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Torrance, CA January 6, 2005   News Release Index 

EYE DYNAMICS RETIRES DEBT THREE YEARS EARLY FROM EARNED PROFITS
Eye Dynamics, Inc. ( EYDY, Trade), has paid off the balance owed on a $400,000 promissory note three years early. This was made possible by utilization of profits earned in 2004 and prior. The payoff was made at yearend and will be reflected in the Financial Statement for the year 2004. The payoff amount was $256,000.

November and December sales were the two best months of the year. December even exceeded revenues for December of 2003, by about 5%, which was the best sales year in the company's history. Exact revenue and profit amounts will be announced after final accounting and review is completed later this month.

"It appears that, with the increase in sales in November and December, the Medicare reimbursement issue has been largely resolved", stated Charles Phillips, President, "More and more buyers are coming forward to purchase, whereas, during the past several months, they have been holding back, waiting for the Medicare reimbursement issues to be resolved. We forecast that sales will continue its upward growth throughout the coming year."

Cash reserves at over $800,000 continue to be more than adequate, even with paying off the Promissory Note three years before its due date. Eye Dynamics is actively seeking other products that are synergistic with its medical product line as well as potential merger/acquisition candidates.


About Eye Dynamics, Inc.

Eye Dynamics is in the business of producing and marketing patented proprietary products and other services for the institutional, medical and government markets. The company is a leader in the Video ENG medical product market, having invented the Video ENG system and brought it to market in 1994. SafetyScope, the company’s latest product, is designed for the ‘fitness-for-duty’ screening of workers. SafetyScope is simple to use, takes only 90 seconds and does not require any bodily fluids like urine-based drug testing. It is based on the manual methods of evaluating eye responses of an individual to detect neurological signs of impairment used by law enforcement throughout the United States.

To find out more about Eye Dynamics, Inc. (OTC:EYDY), visit our web site at WWW.EYEDYNAMICS.COM

Safe Harbor for Forward Looking Statements
This news release includes forward-looking statements that are made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. While these statements are made to convey to the public the company’s progress, business opportunities and growth prospects, readers are cautioned that such forward-looking statements represent management’s opinion. Whereas management believes such representations to be true and accurate based on information and data available to the company at this time, actual results may differ materially from those described. The company’s operations and business prospects are always subject to risk and uncertainties. Important factors that may cause actual results to differ are set forth in the company’s periodic filings with the U.S. Securities and Exchange Commission.