Table of Contents

| DELAWARE                                                                            | 72-0925679                                |
|-------------------------------------------------------------------------------------|-------------------------------------------|
| (State      or other jurisdiction of incorporation      or  organization) | (I.R.S.      employer identification no.) |

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ARRHYTHMIA RESEARCH TECHNOLOGY, INC.

PART I - FINANCIAL INFORMATION

Item 1.
Consolidated FinancialStatements

Consolidated Balance Sheets

Consolidated Statements of Income

Consolidated Statements of Cash Flows

Notes to the Consolidated FinancialStatements

Item 2.Management's Discussion and Analysis of Financial Conditionand Results of Operations

Item 3.
Quantitative and QualitativeDisclosures About Market Risk

Item 4.
Controls andProcedures

PART II - OTHER INFORMATION

Item 1A.
RiskFactors

Item 5.Other Information

Item 6.
Exhibits

SIGNATURES

|    |   |                                                                                                    |   |
|---------|--------|---------------------------------------------------------------------------------------------------------|--------|
| Exhibit | 31.1   | Certification of Chief Executive Officer pursuant      to section 302 of the Sarbanes-Oxley Act of 2002 | X-1    |
| Exhibit | 31.2   | Certification of Chief Financial Officer pursuant      to section 302 of the Sarbanes-Oxley Act of 2002 | X-2    |
| Exhibit | 32.1   | Certification of Chief Executive Officer pursuant      to section 906 of the Sarbanes-Oxley Act of 2002 | X-3    |
| Exhibit | 32.2   | Certification of Chief Financial Officer pursuant      to section 906 of the Sarbanes-Oxley Act of 2002 | X-4    |
|    |   |                                                                                                    |   |

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PART I - FINANCIAL INFORMATION

Item 1.  Consolidated Financial Statements

ARRHYTHMIA RESEARCH TECHNOLOGY, INC. ANDSUBSIDIARY

| ASSETS                                                                                                               |   | March      31, 2008 |       | December      31,2007 |
|----------------------------------------------------------------------------------------------------------------------|--------|---------------------|------------|-----------------------|
| Current      assets:                                                                                                 |   | (Unaudited)         |       |                  | (Audited) |   |
| Cash and cash      equivalents                                                                                       |   | $                   | 1,308,141  |                  |   | $ | 1,684,411 |   |
| Trade and other accounts      receivable, net of allowance fordoubtful accounts of $67,330      and $49,830     |   |                | 4,270,590  |                  |   |   | 2,759,491 |   |
| Inventories, net                                                                                                     |   |                | 3,838,985  |                  |   |   | 3,001,520 |   |
| Deferred income taxes,      net                                                                                      |   |                | 46,000     |                  |   |   | 46,000 |   |
| Deposits, prepaid expenses and      other current assets                                                             |   |                | 1,031,547  |                  |   |   | 926,970 |   |
| Total current      assets                                                                                            |   |                | 10,495,263 |                  |   |   | 8,418,392 |   |
|                                                                                                                 |   |                |       |                  |   |   |   |   |
| Property      and equipment, net of accumulated depreciation of$8,133,736 and      $7,872,887                        |   |                | 7,432,303  |                  |   |   | 7,610,258 |   |
| Goodwill                                                                                                             |   |                | 1,564,966  |                  |   |   | 1,564,966 |   |
| Other      intangible assets, net                                                                                    |   |                | 198,227    |                  |   |   | 221,482 |   |
| Other      assets                                                                                                    |   |                | 19,276     |                  |   |   | 24,785 |   |
| Total assets                                                                                                         |   | $                   | 19,710,035 |                  |   | $ | 17,839,883 |   |
|                                                                                                                 |   |                |       |                  |   |   |   |   |
| LIABILITIES      AND SHAREHOLDERS’ EQUITY                                                                      |   |                |       |                  |   |   |   |   |
|                                                                                                                 |   |                |       |                  |   |   |   |   |
| Current      liabilities:                                                                                            |   |                |       |                  |   |   |   |   |
| Accounts payable                                                                                                     |   | $                   | 2,167,128  |                  |   | $ | 633,413 |   |
| Accrued expenses                                                                                                     |   |                | 672,323    |                  |   |   | 352,194 |   |
| Current portion of acquisition      note payable                                                                     |   |                | -          |                  |   |   | 134,083 |   |
| Short term loan      payable                                                                                         |   |                | 709,704    |                  |   |   | 735,655 |   |
| Total current      liabilities                                                                                       |   |                | 3,549,155  |                  |   |   | 1,855,345 |   |
| Long      term liabilities:                                                                                          |   |                |       |                  |   |   |   |   |
| Long      term deferred tax liability                                                                                |   |                | 139,000    |                  |   |   | 139,000 |   |
| Total long term      liabilities                                                                                     |   |                | 139,000    |                  |   |   | 139,000 |   |
|                                                                                                                 |   |                |       |                  |   |   |   |   |
| Total    liabilities                                                                                                 |   |                | 3,688,155  |                  |   |   | 1,994,345 |   |
|                                                                                                                 |   |                |       |                  |   |   |   |   |
| Shareholders’      equity:                                                                                     |   |                |       |                  |   |   |   |   |
| Preferred stock, $1 par value;      2,000,000 shares authorized, none issued                                         |   |                | -          |                  |   |   | - |   |
| Common stock, $0.01 par value;      10,000,000 shares authorized,3,926,491      shares issued, 2,711,680 outstanding |   |                | 39,265     |                  |   |   | 39,265 |   |
| Additional      paid-in-capital                                                                                      |   |                | 10,170,309 |                  |   |   | 10,143,339 |   |
| Common stock held in treasury,      1,214,811 shares at cost                                                         |   |                | (3,326,579 | )                     |   |   | (3,326,579 | ) |
| Retainedearnings                                                                                                     |   |                | 9,138,885  |                  |   |   | 8,989,513 |   |
| Total shareholders’      equity                                                                                |   |                | 16,021,880 |                  |   |   | 15,845,538 |   |
| Total liabilities and      shareholders’ equity                                                                |   | $                   | 19,710,035 |                  |   | $ | 17,839,883 |   |
|                                                                                                                 |   |                |       |                  |   |   |   |   |

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ARRHYTHMIA RESEARCH TECHNOLOGY, INC. ANDSUBSIDIARY

|                                                                |   | Three months      endedMarch      31, |      |   |
|---------------------------------------------------------------------|--------|---------------------------------------|-----------|--------|
|                                                                |   | 2008                                  | 2007      |
| Revenue                                                             |   | $                                     | 5,459,742 |   |   | $ | 5,009,276 |   |
| Cost      of sales                                                  |   |                                  | 4,348,304 |   |   |   | 3,946,347 |   |
| Gross profit                                                        |   |                                  | 1,111,438 |   |   |   | 1,062,929 |   |
|                                                                |   |                                  |      |   |   |   |   |   |
| Selling      and marketing                                          |   |                                  | 190,374   |   |   |   | 183,673 |   |
| General      and administrative                                     |   |                                  | 616,864   |   |   |   | 505,294 |   |
| Research      and development                                       |   |                                  | 83,622    |   |   |   | 13,852 |   |
| Total expense                                                       |   |                                  | 890,860   |   |   |   | 702,819 |   |
|                                                                |   |                                  |      |   |   |   |   |   |
| Income from      operations                                         |   |                                  | 220,578   |   |   |   | 360,110 |   |
| Other      income (expense), net                                    |   |                                  | 4,794     |   |   |   | (10,330 | ) |
| Income      before income taxes                                     |   |                                  | 225,372   |   |   |   | 349,780 |   |
| Income      tax provision                                           |   |                                  | 76,000    |   |   |   | 116,000 |   |
| Net income                                                          |   | $                                     | 149,372   |   |   | $ | 233,780 |   |
|                                                                |   |                                  |      |   |   |   |   |   |
| Net      income per share – basic                             |   | $                                     | 0.06      |   |   | $ | 0.09 |   |
|                                                                |   |                                  |      |   |   |   |   |   |
| Net      income per share – diluted                           |   | $                                     | 0.05      |   |   | $ | 0.08 |   |
|                                                                |   |                                  |      |   |   |   |   |   |
| Cash      dividends declared per share                              |   | $                                     | 0.00      |   |   | $ | 0.00 |   |
|                                                                |   |                                  |      |   |   |   |   |   |
| Weighted      average common sharesOutstanding –    basic     |   |                                  | 2,711,680 |   |   |   | 2,706,502 |   |
| Weighted      average common sharesOutstanding –      diluted |   |                                  | 2,719,385 |   |   |   | 2,778,961 |   |

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ARRHYTHMIA RESEARCH TECHNOLOGY, INC. ANDSUBSIDIARY

|                                                                                                                         |   | Three Months      EndedMarch      31, |
|------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|
|                                                                                                                         |   | 2008                                  | 2007 |
| Cash      flows from operating activities:                                                                                   |   |                                  |   |   |   |   |
| Net income                                                                                                                   |   | $                                     | 149,372 |   |   | $ | 233,780 |   |
|                                                                                                                         |   |                                  |   |   |   |   |   |   |
| Adjustments      to reconcile net income to net cash provided by    (used      in) operating activities: |   |                                  |   |   |   |   |   |   |
| Depreciation and      amortization                                                                                           |   |                                  | 358,482 |   |   |   | 256,773 |   |
| Share based      compensation                                                                                                |   |                                  | 26,970 |   |   |   | 8,696 |   |
| Provision for doubtful      accounts                                                                                         |   |                                  | 17,500 |   |   |   | - |   |
| Changes in operating assets and      liabilities:                                                                            |   |                                  |   |   |   |   |   |   |
| Trade and other accounts      receivable                                                                                     |   |                                  | (1,528,599 | ) |   |   | (333,791 | ) |
| Inventories                                                                                                                  |   |                                  | (837,465 | ) |   |   | (246,436 | ) |
| Deposits, prepaid expenses and      other assets                                                                             |   |                                  | (99,068 | ) |   |   | (113,577 | ) |
| Accounts payable and accrued      expenses                                                                                   |   |                                  | 1,853,844 |   |   |   | 187,534 |   |
| Net cash used in operating      activities                                                                                   |   |                                  | (58,964 | ) |   |   | (7,021 | ) |
|                                                                                                                         |   |                                  |   |   |   |   |   |   |
| Cash      flows from investing activities:                                                                                   |   |                                  |   |   |   |   |   |   |
| Capital expenditures, net of      disposals                                                                                  |   |                                  | (157,272 | ) |   |   | (360,932 | ) |
| Net cash used in investing      activities                                                                                   |   |                                  | (157,272 | ) |   |   | (360,932 | ) |
|                                                                                                                         |   |                                  |   |   |   |   |   |   |
| Cash      flows from financing activities:                                                                                   |   |                                  |   |   |   |   |   |   |
| Payments on acquisition note      payable                                                                                    |   |                                  | (160,034 | ) |   |   | (14,936 | ) |
| Tax benefit from exercise of      stock options                                                                              |   |                                  | - |   |   |   | 33,549 |   |
| Proceeds from the exercise of      stock options                                                                             |   |                                  | - |   |   |   | 59,160 |   |
| Net cash provided by (used in)      financing activities                                                                     |   |                                  | (160,034 | ) |   |   | 77,773 |   |
|                                                                                                                         |   |                                  |   |   |   |   |   |   |
| Net      decrease in cash and cash equivalents                                                                               |   |                                  | (376,270 | ) |   |   | (290,180 | ) |
|                                                                                                                         |   |                                  |   |   |   |   |   |   |
| Cash      and cash equivalents at beginning of period                                                                        |   |                                  | 1,684,411 |   |   |   | 2,065,645 |   |
| Cash      and cash equivalents at end of period                                                                              |   | $                                     | 1,308,141 |   |   | $ | 1,775,465 |   |
|                                                                                                                         |   |                                  |   |   |   |   |   |   |
|                                                                                                                         |   |                                  |   |   |   |   |   |   |
|                                                                                                                         |   |
|                                                                                                                         |   |

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Notes to theConsolidated Financial Statements

| Inventories      consist of the following as of: |   | March      31,2008 |      | December      31, 2007 |
|--------------------------------------------------|--------|--------------------|-----------|-----------------------------|
| Raw materials                                    |   | $                  | 1,210,628 |                        |   | $ | 872,758 |   |
| Work-in-process                             |   |               | 856,806   |                        |   |   | 538,309 |   |
| Finished goods                                   |   |               | 1,771,551 |                        |   |   | 1,590,453 |   |
|      Total              |   | $                  | 3,838,985 |                        |   | $ | 3,001,520 |   |

|                                  |   | Three      Months Ended March 31, |
|---------------------------------------|--------|----------------------------------------|
|                                  |   | 2008                                   |   | 2007 |
| Dividend      Yield                   |   |                                   | 0 | % |   |   | 0.44 | % |
| Expected      Volatility              |   |                                   | 40.65 | % |   |   | 41.66 | % |
| Risk      Free Interest Rate          |   |                                   | 3.28 | % |   |   | 5.25 | % |
| Expected      Option Terms (in years) |   |                                   | 4.5 |   |   |   | 6 |   |

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| Exercise      Price |   | Number      of Outstanding Shares |   | Weighted      Average Remaining Contractual Life (years) |    | Options      Currently Exercisable |   | Average      Fair Value at Grant Date |
|---------------------|--------|-----------------------------------|--------|----------------------------------------------------------|---------|------------------------------------|--------|---------------------------------------|
| $                   | 4.85   |                              |   |                                                     | 25,000  |                               |   |                                  | 1.33 |   |   |   | 20,000 |   |   | $ | 0.66 |   |
|                | 7.15   |                              |   |                                                     | 107,500 |                               |   |                                  | 5.76 |   |   |   | -- |   |   |   | 2.74 |   |
|                | 9.86   |                              |   |                                                     | 69,000  |                               |   |                                  | 3.72 |   |   |   | 69,000 |   |   |   | 4.22 |   |
|                | 12.42  |                              |   |                                                     | 10,000  |                               |   |                                  | 4.34 |   |   |   | 2,000 |   |   |   | 5.38 |   |
|                | 14.10  |                              |   |                                                     | 10,000  |                               |   |                                  | 5.18 |   |   |   | -- |   |   |   | 6.88 |   |
|                | 23.10  |                              |   |                                                     | 10,000  |                               |   |                                  | 4.93 |   |   |   | 2,000 |   |   |   | 10.77 |   |

|                                 |   | Non-Vested      Options |
|--------------------------------------|--------|-------------------------|
|                                 |   | Number      ofShares    |   | WeightedAverage      FairValue |
| Non-vested      at December 31, 2007 |   |                    | 33,000 |   |   | $ | 3.67 |   |
| Granted                              |   |                    | 107,500 |   |   |   | 2.74 |   |
| Vested                               |   |                    | (2,000 | ) |   |   | 10.77 |   |
| Forfeited                            |   |                    | - |   |   |   | - |   |
| Non-vested      at March 31, 2008    |   |                    | 138,500 |   |   | $ | 3.58 |   |

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Item 2.  Management's Discussion and Analysis of FinancialCondition and Results of Operations

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|               |   | Three      Months Ending March 31, |
|--------------------|--------|------------------------------------|
|               |   | 2008                               |   | % |   | 2007 |   | % |
| United      States |   | $                                  | 3,066,751 |   |   |   | 56 |   |   | $ | 2,766,622 |   |   |   | 55 |   |
| Canada             |   |                               | 1,341,015 |   |   |   | 25 |   |   |   | 1,302,770 |   |   |   | 26 |   |
| Europe             |   |                               | 793,608 |   |   |   | 14 |   |   |   | 737,683 |   |   |   | 15 |   |
| Pacific      Rim   |   |                               | 99,653 |   |   |   | 2 |   |   |   | 93,800 |   |   |   | 2 |   |
| Other              |   |                               | 158,715 |   |   |   | 3 |   |   |   | 108,401 |   |   |   | 2 |   |
| Total              |   | $                                  | 5,459,742 |   |   |   | 100 |   |   | $ | 5,009,276 |   |   |   | 100 |   |

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Item 3. Quantitative and Qualitative Disclosure About MarketRisks

Item 4. Controls and Procedures

PART II - OTHER INFORMATION

Item 1A. Risk Factors

Item 5.  Other Information

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Item 6.  Exhibits

| (a)   | Exhibits |
|-----------------|----------|

|  3  |  .0   |  Articles of      Incorporation(a)                                                                                                          |
|----------|------------|--------------------------------------------------------------------------------------------------------------------------------------------------|
|  3  |  .1   |  By-laws(b)                                                                                                                                 |
|  10 |  .43* |  Employment      agreement between James E. Rouse and the Company dated December 26th,      2006.(d)                                        |
|  10 |  .44* |  Employment      agreement between David A. Garrison and the Company dated January 1st,      2007.(d)                                       |
|  10 |  .45* |  Employment      agreement between Michael F. Nolan and the Company dated June 4,      2007.      (e)                                       |
|  31 |  .1   |  Certification      of the CEO pursuant to Rule 13a-14(a) or Rule 15(d)-14(a) on page      X-1.                                             |
|  31 |  .2   |  Certification      of the CFO pursuant to Rule 13a-14(a) or Rule 15(d)-14(a) on page      X-2.                                             |
|  32 |  .1   |  Certification      pursuant to 18 U.S.C. §1350 as adopted pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002 on page X-3. |
|  32 |  .2   |  Certification      pursuant to 18 U.S.C. §1350 as adopted pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002 on pageX-4.  |

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|   | *      Indicates a management contract or compensatory plan required to be filed      as an exhibit. |
|--------|------------------------------------------------------------------------------------------------------|

| (a)   | Incorporated      by reference from the Company’s Registration Statement on Form S-18 as      filed with the Commission in April 1988, Registration Statement No.      33-20945-FW. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Incorporated      by reference from the Company’s Form 10-Q for period ended September 30,      2002 as filed with the Commission in November  2002. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Incorporated      by reference from the Company’s Form 8-K as filed with the Commission on      May 21, 2004. |
|-----------------|---------------------------------------------------------------------------------------------------------------------|

| (d)   | Incorporated      by reference from the Company’s Form 10-KSB for period ended December 31,      2006 as filed with the Commission in March of  2007. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | Incorporated      by reference from the Company’s Form 10-QSB for period ended June 30, 2007      as filed with the Commission in August of2007. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

SIGNATURES

|   | ARRHYTHMIA      RESEARCH TECHNOLOGY, INC.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | By:        /s/  James      E.      Rouse                                                                                       |
|   | James E. Rouse                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | President and Chief Executive      Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | (Principal Executive      Officer)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   | By:        /s/  David      A.      Garrison                                                                                                                                                                                                                      |
|   | David A.  Garrison                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   | Executive Vice President and      Chief Financial Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | (Principal Financial and      Accounting Officer)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

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|  Number |  Exhibit                                                                                                                       |  Page      |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------|-----------------|
|  31.1   |  Certification of the CEO pursuant to Rule      13a-14(a) or Rule 15(d)-14(a)                                                  |   X-1 |
|  31.2   |  Certification of the CFO pursuant to Rule      13a-14(a) or Rule 15(d)-14(a)                                                  |   X-2 |
|  32.1   |  Certification pursuant to 18 U.S.C. §1350      as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of      2002 |   X-3 |
|  32.2   |  Certification pursuant to 18 U.S.C. §1350      as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of      2002 |   X-4 |

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