reasonable, you should not place undue reliance on any
such forward-looking statements, which speak only as of the date made.
Because these forward-looking statements are based on estimates and
assumptions that are subject to significant business, economic and
competitive uncertainties, many of which are beyond the Company's
control or are subject to change, actual results could be materially
different. Factors that might cause such a difference include, without
limitation, the following: the Company's inability to generate
sufficient cash flow to meet its current liabilities, the Company's
potential inability to hire and retain qualified sales and service
personnel, the potential for an extended decline in sales, the
possible failure of revenues to offset additional costs associated
with its change in business model, the potential lack of product
acceptance, the Company's potential inability to introduce new
products to the market, the potential failure of customers to meet
purchase commitments, the potential loss of customer relationships,
the potential failure to receive or maintain necessary regulatory
approvals, the extent to which competition may negatively affect
prices and sales volumes or necessitate increased sales expenses, and
the other risks and uncertainties set forth in this report.

   Other factors not currently anticipated by management may also
materially and adversely affect the Company's results of operations.
Except as required by applicable law, the Company does not undertake
any obligation to publicly release any revisions which may be made to
any forward-looking statements to reflect events or circumstances
occurring after the date of this report.

-0-
*T
                 American Medical Technologies, Inc.
           Condensed Consolidated Statements of Operations
                             (Unaudited)

                      Three Months Ended        Nine Months Ended
                         September 30              September 30
                    ----------------------- --------------------------
                        2006       2005         2006          2005
                    ----------- ----------- ------------- ------------

Revenues            $  768,686  $  510,564  $  1,846,797  $ 1,601,879
Royalties                7,307       3,958        23,716       90,716
                    ----------- ----------- ------------- ------------
                       775,993     514,522     1,870,513    1,692,595

Cost of sales          371,959     353,237     1,031,523      896,080
                    ----------- ----------- ------------- ------------
Gross profit           404,034     161,285       838,990      796,515

Selling, general
 and
 administrative        614,170     488,061     2,207,085    1,635,356
Research and
 development            16,617      54,389        55,470      131,248
                    ----------- ----------- ------------- ------------
Loss from
 operations           (226,752)   (381,165)   (1,423,565)    (970,089)

Other income
 (expenses)
  Net realized
   and unrealized
   gains/(loss)
   on investments        2,698      (1,964)        9,263       (9,488)
  Gain on sale of
   machinery                --      86,062            --       86,062
  Other income          42,202         641        84,527       64,465
  Interest
   expense             (16,281)    (33,017)      (95,645)     (78,469)
  Interest income       21,791       9,226        37,432       33,233
                    ----------- ----------- ------------- ------------

Net loss
 available to
 common
 stockholders       $ (176,343) $ (320,217) $ (1,387,988) $  (874,286)
                    ----------- ----------- ------------- ------------

Basic earnings
 per common share   $    (0.02) $    (0.04) $      (0.17) $     (0.11)
                    ----------- ----------- ------------- ------------

Diluted earnings
 per common share   $    (0.02) $    (0.04) $      (0.17) $     (0.11)
                    ----------- ----------- ------------- ------------
*T