<PAGE>

                                   FORM 10-Q


                       SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D. C. 20549

[X]  Quarterly report pursuant to section 13 or 15(d) of the Securities 
Exchange Act of 1934 For the quarterly period ended JUNE 30, 1998 or

[ ]  Transition report pursuant to section 13 or 15(d) of the Securities 
Exchange Act of 1934 For the transition period from ______ to ______

                                     1-9731
                              (COMMISSION FILE NO.)

                       ARRHYTHMIA RESEARCH TECHNOLOGY, INC.
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)


          DELAWARE                                       72-0925679
(STATE OR OTHER JURISDICTION OF             (I.R.S. EMPLOYER IDENTIFICATION NO.)
INCORPORATION OR ORGANIZATION)



       5910 COURTYARD DRIVE #300
             AUSTIN, TEXAS                                  78731
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICE)                   (ZIP CODE)


                                  (512) 343-6912
              (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes  X    No     
                                      -----    -----.

As of August 11, 1998 there were 3,563,101 shares of common stock outstanding.

This report consists of 10 pages.

<PAGE>

                       ARRHYTHMIA RESEARCH TECHNOLOGY, INC.
                                TABLE OF CONTENTS
                                   FORM 10-Q
                                 June 30, 1998

<TABLE>
<S>      <C>                                                                          <C>
PART I - FINANCIAL INFORMATION.........................................................3

     Item 1.  Financial Statements.....................................................3
              CONSOLIDATED BALANCE SHEETS..............................................3
              CONSOLIDATED STATEMENTS OF OPERATIONS....................................4
              CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY...............5
              CONSOLIDATED STATEMENTS OF CASH FLOWS....................................6
              SUPPLEMENTAL NOTES TO CONSOLIDATED FINANCIAL STATEMENTS..................7
     Item 2.  Management's Discussion and Analysis of Financial Condition and 
     Results of Operations.............................................................7

PART II - OTHER INFORMATION............................................................9

     Item 1.  Legal Proceedings - none.................................................9
     Item 2.  Changes in Securities - none.............................................9
     Item 3.  Defaults Upon Senior Securities - none...................................9
     Item 4.  Submission of Matters to a Vote of Security Holders - none...............9
     Item 5.  Other Information - none.................................................9
     Item 6.  Exhibits and Reports on Form 8-K - none..................................9
     SIGNATURES........................................................................9
</TABLE>


                                 Page 2 of 9

<PAGE>
                                       
                         PART 1- FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

               ARRHYTHMIA RESEARCH TECHNOLOGY, INC. AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                          June 30,        December 31,
                                     ASSETS                                                 1998              1997
                                                                                        -----------       -----------
<S>                                                                                     <C>               <C>
Current assets:
  Cash and cash equivalents ......................................................      $   272,607       $   214,938
  Trade and other accounts receivable, net of allowance for 
    doubtful accounts of $55,345 and $61,318 .....................................        2,447,435         2,397,269
  Inventories, net ...............................................................        1,557,722         2,001,123
  Income Tax Recoverable .........................................................          320,278           262,810
  Other current assets ...........................................................          119,677            63,861
                                                                                        -----------       -----------
    Total current assets .........................................................        4,717,719         4,940,001

Property and equipment, net of accumulated depreciation of 
  $2,679,688 & $2,322,218 ........................................................        3,999,263         4,195,167
Patent and software development costs, net of accumulated 
  amortization of $438,469 and $422,858 ..........................................           85,593            85,667
Goodwill, net of accumulated amortization of $870,568 & $635,476 .................        1,790,505         2,025,597
Deferred income taxes, net .......................................................          458,923           458,923
Other assets .....................................................................          115,248           127,055
                                                                                        -----------       -----------
    Total assets .................................................................      $11,167,251       $11,832,410
                                                                                        -----------       -----------
                                                                                        -----------       -----------


                      LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
  Revolving credit facilities ....................................................      $   466,705       $   467,135
  Current maturities of bonds payable and long-term debt .........................          197,815           320,328
  Current maturities of capital lease obligations ................................           37,177           100,371
  Accounts payable ...............................................................          677,919         1,091,550
  Income taxes payable ...........................................................           40,607                 0
  Accrued liabilities and Other Liabilities ......................................          549,436           667,172
                                                                                        -----------       -----------
    Total current liabilities ....................................................        1,969,659         2,646,556

Bonds payable, and other long-term debt, net of current 
  maturities ....................................................................           977,086           953,086
Capital lease obligations, net of current portion ................................           92,082            92,082
Deferred revenue .................................................................           39,413            53,896
                                                                                        -----------       -----------
    Total liabilities ............................................................        3,078,240         3,745,620
                                                                                        -----------       -----------


Shareholders' equity:
  Preferred stock, $1 par value; 2,000,000 shares authorized, none issued ........                -                 -
  Common stock, $.01 par value; 10,000,000 shares authorized;
      3,679,216 issued ...........................................................           36,792            36,792
Additional paid-in-capital .......................................................        8,909,306         8,909,307
Treasury stock, 116,115 shares at cost ...........................................         (878,787)         (878,787)
Unearned ESOP compensation .......................................................          (60,705)          (82,134)
Retained earnings ................................................................           82,405           101,612
                                                                                        -----------       -----------
    Total shareholders' equity ...................................................        8,089,011         8,086,790
                                                                                        -----------       -----------
    Total liabilities and shareholders' equity ...................................      $11,167,251       $11,832,410
                                                                                        -----------       -----------
                                                                                        -----------       -----------
</TABLE>
                                       
                   The accompanying notes are an integral part 
                    of the consolidated financial statements.


                                 Page 3 of 9

<PAGE>
                                       
               ARRHYTHMIA RESEARCH TECHNOLOGY, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                  Three Months Ended June 30,      Six Months Ended June 30,
                                                  --------------------------      --------------------------
                                                     1998            1997            1998            1997
                                                  ----------      ----------      ----------      ----------
<S>                                               <C>             <C>             <C>             <C>
Net sales ..................................      $2,845,232      $2,829,610      $5,274,344      $6,703,141
Cost of sales ..............................       1,727,490       1,784,481       3,163,721       4,522,616
                                                  ----------      ----------      ----------      ----------

Gross profit ...............................       1,117,742       1,045,129       2,110,623       2,180,525
                                                  ----------      ----------      ----------      ----------

Selling and marketing ......................          86,530         170,913         183,492         311,867
General and administrative .................         541,191         556,335       1,078,670       1,139,879
Research and development ...................         112,156          77,077         212,204         123,296
Amortization of goodwill ...................          27,911          31,799          56,627          60,515
                                                  ----------      ----------      ----------      ----------
Total expenses .............................         767,788         836,124       1,530,993       1,635,557
                                                  ----------      ----------      ----------      ----------

Income from operations .....................         349,954         209,005         579,630         544,968

Other income (expense):
  Interest expense .........................          36,376          59,998          67,589         112,193
  Other ....................................          26,388           1,913          53,145           5,668
                                                  ----------      ----------      ----------      ----------

Income before income taxes and other 
 charges....................................         287,190         147,094         458,896         427,107

Provision for Asset Impairment .............         453,529               0         453,529               0
                                                  ----------      ----------      ----------      ----------
Income (loss) before income taxes ..........        (166,339)        147,094           5,367         427,107
Income taxes (credit) ......................         (85,964)         66,301          24,573         179,475
                                                  ----------      ----------      ----------      ----------

Net income .................................      $  (80,375)     $   80,793     $   (19,206)     $  247,632
                                                  ----------      ----------      ----------      ----------
                                                  ----------      ----------      ----------      ----------

Net income per share .......................      $    (0.02)     $     0.02     $     (0.01)     $     0.07
                                                  ----------      ----------      ----------      ----------
                                                  ----------      ----------      ----------      ----------

Weighted average number of common
  and dilutive common equivalent
  shares outstanding .......................       3,563,101       3,563,101       3,563,101       3,563,101
                                                  ----------      ----------      ----------      ----------
                                                  ----------      ----------      ----------      ----------
</TABLE>
                                       
                The accompanying notes are an integral part 
                 of the consolidated financial statements.

                                  Page 4 of 9
<PAGE>

               ARRHYTHMIA RESEARCH TECHNOLOGY, INC. AND SUBSIDIARY
           CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

<TABLE>
<CAPTION>
                                                                                                Net         Retained
                                 Common Shares      Additional                  Unearned     Unrealized     Earnings
                             --------------------    Paid-in      Treasury        ESOP       Securities   (Accumulated
                               Number      Amount    Capital       Stock      Compensation     Gains        Deficit)      Total
                             ----------   -------   ----------   ---------    ------------   ----------   ------------  ----------
<S>                          <C>          <C>       <C>          <C>          <C>            <C>          <C>           <C>      
January 1, 1995 ...........   3,613,035   $36,622   $8,002,299   $(363,939)    $(210,705)     $53,130     $(1,671,946)  $5,845,461
Exercise of options .......      17,000       170       67,830                                                              68,000
Issuance of warrants ......                            202,000                                                             202,000
Maturity and repurchases of
  redeemable common stock .                            627,132                                                             627,132
ESOP payments .............                                                       42,857                                    42,857
Treasury stock purchase ...     (65,524)                          (504,801)                                               (504,801)
Unrealized securities 
  gain ....................                                                                   (53,130)                     (53,130)
Net income ................                                                                                 1,125,226    1,125,226
                             ----------   -------   ----------   ---------     ---------      --------    -----------   ----------
December 31, 1995 .........   3,564,511    36,792    8,899,261    (868,740)     (167,848)             0      (546,720)   7,352,745
Exercise of options
Maturity and repurchases of
  redeemable common stock .                             10,046                                                              10,046
ESOP payments .............                                                       42,857                                    42,857
Treasury stock purchase ...      (1,410)                           (10,046)                                                (10,046)
Sale of securities ........                                                                                                      0
Net income ................                                                                                   616,579      616,579
                             ----------   -------   ----------   ---------     ---------      --------    -----------   ----------
December 31, 1996 .........   3,563,101    36,792    8,909,307    (878,786)     (124,991)             0        69,859    8,012,181
Maturity and repurchases of
  redeemable common 
  stock....................
Treasury stock purchase....
ESOP payments .............                                                       42,857                                    42,857
Net income ................                                                                                    31,752       31,752
                             ----------   -------   ----------   ---------     ---------      --------    -----------   ----------
December 31, 1997 .........   3,563,101    36,792    8,909,307    (878,786)      (82,134)            0        101,611    8,086,790
ESOP payments .............                                                       21,428                                          
Net income ................                                                                                   (19,207)            
                             ----------   -------   ----------   ---------     ---------      --------    -----------   ----------
June 30, 1998 .............  $3,563,101   $36,792   $8,909,307   $(878,786)    $ (60,706)     $      0    $    82,404   $8,089,011
                             ----------   -------   ----------   ---------     ---------      --------    -----------   ----------
                             ----------   -------   ----------   ---------     ---------      --------    -----------   ----------
</TABLE>

                                       
                The accompanying notes are an integral part 
                 of the consolidated financial statements.

                                  Page 5 of 9

<PAGE>

               ARRHYTHMIA RESEARCH TECHNOLOGY, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                           Six Months Ended June 30,
                                                                                          --------------------------
                                                                                             1998            1997
                                                                                          ---------      -----------
<S>                                                                                       <C>            <C>
Cash flows from operating activities:
  Net Income ........................................................................     $ (19,206)     $   247,632
  Provision for Asset Impairment ....................................................       453,529                0
                                                                                          ---------      -----------
  Adjusted Net Income ...............................................................       434,323          247,632

  Adjustments to reconcile net income to net cash provided by operating
  activities:
    Depreciation ....................................................................       330,142          284,981
    Amortization ....................................................................        78,502           74,585
    Deferred Revenue ................................................................             0              259
  Changes in assets and liabilities:
    (Increase) Decrease in Trade and other accounts receivable, net .................       (50,166)       1,690,477
    (Increase) Deposits, prepaid expenses and other current assets ..................      (113,284)        (102,246)
    (Increase) Decrease in Inventories ..............................................       209,401         (178,555)
    (Decrease) in Accounts payable, accrued liabilities and other
     current liabilities.............................................................      (619,841)        (959,010)
    Increase in Income taxes payable ................................................        40,607           23,426
    (Increase) Decrease in Other assets .............................................        (4,057)         205,081
                                                                                          ---------      -----------

Net cash provided by operating activities ...........................................       305,627        1,286,630
                                                                                          ---------      -----------

Cash flows from investing activities:
  Net capital expenditures and fixed asset decrease .................................      (161,566)        (858,834)
  Deposits on capital equipment, acquisitions and other .............................        15,862         (250,000)
  Patent and software development expenditures ......................................       (15,537)         (14,790)
                                                                                          ---------      -----------

    Net cash used in investing activities ...........................................      (161,241)      (1,123,624)
                                                                                          ---------      -----------

Cash flows from financing activities:
  Net repayments of revolving credit facilities .....................................          (430)        (237,102)
  Increase in bonds payable due to amortization .....................................        24,000           24,000
  Reduction of unearned ESOP compensation ...........................................        21,429           21,429
  Principal proceeds on long term debt, net .........................................             0          400,000
  Principal payments on long-term debt, net .........................................      (131,716)        (189,520)
                                                                                          ---------      -----------

    Net cash used in financing activities ...........................................       (86,717)          18,807
                                                                                          ---------      -----------

Net increase (decrease) in cash and cash equivalents ................................        57,669          181,813
Cash and cash equivalents at beginning of period ....................................       214,938          232,135
                                                                                          ---------      -----------

Cash and cash equivalents at end of period ..........................................     $ 272,607      $   413,948
                                                                                          ---------      -----------
                                                                                          ---------      -----------
NON-CASH INVESTING AND FINANCING ACTIVITIES:
   AstroMed acquisition and related note payable ....................................                    $   300,000
   Newmark acquisition and related note payable .....................................                        200,000
                                                                                                         -----------
        Total non-cash activity .....................................................                    $   500,000
                                                                                                         -----------
                                                                                                         -----------
</TABLE>

                 The accompanying notes are an integral part of
                     the consolidated financial statements.

                                 Page 6 of 9
<PAGE>

SUPPLEMENT NOTES TO FINANCIAL STATEMENTS

     The unaudited interim consolidated financial statements and related
notes have been prepared pursuant to the rules and regulations of the
Securities and Exchange Commission. Accordingly, certain information and
footnote disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been omitted
pursuant to such rules and regulations. The accompanying unaudited interim
consolidated financial statements and related notes should be read in
conjunction with the consolidated financial statements and notes thereto
included in the Company's most recent Form 10-K covering the year ended
December 31, 1997.

     The information furnished reflects, in the opinion of the management of
Arrhythmia Research Technology, Inc. ("ART"), all adjustments necessary for a
fair presentation of the financial results for the interim period presented.

     Interim results are subject to year-end adjustments and audit by
independent certified public accountants.

INVENTORIES:

     Inventories consist of the following as of:

<TABLE>
<CAPTION>
                                            June 30,       December 31,
                                              1998             1997
                                          -----------       ----------
<S>                                       <C>              <C>
Raw Materials .......................     $   284,338       $  288,255
Work-in-process .....................         327,966          282,929
Finished goods ......................       1,982,066        2,250,549
                                          -----------       ----------
   Total ............................       2,594,370        2,821,733
Allowance for slow-moving
 inventories.........................      (1,036,648)        (820,610)
                                          -----------       ----------
   Total ............................     $ 1,557,722       $2,001,123
                                          -----------       ----------
                                          -----------       ----------
</TABLE>


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

LIQUIDITY AND CAPITAL RESOURCES

     At June 30, 1998, the Company had working capital of approximately
$2,750,000. At June 30, 1998, the Company had a $3,500,000 working capital
line of credit with a bank, collateralized by accounts receivable and
inventory of ART and Micron Products Inc. ("Micron"), which bears interest at
prime plus .75% (9.25% at June 30, 1998). The working capital line of credit
matures December 15, 1999 and had an outstanding balance of approximately
$467,000 at June 30, 1998. The Company's lines of credit are its primary
source of operating funds and liquidity.

     Capital expenditures during the first six months of 1998 were
approximately $160,000 compared to $859,000 in 1997. Capital expenditures
decreased primarily because Micron completed its wastewater treatment
filtration system in 1997. Capital expenditures are expected to continue to
be lower in 1998. Capital expenditures are funded by operating cash flows.

RESULTS OF OPERATIONS

     REVENUES for the six months ended June 30, 1998 decreased 21% when
compared to the six months ended June 30, 1997. The reason for the reduced
sales is due to an absence of Electrophysiology ("EP") Lab sales this year.
EP Lab sales were $835,847 in the first six months of 1997 verses $0 this
year. 1996 was the final year ART acted as the exclusive distributor for EP
products under its contract with their manufacturer, Prucka Engineering, Inc.
("Prucka"). During 1998, ART will receive a 4% commission on net sales of EP
systems and accessories sold anywhere in the world, up to a ceiling of
$10,000,000 in total

                                 Page 7 of 9

<PAGE>

annual net sales. From January 1, 1999 through December 31, 2002, ART will
receive a commission of 3% of net sales of CardioLab systems sold anywhere in
the world, up to a ceiling of $10,000,000 in total net sales. For revenues
attributable to Prucka products that exceed $10,000,000 in any year, ART will
be entitled to receive 25% of the commission rate in effect that respective
year.

     Revenues from sales of ECG (Electrocardiograph) sensors decreased by 5%
for the six months ending June 30, 1998 as compared to 1997. The sales mix
for the Company continues with ECG sensors making up a greater proportion of
sales and the related cost of sales.

<TABLE>
<CAPTION>
                       SECOND QUARTER                                  FIRST SIX MONTHS
                1998         %         1997         %         1998         %         1997         %
             ----------     ---     ----------     ---     ----------     ---     ----------     ---
<S>          <C>            <C>     <C>            <C>     <C>            <C>     <C>            <C>
Domestic     $1,446,816      51     $1,625,218      57     $2,804,291      53     $4,262,107      63
Foreign       1,398,416      49      1,204,392      43      2,470,053      47      2,441,034      37
             ----------     ---     ----------     ---     ----------     ---     ----------     ---
Total        $2,845,232     100     $2,829,610     100     $5,274,344     100     $6,703,141     100
             ----------     ---     ----------     ---     ----------     ---     ----------     ---
             ----------     ---     ----------     ---     ----------     ---     ----------     ---
</TABLE>


     COST OF SALES decreased 30% for the six months ended June 30, 1998,
compared to the same period in 1997 because of the absence of EP sales noted
above and the absence of the K-3 Cath Lab sales. K-3 Cath Lab sales in the
first six months of 1997 were $177,000, related cost of sales were $117,000,
compared to $0 sales and cost of sales in the same period of 1998.

     SELLING AND MARKETING expenses decreased 41% compared to the same period
in 1997 due to lower sales activity. The primary components of selling and
marketing are salaries and tradeshow expenses. The continuing level of these
expenses is expected to be somewhat lower.

     GENERAL AND ADMINISTRATIVE remained consistent in the first six months
of 1998 compared to 1997. The primary components of general and
administrative expenses are salaries and related payroll taxes and benefits,
environmental monitoring expenses, professional fees and insurance costs. Due
to the consolidation of the Austin operation with Micron, (See "Provision for
Asset Impairments" below), it is expected that general and administrative
expenses will decrease.

     RESEARCH AND DEVELOPMENT expenses for the first six months in 1998
increased by 72% compared to the same period in 1997 due to an increase in
software development costs related to Windows software projects for the K-3
Cath Lab and Predictor I and Predictor II units.

     PROVISION FOR ASSET IMPAIRMENTS. In the second quarter of 1998, ART made
a provision of $453,529 to write off goodwill relating to the Astro-Med
acquisition ($172,201), to increase the inventory reserve of the K-3 Cath Lab
inventory ($131,328), to increase the inventory reserve for SAECG inventory
($130,000), and to reflect certain costs associated with reducing and
consolidating the Austin operation with Micron, ($20,000). The per share
effect, after taxes, was a charge of $.08 per share and without the
provision, operating results would have been reported as earnings per share
of $.05.

SAFE HARBOR UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.

Forward looking statements made herein are based on current expectations of
the Company that involve a number of risks and uncertainties and should not
be considered as guarantees of future performance. These statements are made
under the Safe Harbor Provisions of the Private Securities Litigation Reform
Act of 1995. The factors that could cause actual results to differ materially
include: interruptions or cancellation of existing contracts, impact of
competitive products and pricing, product demand and market acceptance risks,
the presence of competitors with greater financial resources than the
Company, product development and commercialization risks and an inability to
arrange additional debt or equity financing.

                                 Page 8 of 9
<PAGE>

PART II - OTHER INFORMATION



ITEM 1.  LEGAL PROCEEDINGS - NONE

ITEM 2.  CHANGES IN SECURITIES - NONE

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES - NONE

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS - NONE

ITEM 5.  OTHER INFORMATION - NONE

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K - NONE


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                       Arrhythmia Research Technology, Inc.
                                       ------------------------------------





                                       /s/  Anthony A. Cetrone,

                                       President, Micron Products Inc.
                                       Chairman of the Board

August 11, 1998



                                 Page 9 of 9