Pediatric Prosthetics Inc. Reveals Projected Earnings
Thursday January 29, 5:47 pm ET

HOUSTON--(BUSINESS WIRE)--Jan. 29, 2004--Pediatric Prosthetics Inc. (OTC:PDPR - News) is pleased to announce that the Company is exceeding its projections for the first quarter of 2004. Listed below are both short-term and long-term projections illustrating the result of compounded earnings caused by the "annuity effect" of the required annual re-fits for growing children. Accounts Receivables are being accumulated at a faster rate than anticipated and major insurance companies are steadily authorizing treatments for clients. Authorizations are given by the insurance companies to allow prosthetic companies to deliver a proposal for a course of rehabilitation and proposed prosthetic components to be utilized. Before beginning the fitting the insurance company is asked to provide a "pre-authorization" to proceed, along with the proposed costs to them. That pre-authorization, and the dollar amount listed, is considered an account receivable pending completion and delivery of a given prosthesis.

Linda-Putback Bean's long-term patient-families have been very responsive to working with Pediatric Prosthetics Inc. and have been wonderful about contacting new parents and welcoming them to our family. This existing client base should help generate revenues in both the short and long term.

Projections are as follows:

Year 1 Year 2 Year 3 Year 4 Year 5

Revenue: 1,355,000 2,554,000 4,416,000 6,564,000 8,012,000
Cost of Sales: 450,000 669,000 1,038,000 1,385,000 1,675,000
Salaries: 340,000 440,000 650,000 750,000 800,000
Clinics: 175,000 200,000 200,000 200,000 200,000
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Income (Loss) 390,000 1,245,000 2,528,000 4,229,000 5,337,000
Before Taxes

Projections listed are estimations prepared by Management and are intended only to give investors an insight into potential earnings.

Pediatric Prosthetics Inc., based in Houston, Texas, is the primary provider of prosthetic patient care specializing in the infant-pediatric market on a national scale. The Company will focus on both the physical needs of the children and the emotional support of their parents.

Matters discussed in this press release are "forward-looking statements." Statements describing objectives or goals or the Company's future plans are also forward-looking statements and are subject to certain risks and uncertainties, including the financial performance of the Company and market valuations of the stock, which could cause actual results to differ materially from those anticipated.
Contact:

Pediatric Prosthetics Inc., Houston
Pat Arnett, 281-999-7721