ELECTROMED, INC. Creating superior care through innovation FOR IMMEDIATE RELEASE Contact: Robert D. Hansen Chairman and Chief Executive Officer Electromed, Inc. 952-758-9299 bhansen@electromed.com Pankti Shah Director of

ELECTROMED, INC. REPORTS 2011 FIRST QUARTER

29% Increase in First Quarter Revenue

Compared to Prior Year

New Prague, Minnesota November 15, 2010

Electromed, Inc. (NASDAQ: ELMD) today announced financial results for the

three months ended September 30, 2010. Net revenues for the three months ended

September 30, 2010 were approximately $4,165,000, a 29% increase compared to

net revenues of approximately $3,228,000 for the same period last year. The

Company also announced for the three months ended September 30, 2010 net income

of approximately $112,000, or $0.02 per basic and diluted share. These results

represent a decrease over the reported net income of $335,737, or $0.06 and

$0.05 per basic and diluted share, respectively, for the same period last year.

The reduction primarily resulted from increases in expenses designed to

develop, support, and maintain a higher sales level.

increased to approximately $3,003,000, or 72.1% of net revenues, for the three

months ended September 30, 2010, from approximately $2,501,000, or 77.5% of

net revenues in the three month period ended September 30, 2009. The increase

in gross profit dollars resulted primarily from the increase in sales volume.

The decrease in gross profit percentage was primarily the result of lower than

average reimbursement from the mix of referrals during the three month period.

Factors such as diagnoses which are not assured of reimbursement and insurance

programs with lower allowable reimbursement amounts (for example, state

Medicaid programs) affect average reimbursement received on a short-term basis

and tend to fluctuate on a quarterly basis. The Company s management does not

believe the results of the quarter ended September 30, 2010 are indicative of a

long-term decrease in margins.

Three-Month Results as of September 30, 2010

expenses for the three month period ended September 30, 2010 increased by

approximately $875,400, to $2,756,000, compared to the same period last year.

These planned increases resulted from higher payroll and compensation-related

expenses related to adding employees to support sales and marketing

initiatives, patient training costs related to a higher sales volume, and trade

show expenses related to the Company s Annual Sales Meeting occurring in the

first quarter of fiscal 2011, compared to the second quarter of fiscal 2010.

Additionally, the Company continued to focus on research and development

efforts, resulting in research and development expenses of approximately

$198,000 in the first quarter of fiscal 2011 compared to approximately $115,000

for the same period last year.

increased to approximately $6,016,000 as of September 30, 2010. For the three

months ended September 30, 2010, cash provided by financing activities was

approximately $5,760,000, consisting of approximately $7,600,000 gross proceeds

from the issuance of common stock in the Company s initial public offering,

offset by approximately $1,230,000 of offering expenses incurred during the

fiscal quarter, payments on the Company s revolving credit line of $500,000,

and principal payments on long-term debt of approximately $105,000. An

aggregate of $294,000 was used for investing activities during the first fiscal

quarter, including $196,000 relating to defense of the SmartVest

trademark and $98,000 for the purchase of property and equipment. On September

30, 2010, the Company reached a confidential settlement in a trademark

infringement lawsuit brought against it by Hill-Rom Services, Inc., Advanced

Respiratory, Inc., Hill-Rom Company, Inc., and Hill-Rom Services Pte. Ltd.

(collectively, Hill-Rom ), regarding the Company s use of the term SmartVest .

The terms of the settlement agreement are confidential. The Company has no

plans to change its marks. The company expects that the settlement will result

in a decrease in expenses relating to litigation defense.

About Electromed, Inc.

Electromed, Inc., founded in

1992 and headquartered in New Prague, Minnesota, manufactures, markets, and

sells products that provide airway clearance therapy, including the SmartVest

Airway Clearance System and related products, to patients with compromised

pulmonary function. Further information about the Company can be found at

Certain statements found in

this release may constitute forward-looking statements as defined in the U.S.

Private Securities Litigation Reform Act of 1995. Forward-looking statements

reflect the speaker s current views with respect to future events and financial

performance and include any statement that does not directly relate to a

current or historical fact. The forward-looking statements in this release

include the company s expectations relating to gross margins, litigation

expense and continued use of the SmartVest mark, and can

generally otherwise be identified by the words believe, expect,

Three-Month Results as of September 30, 2010

anticipate or intend or

similar words. Forward-looking statements cannot be guaranteed and actual

results may vary materially due to the uncertainties and risks, known and

unknown, associated with such statements. Examples of risks and uncertainties

for Electromed include, but are not limited to, the impact of emerging and

existing competitors, the effectiveness of our sales and marketing initiatives,

our ability to successfully implement our marketing and sales strategies, the

risk that we may be party to infringement actions in the future (although at

this time we are not aware of any undisclosed actual or threatened litigation

that would have a material adverse effect on our financial condition or results

of operations), as well as other factors described from time to time in our

reports to the Securities and Exchange Commission (including our Annual Report

on Form 10-K). Investors should not consider any list of such factors to be an

exhaustive statement of all of the risks, uncertainties or potentially

inaccurate assumptions investors should take into account when making

investment decisions. Shareholders and other readers should not place undue

reliance on forward-looking statements, as such statements speak only as of

the date of this release.

Electromed, Inc. and Subsidiary

Condensed Consolidated Balance Sheets

Electromed, Inc. and Subsidiary

Condensed Consolidated Statements of Income (Unaudited)

Electromed, Inc. and Subsidiary

Condensed Consolidated Statements of Cash Flows (Unaudited)