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

Item1.  Consolidated Financial Statements

Consolidated BalanceSheets

Consolidated Statements ofIncome

Consolidated Statements ofCash Flows

Notes tothe Consolidated Financial Statements

Item2.  Management's Discussion and Analysis of Financial Condition andResults of Operations

Item 3.Quantitative and Qualitative Disclosure About MarketRisks

Item 4.Controls and Procedures

PART II- OTHER INFORMATION

Item1A. Risk Factors

Item6.  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    |
| Exhibit | 99.1   | Press release dated October 6, 2008, re stock      buyback program.                                     | X-5    |

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PART I - FINANCIAL INFORMATION

Item 1.  Consolidated Financial Statements

ARRHYTHMIA RESEARCH TECHNOLOGY, INC. ANDSUBSIDIARY

| ASSETS                                                                                                               |   | September      30, 2008 |       |   | December      31,2007 |   |
|----------------------------------------------------------------------------------------------------------------------|--------|-------------------------|------------|--------|-----------------------|--------|
|                                                                                                                 |   | (Unaudited)             |       |   | (Audited)             |   |
| Current      assets:                                                                                                 |   |                    |       |   |                  |   |
| Cash and cash      equivalents                                                                                       |   | $                       | 2,062,770  |   |                  | $      | 1,684,411 |   |
| Trade and other accounts      receivable, net of allowance fordoubtful accounts of $48,367      and $49,830          |   |                    | 3,890,856  |   |                  |   | 2,759,491 |   |
| Inventories, net                                                                                                     |   |                    | 3,704,398  |   |                  |   | 3,001,520 |   |
| Deferred income taxes,      net                                                                                      |   |                    | 46,000     |   |                  |   | 46,000 |   |
| Deposits, prepaid expenses and      other current assets                                                             |   |                    | 851,858    |   |                  |   | 926,970 |   |
| Total current      assets                                                                                            |   |                    | 10,555,882 |   |                  |   | 8,418,392 |   |
|                                                                                                                 |   |                    |       |   |                  |   |   |   |
| Property      and equipment, net of accumulated depreciation of$8,773,888 and      $7,872,887                        |   |                    | 7,300,881  |   |                  |   | 7,610,258 |   |
| Goodwill                                                                                                             |   |                    | 1,564,966  |   |                  |   | 1,564,966 |   |
| Other      intangible assets, net                                                                                    |   |                    | 160,652    |   |                  |   | 221,482 |   |
| Other      assets                                                                                                    |   |                    | 3,036      |   |                  |   | 24,785 |   |
| Total assets                                                                                                         |   | $                       | 19,585,417 |   |                  | $      | 17,839,883 |   |
|                                                                                                                 |   |                    |       |   |                  |   |   |   |
| LIABILITIES      AND SHAREHOLDERS’ EQUITY                                                                      |   |                    |       |   |                  |   |   |   |
|                                                                                                                 |   |                    |       |   |                  |   |   |   |
| Current      liabilities:                                                                                            |   |                    |       |   |                  |   |   |   |
| Accounts payable                                                                                                     |   | $                       | 2,070,863  |   |                  | $      | 633,413 |   |
| Accrued expenses                                                                                                     |   |                    | 429,888    |   |                  |   | 352,194 |   |
| Current portion of acquisition      note payable                                                                     |   |                    | -          |   |                  |   | 134,083 |   |
| Short term loan      payable                                                                                         |   |                    | 661,164    |   |                  |   | 735,655 |   |
| Total current      liabilities                                                                                       |   |                    | 3,161,915  |   |                  |   | 1,855,345 |   |
| Long      term liabilities:                                                                                          |   |                    |       |   |                  |   |   |   |
| Long      term deferred tax liability                                                                                |   |                    | 149,000    |   |                  |   | 139,000 |   |
| Total long term      liabilities                                                                                     |   |                    | 149,000    |   |                  |   | 139,000 |   |
|                                                                                                                 |   |                    |       |   |                  |   |   |   |
| Total    liabilities                                                                                                 |   |                    | 3,310,915  |   |                  |   | 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                                                                                      |   |                    | 10,220,673 |   |                  |   | 10,143,339 |   |
| Common stock held in treasury,      1,214,811 shares at cost                                                         |   |                    | (3,326,579 | )      |                  |   | (3,326,579 | ) |
| Retainedearnings                                                                                                     |   |                    | 9,341,143  |   |                  |   | 8,989,513 |   |
| Total shareholders’      equity                                                                                |   |                    | 16,274,502 |   |                  |   | 15,845,538 |   |
| Total liabilities and      shareholders’ equity                                                                |   | $                       | 19,585,417 |   |                  | $      | 17,839,883 |   |
|                                                                                                                 |   |                    |       |   |                  |   |   |   |

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ARRHYTHMIA RESEARCH TECHNOLOGY, INC. ANDSUBSIDIARY

|                                                                |   | Three months endedSeptember 30, |      | Nine months endedSeptember 30, |
|---------------------------------------------------------------------|--------|---------------------------------|-----------|--------------------------------|
|                                                                |   | 2008                            |      | 2007                           |   | 2008 |   | 2007 |
| Revenue                                                             |   | $                               | 5,838,390 |                           |   | $ | 4,457,688 |   |   | $ | 17,724,252 |   |   | $ | 14,867,182 |   |
| Cost      of sales                                                  |   |                            | 4,996,830 |                           |   |   | 3,203,293 |   |   |   | 14,424,783 |   |   |   | 11,280,833 |   |
| Gross profit                                                        |   |                            | 841,560   |                           |   |   | 1,254,395 |   |   |   | 3,299,469 |   |   |   | 3,586,349 |   |
|                                                                |   |                            |      |                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling      and marketing                                          |   |                            | 200,887   |                           |   |   | 209,459 |   |   |   | 615,915 |   |   |   | 570,923 |   |
| General      and administrative                                     |   |                            | 521,548   |                           |   |   | 574,865 |   |   |   | 1,917,496 |   |   |   | 1,630,776 |   |
| Research      and development                                       |   |                            | 35,682    |                           |   |   | 14,594 |   |   |   | 248,355 |   |   |   | 44,971 |   |
| Total expense                                                       |   |                            | 758,117   |                           |   |   | 798,918 |   |   |   | 2,781,766 |   |   |   | 2,246,670 |   |
|                                                                |   |                            |      |                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Income from      operations                                         |   |                            | 83,443    |                           |   |   | 455,477 |   |   |   | 517,703 |   |   |   | 1,339,679 |   |
| Other      income (expense), net                                    |   |                            | (5,304    | )                              |   |   | (1,935 | ) |   |   | (6,073 | ) |   |   | (11,957 | ) |
| Income      before income taxes                                     |   |                            | 78,139    |                           |   |   | 453,542 |   |   |   | 511,630 |   |   |   | 1,327,722 |   |
|                                                                |   |                            |      |                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      tax provision                                           |   |                            | 10,000    |                           |   |   | 33,000 |   |   |   | 160,000 |   |   |   | 227,000 |   |
| Net income                                                          |   | $                               | 68,139    |                           |   | $ | 420,542 |   |   | $ | 351,630 |   |   | $ | 1,100,722 |   |
|                                                                |   |                            |      |                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income per share – basic                             |   | $                               | 0.03      |                           |   | $ | 0.16 |   |   | $ | 0.13 |   |   | $ | 0.41 |   |
| Net      income per share – diluted                           |   | $                               | 0.03      |                           |   | $ | 0.15 |   |   | $ | 0.12 |   |   | $ | 0.40 |   |
| Weighted      average common sharesoutstanding –    basic     |   |                            | 2,711,680 |                           |   |   | 2,711,680 |   |   |   | 2,711,680 |   |   |   | 2,709,973 |   |
| Weighted      average common sharesoutstanding –      diluted |   |                            | 2,712,481 |                           |   |   | 2,765,103 |   |   |   | 2,926,089 |   |   |   | 2,785,411 |   |

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ARRHYTHMIA RESEARCH TECHNOLOGY, INC. ANDSUBSIDIARY

|                                                                                       |   | Nine      months EndedSeptember      30, |       |
|--------------------------------------------------------------------------------------------|--------|------------------------------------------|------------|
|                                                                                       |   | 2008                                     |       | 2007 |
| Cash      flows from operating activities:                                                 |   |                                     |       |   |   |   |
| Net income                                                                                 |   | $                                        | 351,630    |   |   | $ | 1,100,722 |   |
|                                                                                       |   |                                     |       |   |   |   |   |   |
| Adjustments      to reconcile net income to net cashprovided      by operating activities: |   |                                     |       |   |   |   |   |   |
| Depreciation and      amortization                                                         |   |                                     | 1,044,334  |   |   |   | 837,163 |   |
| Provision for doubtful      accounts                                                       |   |                                     | (1,463     | ) |   |   | 20,000 |   |
|          Deferred Income tax provision                                      |   |                                     | 10,000     |   |   |   | - |   |
| Share based      compensation                                                              |   |                                     | 77,334     |   |   |   | 32,325 |   |
| Changes in operating assets and      liabilities:                                          |   |                                     |       |   |   |   |   |   |
| Trade and other accounts      receivable                                                   |   |                                     | (1,129,902 | ) |   |   | (100,419 | ) |
| Inventories                                                                                |   |                                     | (702,878   | ) |   |   | (690,523 | ) |
| Deposits, prepaid expenses and      other assets                                           |   |                                     | 96,861     |   |   |   | (157,182 | ) |
| Accounts payable and accrued      expenses                                                 |   |                                     | 1,515,144  |   |   |   | 256,282 |   |
| Net cash provided by operating      activities                                             |   |                                     | 1,261,060  |   |   |   | 1,499,206 |   |
|                                                                                       |   |                                     |       |   |   |   |   |   |
| Cash      flows from investing activities:                                                 |   |                                     |       |   |   |   |   |   |
| Capital expenditures, net of      disposals                                                |   |                                     | (674,127   | ) |   |   | (1,417,210 | ) |
| Net cash used in investing      activities                                                 |   |                                     | (674,127   | ) |   |   | (1,417,210 | ) |
|                                                                                       |   |                                     |       |   |   |   |   |   |
| Cash      flows from financing activities:                                                 |   |                                     |       |   |   |   |   |   |
| Payments on acquisition note      payable                                                  |   |                                     | (134,083   | ) |   |   | (45,747 | ) |
| Payments on short term      equipment loan (obligation)                                    |   |                                     | (74,491    | ) |   |   | - |   |
| 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                                   |   |                                     | (208,574   | ) |   |   | 46,962 |   |
|                                                                                       |   |                                     |       |   |   |   |   |   |
| Net      increase in cash and cash equivalents                                             |   |                                     | 378,359    |   |   |   | 128,958 |   |
|                                                                                       |   |                                     |       |   |   |   |   |   |
| Cash      and cash equivalents at beginning of period                                      |   |                                     | 1,684,411  |   |   |   | 2,065,645 |   |
| Cash      and cash equivalents at end of period                                            |   | $                                        | 2,062,770  |   |   | $ | 2,194,603 |   |
|                                                                                       |   |                                     |       |   |   |   |   |   |
|                                                                                       |   |                                     |       |   |   |   |   |   |

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Notes to theConsolidated Financial Statements

| Inventories      consist of the following as of: |   | September      30,2008 |      | December      31, 2007 |
|--------------------------------------------------|--------|------------------------|-----------|------------------------|
| Raw materials                                    |   | $                      | 1,545,244 |                   |   | $ | 872,758 |   |
| Work-in-process                             |   |                   | 633,736   |                   |   |   | 538,309 |   |
| Finished goods                                   |   |                   | 1,525,418 |                   |   |   | 1,590,453 |   |
|      Total              |   | $                      | 3,704,398 |                   |   | $ | 3,001,520 |   |

|                                  |   | Nine      months Ended September 30, |   |
|---------------------------------------|--------|--------------------------------------|--------|
|                                  |   | 2008                                 |   | 2007 |
| Dividend      Yield                   |   |                                 | 0%     |   |   |   | 0.44% |   |
| Expected      Volatility              |   |                                 | 40.65% |   |   |   | 43% |   |
| Risk      Free Interest Rate          |   |                                 | 3.28%  |   |   |   | 5.5% |   |
| Expected      Option Terms (in years) |   |                                 | 4.5    |   |   |   | 6 |   |

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| ExercisePrice |   | Number      ofOutstandingShares |   | Weighted      AverageRemaining      ContractualLife      (years) |    | OptionsCurrentlyExercisable |
|---------------|--------|---------------------------------|--------|------------------------------------------------------------------|---------|-----------------------------|
| $             | 4.85   |                            |   |                                                             | 25,000  |                        |   |   | 0.83 |   |   |   | 25,000 |   |
|          | 7.15   |                            |   |                                                             | 100,000 |                        |   |   | 5.26 |   |   |   | - |   |
|          | 9.86   |                            |   |                                                             | 69,000  |                        |   |   | 3.22 |   |   |   | 69,000 |   |
|          | 12.42  |                            |   |                                                             | 10,000  |                        |   |   | 3.84 |   |   |   | 4,000 |   |
|          | 23.10  |                            |   |                                                             | 10,000  |                        |   |   | 4.43 |   |   |   | 2,000 |   |

|                                  |   | Non-Vested Options   |    |
|---------------------------------------|--------|----------------------|---------|
|                                  |   | Number      ofShares |    | WeightedAverage      FairValue |
| Non-vested      at December 31, 2007  |   |                 | 33,000  |   |   | $ | 3.67 |   |
| Granted                               |   |                 | 107,500 |   |   |   | 2.74 |   |
| Vested                                |   |                 | (9,000  | ) |   |   | 3.95 |   |
| Forfeited                             |   |                 | (17,500 | ) |   |   | 5.11 |   |
| Non-vested      at September 30, 2008 |   |                 | 114,000 |   |   | $ | 3.45 |   |

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

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|               |   | Three      Months Ending September 30, |      |   | Nine      months Ending September 30, |   |
|--------------------|--------|----------------------------------------|-----------|--------|---------------------------------------|--------|
|               |   | 2008                                   |      | %      |                                  | 2007   |   | % |   | 2008 |   | % |   | 2007 |   | % |
| United      States |   | $                                      | 3,532,956 |   |                                  |   | 61 |   |   | $ | 2,653,515 |   |   |   | 60 |   |   | $ | 10,472,345 |   |   |   | 59 |   |   | $ | 8,358,543 |   |   |   | 56 |   |
| Canada             |   |                                   | 1,338,178 |   |                                  |   | 23 |   |   |   | 1,130,046 |   |   |   | 25 |   |   |   | 4,001,374 |   |   |   | 23 |   |   |   | 4,041,121 |   |   |   | 27 |   |
| Europe             |   |                                   | 729,500   |   |                                  |   | 12 |   |   |   | 506,457 |   |   |   | 11 |   |   |   | 2,442,681 |   |   |   | 14 |   |   |   | 1,884,500 |   |   |   | 13 |   |
| Pacific      Rim   |   |                                   | 115,349   |   |                                  |   | 2 |   |   |   | 72,939 |   |   |   | 2 |   |   |   | 351,711 |   |   |   | 2 |   |   |   | 278,189 |   |   |   | 2 |   |
| Other              |   |                                   | 122,407   |   |                                  |   | 2 |   |   |   | 94,731 |   |   |   | 2 |   |   |   | 456,141 |   |   |   | 2 |   |   |   | 304,829 |   |   |   | 2 |   |
| Total              |   | $                                      | 5,838,390 |   |                                  |   | 100 |   |   | $ | 4,457,688 |   |   |   | 100 |   |   | $ | 17,724,252 |   |   |   | 100 |   |   | $ | 14,867,182 |   |   |   | 100 |   |

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Item 3. Quantitative and Qualitative Disclosure About MarketRisks

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Item 4. Controls and Procedures

PART II - OTHER INFORMATION

Item 1A. Risk Factors

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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)                                             |
|   |  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 Page      X-4. |
|   |  99.1                              |  Press      release dated October 6, 2008, re stock buy back  program.                                                                      |

|   | __________________________ |
|--------|----------------------------|

|   | *      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 8-K as filed with the Commission in      December 2007.                                                                     |
| (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.                              |

SIGNATURES

|                          | ARRHYTHMIA      RESEARCH TECHNOLOGY, INC.                                                                                                                                                                                                                                                                                                                                                                                    |
|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Dated:      November 14, 2008 | 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 DFO 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  |
|   |  99.1         |  Press release dated October 6, 2008, re stock      buy back program.                                                     |       |

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