Exhibit 99.1

(BIOTEL LOGO)

Press
ReleaseMonday, September 29, 2008For further information,
contact 
Judy Naus at 651-286-8623
or info@biotelinc.com

Biotel
Announces Record Revenues and Earnings for Fiscal 2008

Minneapolis, September 29,
2008  Biotel Inc. (Bulletin Board: BTEL.OB) announced results
for the year ended June 30, 2008, with net earnings of $666,000, or $0.23 per
diluted share, on revenues of $11,495,000. This compares to net earnings of
$520,000, or $0.19 per share, on revenues of $11,233,000 for the prior year. For
its fourth quarter, the company reported net earnings of $191,000, or $0.07 per
diluted share, on revenues of $3,187,000. This compares to net earnings of
$221,000, or $0.08 per diluted share, on revenues of $3,115,000 in the fourth
quarter of 2007.

Highlights
for the quarter and year are as follows:

| |   |                                                            
| | - | -----------------------------------------------------------
| |  | Sixth
 year in a row of profitable growth.                 
| |   |                                                            
| |  | Record
 sales for the fourth quarter and year              
| |   |                                                            
| |  | Net
 income for the year up 28.1 percent over 2007         
| |   |                                                            
| |  | Gross
 margin for the year was 44.4% versus 42.6% last year

Biotel
achieved a record fiscal year in revenues and earnings with a strong
improvement in the fourth quarter over the third quarter, Biotel President and
CEO Steve Springrose said. Our Braemar Holter devices, event recorders, liposuction
and other medical devices made strong revenue contributions, and our Agility
24/7 cardiac monitoring services continued to make very strong year over year
gains. The highlight of the quarter was the introduction of our new ER920W
cardiac arrhythmia monitor, our first entry into the high potential wireless
market. Very importantly, we have already received FDA 510(k) approval of our
next generation wireless monitor employing Fusion technology, scheduled for
product introduction in early calendar 2009. Biotel serves as a development
partner to medical corporations seeking new devices and clinical research
services.

|                            |  |                              |           |                              |   |           |  |  |       |   
|--------------------------- |  | ---------------------------- | --------- | ---------------------------- | - | --------- |  |  | ----- | --
|                            |  | 3
 months endedJune 30, 2008 |           | 3
 months endedJune 30, 2007 |   | %Change   | 
|                            |  |                              |           |                              |   |           | 
|                            |  |                              |           |                              |   |           |  |  |       |   
|Revenues                    |  | $                            | 3,187,000 |                              | $ | 3,115,000 |  |  | 2.3   | % 
|Net Income                  |  | $                            | 191,000   |                              | $ | 221,000   |  |  | (13.6 | %)
|Earnings Per Share, Basic   |  | $                            | .07       |                              | $ | 0.08      |  |  |       |   
|Earnings Per Share, Diluted |  | $                            | .07       |                              | $ | 0.08      |  |  |       |   

|                            |  |                               |            |                               |   |            |  |  |      |  
|--------------------------- |  | ----------------------------- | ---------- | ----------------------------- | - | ---------- |  |  | ---- | -
|                            |  | 12
 months endedJune 30, 2008 |            | 12
 months endedJune 30, 2007 |   | %Change    | 
|                            |  |                               |            |                               |   |            | 
|                            |  |                               |            |                               |   |            |  |  |      |  
|Revenues                    |  | $                             | 11,495,000 |                               | $ | 11,233,000 |  |  | 2.3  | %
|Net Income                  |  | $                             | 666,000    |                               | $ | 520,000    |  |  | 28.1 | %
|Earnings Per Share, Basic   |  | $                             | .25        |                               | $ | 0.20       |  |  |      |  
|Earnings Per Share, Diluted |  | $                             | .23        |                               | $ | 0.19       |  |  |      |  

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