American Medical Technologies Reports Third Quarter 2005 Results

American Medical Technologies, Inc. (OTCBB:ADLI)
reported its financial results for the third quarter and first nine
months of 2005 ended September 30, 2005. Those results, compared with
results for the third quarter and first nine months of 2004, are as
follows:

   --  Third-quarter revenues and royalties declined 19 percent from
        a year ago. Royalty proceeds and sales of the
        industrial-market products increased sharply, but were offset
        by lower sales of dental-market products as the company
        concentrated on the introduction of its new hydrobrasion(TM)
        dental products.

   --  Net loss was $0.04 per share diluted for the third quarter,
        compared with $0.02 per share diluted in the third quarter
        last year.

   --  Licensing royalties were $3,958 for the third quarter and
        $90,716 for the first nine months. Two new licensing
        agreements for the company's air-abrasion and hydrobrasion
        technologies are driving that highly profitable new revenue
        stream.

   American Medical Technologies reported revenues and royalties for
the third quarter of $514,522, compared to $638,336 in the third
quarter last year.
   The decrease in quarterly revenues and royalties included lower
sales of dental-market products compared with the prior-year quarter,
partly offset by higher industrial market sales. Third-quarter 2004
revenues included $35,100 from a since-discontinued subsidiary.
   Third-quarter net loss was $320,217, or $0.04 per share diluted,
compared to a net loss of $161,897, or $0.02 per share diluted, in the
third quarter of 2004. Cost-reduction measures adopted earlier this
year led to a slight reduction in selling, general and administrative
costs for the quarter.
   For the first nine months of 2005, revenues and royalties were
$1.69 million, versus $1.62 million for the first nine months of 2004.
Net loss for the first nine months of 2005 was $874,286, or $0.11 per
share diluted, compared with a net profit of $578,406, or $0.06 per
share diluted, for the first nine months of 2004.
   In addition to the items mentioned above, nine-months results also
include an $41,450 charge for a change in the Company's inventory
allowance and for writeoffs of obsolete parts. Nine-months 2004
earnings included a one-time gain of $1.6 million, or $0.18 per share,
related to the sale of available-for-sale securities.
   "During the third quarter, we continued to demonstrate the
advantages and revenue opportunities of our new hydrobrasion dental
equipment, which 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. "Our new hydrobrasion technology has received
excellent feedback from thought leaders in the professional dentistry
marketplace, and response at major trade shows has been very
encouraging. Seminars on our new hydrobrasion technology taught by Dr.
Ross Nash, Co-Founder of the Nash Institute for Dental Learning held
at our booth during the trade show were well attended."
   Techniques for the new hydrobrasion technology will be taught at
the Nash Institute for Dental Learning using two of American Medical
Technologies' new machines.
   In 2005 American Medical Technologies has signed sales and
licensing agreements that are expected to contribute to future growth
and profitability. They include:

   --  non-exclusive license agreements with KaVo Dental GmbH, a
        worldwide manufacturer of dental equipment and ancillary
        products, and Danville Materials, Inc., a worldwide
        manufacturer of dental equipment and ancillary products, for
        use of AMT's patented air abrasion and hydro abrasion
        technologies.

   --  an agreement between the Company's industrial division, Texas
        Airsonics, and Bell Helicopter for the sale of machining units
        to be used in the manufacture of aerospace composites.

   --  an agreement with Becton, Dickinson and Co. to upgrade its
        Texas Airsonics equipment used to prepare, clean, and polish
        hypodermic needles. Becton, Dickinson and Co. is the third
        largest medical products and equipment company in the United
        States.

   The Company plans to augment its dental product line, to increase
the number of independent sales representatives marketing its
products, and to extend the market penetration of its industrial
products through additional dealer representatives.
   "We will continue to concentrate on our core business of
developing and marketing enhanced air abrasion products for the dental
and industrial markets, while leveraging our patented technologies
through high-margin licensing agreements," Dartt said. "I anticipate
renewed growth across our business in 2006."
   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.
   To the extent available to it, 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.
   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
                       ----------------------  ----------------------
                          2005        2004        2005        2004
                       ----------  ----------  ----------  ----------

Revenues               $  510,564   $ 638,855  $1,601,879  $1,623,235
Royalties                   3,958        (519)     90,716       1,413
                       ----------  ----------  ----------  ----------
                          514,522     638,336   1,692,595   1,624,648

Cost of sales             353,237     349,411     896,080     802,631
                       ----------  ----------  ----------  ----------
Gross profit              161,285     288,925     796,515     822,017

Selling, general and
 administrative           488,061     488,957   1,635,356   1,901,788
Research and
 development               54,389      39,309     131,248     127,860
                       ----------  ----------  ----------  ----------
Loss from operations     (381,165)   (239,341)   (970,089) (1,207,631)

Other income
 (expenses)
  Gain on sale of
   available for sale
   securities                  --          --          --   1,642,050
  Net realized and
   unrealized loss on
   investments             (1,964)    (23,033)     (9,488)    (88,712)
  Gain on sale of
   machinery               86,062          --      86,062          --
  Other income                641     100,717      64,465     261,564
  Interest expense        (33,017)    (28,503)    (78,469)    (86,300)
  Interest income           9,226      28,263      33,233      57,435
                       ----------  ----------  ----------  ----------
Net income(loss)         (320,217)   (161,897)   (874,286)    578,406

Preferred dividends            --          --          --     (47,671)
                       ----------  ----------  ----------  ----------

Net income(loss)
 available to common
 stockholders          $ (320,217)  $(161,897) $ (874,286) $  530,735
                       ----------  ----------  ----------  ----------

Basic earnings per
 common share          $    (0.04)  $   (0.02) $    (0.11) $     0.07
                       ----------  ----------  ----------  ----------

Diluted earnings per
 common share          $    (0.04)  $   (0.02) $    (0.11) $     0.06
                       ----------  ----------  ----------  ----------
*T