CME TELEMETRIX ANNOUNCES SECOND QUARTER 2002 FINANCIAL RESULTS

Waterloo, ON, August 26, 2002 -- CME Telemetrix Inc. (TSX Venture: YME), a leading-edge developer of near-infrared instruments, today announced financial results for the second quarter of 2002.

Second Quarter 2002 Highlights

·Developed a new analyte monitoring capability for CME's NIR (near infrared) platform technology - the ability to non-invasively measure HbA1c; 
·Announced the appointment of former Motorola observer Dr. George Maracas as the Company's new Chief Scientific Officer.

In June, CME announced a new analyte monitoring capability for its NIR platform technology - the ability to non-invasively measure HbA1c. HbA1c is a key indicator of average glucose levels over a multi-week period. It allows people with diabetes to determine how well their glucose levels are being managed and to avoid complications such as blindness, kidney failure, and nerve damage. Preliminary testing results demonstrated that CME's NIR platform could non-invasively measure this blood analyte as accurately as the currently accepted invasive method. 

"We are working hard to bring this outstanding accomplishment by our scientists to market as soon as possible," said CME President and CEO Duncan MacIntyre. "On the basis of our HbA1c results to date, we have already initiated efforts to license the rights to our technology in Japan."

CME's Medical Advisory Board has also provided CME with access to their clinics to immediately pursue large-scale pilot trials for an HbA1c product. This testing will begin in October with preliminary results expected in the first quarter of 2003.

The HbA1c monitoring capability has also led to further understanding of the barriers to accuracy for measuring glucose, which to-date has delayed progress in the development of the GlucoNIR® glucose-monitoring device. 

Current invasive methods measure HbA1c and glucose from blood drawn from the finger, as a result measuring HbA1c and glucose solely in the blood. CME's NIR technology, which passes light through the patient's finger, measures all HbA1c and glucose found across the finger. 

For HbA1c this difference does not appear to pose a problem; HbA1c is located entirely in the blood, and CME's preliminary results, compared with the invasive method, have shown a high correlation. Glucose, however, is located in several "zones" across the finger - blood, interstitial fluid (the fluid surrounding cells), and intracellular fluid (the fluid inside cells). As a result, we believe CME's instrument has been measuring the amount of glucose in all three zones.

"During the past few months, we have conducted further testing to confirm this theory, which in turn has allowed us to submit additional glucose patents," added Dr. George Maracas, CME's Chief Scientific Officer. "Our main challenge now is for our technology to differentiate blood glucose from glucose located in the other zones of the finger. This differentiation will improve the accuracy of our blood glucose measurement."

CME will conduct expanded glucose testing, toward resolving this problem. These tests will be performed in conjunction with the HbA1c trials mentioned above, with results expected in the first quarter of 2003.

Dr. George Maracas was recently appointed as the Company's Chief Scientific Officer. He is renowned for his expertise in electrical engineering for healthcare applications, and has extensive experience with CME and the GlucoNIR® program, having held the position of Motorola observer on CME's Board of Directors.

"We are pleased that Motorola has continued to strongly support CME, agreeing to provide Dr. Maracas on a two year secondment," noted Mr. MacIntyre. "He will be an important resource for CME as we finalize development and commercialize our technology."

Financial Results

For the three-month period ended June 30, 2002, CME reported a net loss of $983,000 or ($0.12) per share, compared to a net loss of $682,000 or ($0.08) per share for the corresponding period in 2001. For the six-month period ended June 30, 2002, the Company reported a net loss of $1.7 million or ($0.20) per share compared to a net loss of $1.6 million or ($0.18) per share for the corresponding period in 2001.

Revenue for the quarter ended June 30, 2002 was $53,000, a decline of $142,000 from the quarter ended June 30, 2001. This decrease was due to a reduction in Food Quantifier royalties and lower interest revenue. Revenue for the six months ended June 30, 2002 was $175,000, a decline of $193,000 from the corresponding period last year. Again, this decline was due to a reduction in Food Quantifier royalties and lower interest revenue.

Operating expenses for the quarter ended June 30, 2002 increased by $159,000 to $1,036,000 from $877,000 for the corresponding period in 2001, attributable to both increased R&D and general & administration expenses. The increase in R&D spending was primarily due to more extensive testing of the glucose-measuring instrument, and the increase in general and administration costs was principally due to legal work associated with protecting the Company's intellectual property.

Operating expenses for the six months ended June 30, 2002 were $1,903,000, a decrease of $67,000 from $1,970,000 for the six months ended June 30, 2001. After excluding a non-recurring item of $266,000 from the 2001 period, operating expenses for the six months ended June 30, 2002 increased by $199,000 or 12% from the same period last year. Again, this increase was primarily due to more extensive testing of the glucose-measuring instrument and an increase in legal costs associated with the Company's intellectual property.

Working capital at June 30, 2002 was $3,263,000, compared to $5,022,000 at December 31, 2001.

CME has adequate cash in the short term, but does not have sufficient resources to complete the commercialization of either an HbA1c product or our GlucoNIR® product at this time. Despite the successful achievements to date, the Company believes it would be inappropriate at this time to raise capital via a public offering because of the resultant significant dilution to the Company's existing shareholders. Management is optimistic that obtaining a licensing agreement for HbA1c in Japan will generate sufficient cash to defer a near term financing.

About CME Telemetrix
CME Telemetrix is a leading developer of optical based technologies. Through its expertise in optics, algorithms, and electronics, the Company has developed a platform technology with multiple commercial applications. Currently, the Company's primary focus is the development of a device that utilizes near infrared light for non-invasive blood analysis, particularly for measuring blood glucose levels for people with diabetes. 

CME Telemetrix has entered into licensing agreements with several international companies, including Motorola, Inc, Johnson & Johnson, and ESE Inc. Shares of CME Telemetrix trade under the symbol YME on the TSX Venture Exchange. 

Additional information is available on the Company's website at www.cmetele.com .

This news release contains certain forward-looking statements that reflect the current views and/or expectations of CME Telemetrix with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.

To view the financial statements, click on the link below:
http://www.newswire.ca/releases/August2002/26/c5605.html 

For more information, please contact:
Duncan MacIntyre 
President & CEO 
CME Telemetrix Inc.
519-886-8440 
519-886-8442 Fax 

E-mail: info@cmetele.com  
Internet: www.cmetele.com  

Jason Hogan
Investor Relations
The Equicom Group Inc.
416-815-0700 ext. 222
416-815-0080 Fax

E-mail: jhogan@equicomgroup.com 
Internet: www.equicomgroup.com 

The TSX Venture Exchange has neither approved nor disapproved the information herein contained.