AMERICAN
                              ELECTROMEDICS CORPORATION

        SUMMARY:  AMERICAN ELECTROMEDICS CORP. (OTC:BB) COMPLETES $1 MILLION
                  FINANCING THROUGH A PRIVATE PLACEMENT OF COMMON STOCK AND
                  ALSO ISSUES COMMON STOCK UPON THE CONVERSION OF $720,000
                  PRINCIPAL AMOUNT OF ITS CONVERTIBLE SUBORDINATED DEBENTURES
                  DUE OCTOBER 31, 1999.

        FOR IMMEDIATE RELEASE:                  CONTACT:  MICHAEL T. PIENIAZEK
                                                          PRESIDENT
                                                          (603) 880-6300

        AMHERST, NEW HAMPSHIRE, DECEMBER 9, 1997..... AMERICAN ELECTROMEDICS
        CORP. (OTC BULLETIN BOARD:AMER), announced today that it had completed
        a private placement of 1,030,000 shares of common stock at a price of
        $1.00 per share, or an aggregate of $1,030,000.  The Company also
        issued 720,000 shares of common stock upon the conversion of the
        entire issue of $720,000 principal amount of its 14% Convertible
        Subordinated Debentures due October 31, 1999 (the "Debentures").  The
        Company had reduced the conversion price of the Debentures to $1.00
        per share from $3.75 per share in its efforts to raise additional
        equity capital.

        Michael T. Pieniazek, President, said that "as a result of the $1.03
        million cash infusion and reduction in long term debt, the Company is
        aggressively moving forward on its business plan which includes 
        expanding its acquisition program and providing working capital to
        support its expansion into the dental marketplace with our Viola[TM]
        intraoral camera system which was recently introduced in the U.S. on
        November 30, 1997 at the Greater New York Dental Meeting.  With our
        strengthened financial position and our entry into the dental camera
        business, we are excited about the future."

        The Viola[TM] dental camera system is the world's most portable
        intraoral camera and incorporates unique advancements in intraoral
        camera technology.  This innovative technology, developed by the
        Company's German-based affiliate, Rosch GmbH Medizintechnik, and
        distributed in Europe and Asia will enable the Company to move forward
        into other areas which require the use of high quality optical cameras
        and substantiates its commitment to being the technology leader.  The
        Company is committed to bringing to the medical community products of
        innovation and superiority.

        THE REMARKS CONTAINED IN THIS PRESS RELEASE AND PRESENTED ELSEWHERE BY
        MANAGEMENT FROM TIME TO TIME CONTAIN FORWARD-LOOKING STATEMENTS WHICH
        INVOLVE RISKS AND UNCERTAINTIES.  THE COMPANY'S ACTUAL RESULTS MAY
        DIFFER SIGNIFICANTLY FROM THE RESULTS DISCUSSED IN THIS PRESS RELEASE
        OR IN OTHER FORWARD-LOOKING STATEMENTS PRESENTED BY MANAGEMENT.  AMONG
        THE FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY
        INCLUDE FAILURE OF REVENUE ON NEW PRODUCTS TO DEVELOP AS ESTIMATED,
        REGULATORY DELAYS, LOSS OF EXISTING CUSTOMERS, THE ABILITY TO RAISE
        ADDITIONAL FUNDS ON TERMS FAVORABLE TO THE COMPANY, GENERAL DOWNWARD
        TRENDS IN THE COMPANY'S INDUSTRY, CHANGES IN FOREIGN ECONOMIC
        CONDITIONS OR CURRENCY FLUCTUATIONS AND OTHER RISK FACTORS DETAILED
        FROM TIME TO TIME IN THE COMPANY'S REPORTS FILED WITH THE SEC.

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