<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 SEPTEMBER 30, 1997 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 November 6, 1997 there were 3,563,101 shares of common stock outstanding.

This report consists of 10 pages.

<PAGE>

              ARRHYTHMIA RESEARCH TECHNOLOGY, INC. AND SUBSIDIARY

                  INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

                                  FORM 10-Q
September 30, 1997

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. . . . . . . . . . . . . . . . . . . . . .  8

PART II - OTHER INFORMATION. . . . . . . . . . . . . . . . . . . . . . . 10

  Item 1.  Legal Proceedings - none. . . . . . . . . . . . . . . . . . . 11
  Item 2.  Changes in Securities - none. . . . . . . . . . . . . . . . . 11
  Item 3.  Defaults Upon Senior Securities - none. . . . . . . . . . . . 11
  Item 4.  Submission of Matters to a Vote of Security Holders - none. . 11
  Item 5.  Other Information - none. . . . . . . . . . . . . . . . . . . 11
  Item 6.  Exhibits and Reports on Form 8-K - none . . . . . . . . . . . 11
  SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11




                                 Page 2 of 11

<PAGE>

ITEM 1.  FINANCIAL STATEMENTS

         ARRHYTHMIA RESEARCH TECHNOLOGY, INC. AND SUBSIDIARY
                     CONSOLIDATED BALANCE SHEETS            
                                                  (Unaudited)
                                                 September 30,     December 31,
                      ASSETS                         1997              1996
                                                 -------------     ------------
Current assets:
  Cash and cash equivalents. . . . . . . . .      $   572,393      $   232,135
  Trade accounts receivable. . . . . . . . .        2,538,074        4,447,624
  Inventories. . . . . . . . . . . . . . . .        2,093,113        2,238,436
  Deposits, prepaid expenses and other 
    current assets . . . . . . . . . . . . .          209,261          164,879
                                                  -----------      -----------
    Total current assets . . . . . . . . . .        5,412,841        7,083,074

Property and equipment . . . . . . . . . . .        4,546,906        3,177,862
Patent, software development costs . . . . .           93,000           99,613
Goodwill . . . . . . . . . . . . . . . . . .        1,911,310        1,818,625
Deferred income taxes. . . . . . . . . . . .          493,767          493,767
Other. . . . . . . . . . . . . . . . . . . .           70,519          291,298
                                                  -----------      -----------
    Total assets . . . . . . . . . . . . . .      $12,528,343      $12,964,239
                                                  -----------      -----------
                                                  -----------      -----------
          LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
  Revolving credit facilities. . . . . . . .      $   711,763      $ 1,158,660
  Current maturities of long-term debt . . .          104,940          256,327
  Accounts payable . . . . . . . . . . . . .        1,111,325        2,390,188
  Income taxes payable . . . . . . . . . . .          147,785           34,161
  Payable to related parties . . . . . . . .     
  Accrued liabilities. . . . . . . . . . . .          474,618          353,101
                                                  -----------      -----------
    Total current liabilities. . . . . . . .        2,550,431        4,192,437

Bonds payable. . . . . . . . . . . . . . . .        1,477,915          671,915
Deferred revenue . . . . . . . . . . . . . .           58,484           87,706
                                                  -----------      -----------
    Total liabilities. . . . . . . . . . . .        4,086,830        4,952,058
                                                  -----------      -----------
Commitments & Contingencies. . . . . . . . .               -               -  

Shareholders' equity:
  Serial preferred stock . . . . . . . . . .               -               -  
  Common stock, $.01 par value; 10,000,000 
      shares authorized; 3,679,216 issued. .           36,792           36,792
Additional paid-in-capital . . . . . . . . .        8,909,307        8,909,307
Treasury stock, 116,115 shares at cost . . .         (878,786)        (878,786)
Unearned ESOP compensation . . . . . . . . .          (92,848)        (124,991)
Retained earnings. . . . . . . . . . . . . .          467,048           69,859
                                                  -----------      -----------
    Total shareholders' equity . . . . . . .        8,441,513        8,012,181
                                                  -----------      -----------
    Total liabilities and shareholders' equity    $12,528,343      $12,964,239
                                                  -----------      -----------
                                                  -----------      -----------

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

                                 Page 3 of 11


<PAGE>

               ARRHYTHMIA RESEARCH TECHNOLOGY, INC. AND SUBSIDIARY
                        CONSOLIDATED STATEMENTS OF OPERATIONS

<TABLE>
                                         Three Months Ended September 30,    Nine Months Ended September 30,  
                                         --------------------------------    -------------------------------  
                                              1997                1996            1997             1996       
                                         ------------       ------------     ------------     -------------   
<S>                                      <C>                <C>              <C>              <C>
Net sales. . . . . . . . . . . . . . . . $  2,825,939       $  6,464,147     $  9,529,080     $  18,567,323   
Cost of sales. . . . . . . . . . . . . .    1,655,159          5,112,182        6,177,775        14,962,270   
                                         ------------       ------------     ------------     -------------   
Gross profit . . . . . . . . . . . . . .    1,170,780          1,351,965        3,351,305         3,605,053   
                                         ------------       ------------     ------------     -------------   
Selling and marketing. . . . . . . . . .      161,906            159,779          473,773           456,873   
General and administrative . . . . . . .      544,601            541,433        1,684,480         1,692,823  
Research and development . . . . . . . .      133,130             41,368          256,426           126,596  
Amortization of goodwill . . . . . . . .       31,800             28,716           92,315            86,148  
                                         ------------       ------------     ------------     -------------   
Total expenses . . . . . . . . . . . . .      871,437            771,296        2,506,994         2,362,440  
                                         ------------       ------------     ------------     -------------   
Income from operations . . . . . . . . .      299,343            580,669          844,311         1,242,613  

Other income (expense):
  Interest expense . . . . . . . . . . .      (64,664)           (67,338)        (176,857)         (211,733)  
  Other. . . . . . . . . . . . . . . . .         (521)            (3,953)          (6,189)           (7,313)  
                                         ------------       ------------     ------------     -------------   
Income before income taxes . . . . . . .      234,158            509,378          661,265         1,023,567  
Income taxes . . . . . . . . . . . . . .      (84,601)          (227,632)        (264,076)         (496,609)  
                                         ------------       ------------     ------------     -------------   
Net income . . . . . . . . . . . . . . . $    149,557       $    281,746     $    397,189     $     526,958  
                                         ------------       ------------     ------------     -------------   
                                         ------------       ------------     ------------     -------------   
Net income per share . . . . . . . . . . $       0.04       $       0.08     $       0.11     $        0.15  
                                         ------------       ------------     ------------     -------------   
                                         ------------       ------------     ------------     -------------   
Weighted average number of common
  and dilutive common equivalent
  shares outstanding . . . . . . . . . .    3,563,101          3,563,101        3,563,101         3,563,414
                                         ------------       ------------     ------------     -------------   
                                         ------------       ------------     ------------     -------------   
</TABLE>

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

                                       
                                 Page 4 of 11

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

<TABLE>
                                                                                               Net          Retained           
                                      Common Shares     Additional              Unearned    Unrealized      Earnings           
                                   ------------------     Paid-in    Treasury     ESOP      Securities   (Accumulated         
                                     Number    Amount     Capital     Stock    Compensation    Gains        Deficit)       Total
                                   ---------  -------   ----------  ---------  ------------  ---------    -----------   ----------
<C>                                <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
ESOP payments. . . . . . . . . .                                                   32,143                                   32,143
Net income . . . . . . . . . . .                                                                              397,189      397,189
                                   ---------  -------   ----------  ---------  ------------  ---------    -----------   ----------
September 30, 1997 . . . . . . .   3,563,101  $36,792   $8,909,307  $(878,786)  $  92,848    $      0     $   467,048   $8,441,513
                                   ---------  -------   ----------  ---------  ------------  ---------    -----------   ----------
                                   ---------  -------   ----------  ---------  ------------  ---------    -----------   ----------
</TABLE>
                                       
               The accompanying notes are an integral part of 
                   the consolidated financial statements.

                                 Page 5 of 11
<PAGE>
                                       
               ARRHYTHMIA RESEARCH TECHNOLOGY, INC. AND SUBSIDIARY
                     CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
                                                     Nine Months Ended September 30,
                                                     -------------------------------
                                                           1997          1996
                                                        -----------   ----------
<S>                                                  <C>              <C>
Cash flows from operating activities:
  Net income . . . . . . . . . . . . . . . . . . . .    $   397,189   $  526,958
  Adjustments to reconcile net income to net 
   cash provided by operating activities:
    Depreciation . . . . . . . . . . . . . . . . . .        438,433      333,604
    Amortization . . . . . . . . . . . . . . . . . .        113,719      115,555
  Changes in assets and liabilities:
    Trade and other accounts receivable, net . . . .      1,909,550     (995,430)
    Deposits, prepaid expenses and other 
      current assets . . . . . . . . . . . . . . . .        (44,382)       4,000
    Inventories, net of effect of acquisition 
      of $165,000. . . . . . . . . . . . . . . . . .        310,323    1,018,040
    Accounts payable and accrued liabilities . . . .     (1,157,346)    (291,629)
    Income taxes payable . . . . . . . . . . . . . .        113,624      239,045
    Bonds and accrued interest payable . . . . . . .         36,000
    Deferred revenue . . . . . . . . . . . . . . . .        (29,222)      44,722
    Payable to related parties . . . . . . . . . . .                     (30,899)
    Other assets . . . . . . . . . . . . . . . . . .        220,779      123,075
                                                        -----------   ----------
Net cash provided by operating activities. . . . . .      2,308,667    1,087,041
                                                        -----------   ----------
Cash flows from investing activities:
  Capital expenditures . . . . . . . . . . . . . . .     (1,407,477)    (584,458)
  Astro-Med acquisition. . . . . . . . . . . . . . .        (50,000)
  Newmark acquisition. . . . . . . . . . . . . . . .       (200,000)
  Patent and software development expenditures . . .        (14,791)     (15,718)
                                                        -----------   ----------
    Net cash used in investing activities. . . . . .     (1,672,268)    (600,176)
                                                        -----------   ----------
Cash flows from financing activities:
  Net repayments of revolving credit facilities. . .       (446,897)    (454,374)
  Purchase of treasury stock . . . . . . . . . . . .                     (10,047)
  Reduction of unearned ESOP compensation. . . . . .         32,143       32,143
  Principal proceeds on long term debt, net. . . . .        400,000
  Principal payments on long-term debt, net. . . . .       (281,387)    (294,870)
                                                        -----------   ----------
    Net cash used in financing activities. . . . . .       (296,141)    (727,148)
                                                        -----------   ----------
Net increase (decrease) in cash and 
    cash equivalents . . . . . . . . . . . . . . . .        340,258     (240,283)
Cash and cash equivalents at beginning of period . .        232,135      397,799
                                                        -----------   ----------

Cash and cash equivalents at end of period . . . . .    $   572,393   $  157,516
                                                        -----------   ----------
                                                        -----------   ----------

NON-CASH INVESTING AND FINANCING ACTIVITIES:
     Astro-med 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 11

<PAGE>

            ARRHYTHMIA RESEARCH TECHNOLOGY, INC. AND SUBSIDIARY
          SUPPLEMENTAL NOTES TO CONSOLIDATED 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 Arrhythmia 
Research Technology, Inc.'s ("ART" or the "Company") most recent Form 10-K 
covering the year ended December 31, 1996.

The information furnished reflects, in the opinion of the management of the 
Company, 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 an audit by independent certified public accountants.

INVENTORIES:

     Inventories consist of the following as of:

                                   SEPTEMBER 30,        DECEMBER 31,
                                       1997                 1996
                                   -------------        ------------
     Raw materials . . . . . . .    $  249,565          $  320,736
     Work-in-process . . . . . .       335,206             354,838
     Finished goods. . . . . . .     2,394,619           2,475,814
                                    ----------          ----------
                                     2,979,390           3,151,388
     Allowance for slow-moving 
        inventories. . . . . . .      (886,277)           (912,952)
                                    ----------          ----------
           Total . . . . . . . .    $2,093,113          $2,238,436
                                    ----------          ----------
                                    ----------          ----------

RECENT PRONOUNCEMENTS:

In February of 1997, the Financial Accounting Standards Board issued 
Statement of Financial Accounting Standards No. 128 "Earnings Per Share" 
("SFAS No. 128") which establishes standards for computing and presenting 
earnings per share. SFAS No. 128 is effective for fiscal years ending after 
December 15, 1997. Management does not believe the implementation of SFAS No. 
128 will have a material effect on its financial statements.

In February 1997, the FASB issued Statement of Financial Accounting Standards 
No. 129 "Disclosure of Information About Capital Structure" ("SFAS No. 129") 
which establishes disclosure requirements for an entity's capital structure. 
SFAS No. 129 is effective for fiscal years ending after December 15, 1997. 
Management does not believe the implementation of SFAS No. 129 will have a 
material effect on its financial statements.  

In June 1997, the FASB issued SFAS No. 130, "Reporting Comprehensive Income," 
which establishes standards for reporting and display of comprehensive income 
and its components in a full set of general-purpose financial statements.  
SFAS No. 130 is effective for fiscal years beginning after December 15, 1997.

Also in June 1997, the FASB issued SFAS No. 131, "Disclosures about Segments 
of an Enterprise and Related Information," which establishes standards for 
the way the public business enterprises report information about operating 
segments in annual financial statements and requires that those enterprises 
report selected information about operating segments in interim financial 
reports issued to shareholders.  It also establishes standards for related 
disclosures about products and services, geographic areas, and major 
customers.  SFAS No. 131 is effective for financial statements for periods 
beginning after December 15, 1997.
                                       
                                  Page 7 of 11
<PAGE>

                ARRHYTHMIA RESEARCH TECHNOLOGY, INC. AND SUBSIDIARY
           SUPPLEMENTAL NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

PRODUCT LINE ACQUISITIONS:

In the second quarter of 1997, ART acquired the K-3 product family of 
hemodynamic systems for the cath lab from Astro-Med, Inc.  ART has been the 
exclusive distributor of the K-3 product family in the U.S., Canada, Eastern 
Block countries and Russia since December, 1995. The K-3 cath lab product 
line will now be sold worldwide by ART.  It is a fully optioned, competitive 
state-of-the-art system with a price benchmark significantly less than 
similar systems on the market. The system is currently installed in locations 
overseas and in the U.S.  ART's gross margins on K-3 sales will improve over 
margins under the previous distribution agreement.  In addition, ART has 
contracted with a third party developer to convert the K-3 operating software 
from a DOS platform to a Windows platform in order to respond to changes in 
the marketplace and meet customer needs.   Completion of this software 
conversion is expected in the first quarter of 1998.

ART'S Micron Products Inc. ("Micron") subsidiary acquired a product line from 
Newmark related to its high-speed electrode assembly machines.  Newmark will 
continue to manufacture and service the machines for one year.  The 
acquisition of this product line is consistent with ART's long-term growth 
strategy into related product and market areas.

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

     LIQUIDITY AND CAPITAL RESOURCES             

As of September 30, 1997, the Company had working capital of approximately 
$2,862,000 and a $3,500,000 working capital line of credit with a commercial 
bank, collateralized by accounts receivable and inventory of ART and Micron, 
bearing interest at prime plus .75% (9.25% at September 30, 1997).  The 
working capital line of credit matures December 15, 1999 and had an 
outstanding balance of approximately $712,000 at September 30, 1997.  For the 
nine months ended September 30, 1997, the Company generated positive 
operating cash flows of approximately $2,309,000 as compared to positive 
operating cash flows of approximately $1,087,000 for the nine months ended 
September 30, 1996.  The increase in operating cash flows has been driven 
primarily by improved collections on trade and other accounts receivable.

Capital expenditures excluding assets acquired in asset purchase agreements 
during the first nine months of 1997 were approximately $1,407,000 compared 
to approximately $584,000 in 1996. Capital expenditures have increased in the 
first nine months of 1997 compared to 1996 as a result of additional 
equipment acquired by Micron in the installation of a waste-water treatment 
and filtration system completed in the second quarter.    Capital 
expenditures are expected to be higher in 1997 than they were in 1996.  
Normal capital expenditures are funded from operating cash flows and capital 
projects, such as the new waste-water treatment and filtration system, are 
typically financed through long term debt.  The waste-water treatment 
facility equipment was purchased at a cost of $480,000 of which $400,000 was 
financed by a bank facility.   This note is payable in equal monthly 
installments over four years and bears interest at a rate of prime plus .75% 
(9.25% at September 30, 1997).

The Astro-Med and Newmark product line acquisitions were financed in part 
through seller originated notes of $300,000 and $200,000 respectively.  The 
Astro-Med note bears interest at a rate of 8% per annum with quarterly 
interest only payments in the first year beginning on June 30, 1997.  
Principal and interest payments are due quarterly thereafter to amortize the 
note in full by the April 30, 2000.  The promissory note with Newmark is 
non-interest bearing and is payable in twenty equal installments beginning in 
May 1997.
                                       
                                 Page 8 of 11
<PAGE>

               ARRHYTHMIA RESEARCH TECHNOLOGY, INC. AND SUBSIDIARY
        SUPPLEMENTAL NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

     RESULTS OF OPERATIONS

REVENUES for the three months ended September 30, 1997 decreased 56% when 
compared to the same period in the prior year, and revenues for the nine 
months ended September 30, 1997 decreased approximately 49% as compared to 
the same period in the prior year.  The reason for the reduced sales revenue 
is that 1996 was the final year in which ART acted as the exclusive 
distributor for CardioLab products under its contract with their 
manufacturer, Prucka Engineering, Inc. For 1997, ART has not reported the 
gross revenues nor the related cost of sales for CardioLab products except 
for certain carry over orders shipped in 1997 of approximately $872,000.  
CardioLab product sales and cost of sales approximated $10,741,000 and 
$9,869,000, respectively for the nine months ended September 30, 1996.  
During 1997 and 1998, ART will receive a 4% commission on net sales of 
CardioLab systems and accessories sold anywhere in the world, up to a ceiling 
of $10,000,000 in total annual net sales.   From January 1, 1999 through 
December 31, 2002, ART will receive a commission of 3% of the net sales of 
CardioLab systems sold anywhere in the world, up to a ceiling of $10,000,000 
in total net sales.  ART will receive 25% of the commissions it would 
otherwise be entitled to receive for revenues attributable to CardioLab sales 
that exceed $10,000,000 in any given year. 

Revenues from sales of ECG sensors increased 3% for the nine months ended 
September 30, 1997, as compared to the same period in 1996.  The increase in 
sensor sales is due to increased demand in the international market.  Pricing 
on all products remained approximately the same for the third quarter and 
first nine months of 1997 as compared to 1996.  The sales mix for the Company 
has changed with ECG sensors making up a greater proportion of sales and the 
related cost of sales, as a result of the reduction in CardioLab sales.  For 
the nine months ended September 30, 1997, ECG sensor sales accounted for 
approximately 77% of total sales as compared to 39% for the nine months ended 
September 30, 1996.

The following table sets forth the domestic and foreign sales of the Company:

<TABLE>
                                   THIRD QUARTER                          FIRST NINE MONTHS
                        ------------------------------------    -------------------------------------
                            1997      %        1996       %        1997       %        1996        %
                        ----------------    ----------------    ----------------    -----------------
<S>                     <C>          <C>    <C>          <C>    <C>          <C>    <C>           <C>
Domestic . . . . . .    $1,661,007    59    $4,452,075    69    $5,867,785    62    $12,328,202    66
Foreign. . . . . . .     1,164,932    41     2,012,072    31     3,661,295    38      6,239,121    34
                        ----------   ---    ----------   ---    ----------   ---    -----------   ---
Total. . . . . . . .    $2,825,939   100    $6,464,147   100    $9,529,080   100    $18,567,323   100
                        ----------   ---    ----------   ---    ----------   ---    -----------   ---
                        ----------   ---    ----------   ---    ----------   ---    -----------   ---
</TABLE>

COST OF SALES for the quarter and nine months ended September 30, 1997 
decreased 68% and 59%, respectively, as compared to the same periods in 1996, 
because of significant improvements of silver yields in the manufacturing of 
ECG sensors and the reduced CardioLab sales as noted above.  These lower 
costs were partially offset by increased overhead costs which have increased 
due to higher maintenance and utility costs.  The increased costs were in 
preparation for an ISO 9001 certification, which will be obtained in the 
fourth quarter.   Cost of sales as a percent of sales is expected to remain 
similar for the remainder of the year.

SELLING AND MARKETING expenses as a percent of sales have increased 130% and 
100% for the quarter and nine months ended September 30, 1997, compared to 
the third quarter and first nine months of 1996.  The percentage increases 
are due primarily to reduced CardioLab sales as noted above. The primary 
components of marketing and selling expenses for the nine months ended 
September 30, 1997 are salaries and trade show expenses.  The current level 
of marketing operations is expected to continue to increase for the remainder 
of the year as a result of the acquisition of the K-3 product line and 
increased worldwide marketing and sales efforts.   
                                       
                                 Page 9 of 11
<PAGE>

                ARRHYTHMIA RESEARCH TECHNOLOGY, INC. AND SUBSIDIARY
          SUPPLEMENTAL NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED

     RESULTS OF OPERATIONS, CONTINUED

GENERAL AND ADMINISTRATIVE expenses have decreased slightly for the nine 
months ended September 30, 1997, as compared to 1996 primarily because of 
lower administrative costs.  These lower costs are in part offset by 
increased environmental monitoring expenses.   The primary components of 
general and administrative expenses are salaries and related payroll taxes 
and benefits, environmental monitoring expenses, professional fees, and 
insurance costs. General and administrative expenses are expected to continue 
at this level for the remainder of the year.

RESEARCH AND DEVELOPMENT expenses have increased 230% for the quarter and 
100% for the nine months ended September 30, 1997, as compared to the same 
periods in 1996.  The increases are due primarily to higher outside 
consulting fees and software development expenses.  The thrust of the 
research and development effort is to develop new software applications for 
existing signal averaging products, new products utilizing the patented 
Simson method of signal averaging, and upgrading the K-3 operating software 
from a DOS platform to a Windows platform.


     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: interruption 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 10 of 11
<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/ Sid Barbanel
SID BARBANEL,
President and Chief Executive Officer



/s/ Anthony A. Cetrone
ANTHONY A. CETRONE,                          
President, Micron Products Inc.
Chairman of the Board

November 6, 1997



                                       
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