Healthcare Sold its Interest in Procognia and Has Regained Compliance With NASDAQ's Minimum Stockholders' Equity Requirement

PETACH TIKVA, Israel (31 May 2005) -- Healthcare Technologies Ltd. (NASDAQ: HCTL - News), today announced that it has completed the sale of its equity interest in Procognia Ltd. to Healthcare's principal stockholder, Gamida-for-Life BV, following the receipt of stockholder approval for this transaction at Healthcare's special general meeting of stockholders held on May 29, 2005. The completion of this transaction will result in an increase in Healthcare's stockholders' equity (which was approximately $2.0 million at March 31, 2005) by approximately $4.8 million as a result of the deconsolidation of Procognia's accumulated losses from Healthcare's balance sheet. As a result, the Company has regained compliance with the Nasdaq Stock Market's minimum stockholders' equity requirement.
About Healthcare Technologies

Healthcare Technologies Ltd., through its subsidiaries and affiliate, Gamidor Diagnostics (1984) Ltd., Danyel Biotech Ltd. and Savyon Diagnostics Ltd., specializes in development, manufacturing and marketing of clinical diagnostic test kits and provides services and tools to diagnostic and biotech research professionals in laboratory and point of care sites worldwide.

SAFE HARBOR: This press release contains certain forward looking statements within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. With the exception of historical information contained herein, the matters discussed in this press release involve risk and uncertainties. Actual results could differ materially from those expressed in any forward looking statement made by or on behalf of Healthcare Technologies Ltd. Readers are referred to the documents filed by the company with the Securities Exchange Commission, specifically the most recent report on Form 20F that identifies important risks which could cause actual results to differ from those contained in the forward looking statements.

Further info: Eran Rotem, CFO, (972-3) 927-7232/3 Biz.Yahoo.com