Zynex Announces Adjustments to 2008 Quarterly Financial Statements and Estimated 2008 Net Income

Announces Adjustments to

Quarterly Financial Statements

Estimated 2008 Net Income

Colo. April 1, 2009 Zynex, Inc. (OTCBB: ZYXI), a provider

of pain management systems and electrotherapy products for medical patients with

functional disability, announces that the Board of Directors and Audit Committee

of Zynex has concluded that Zynex's unaudited financial statements for the

quarters ended March 31, 2008, June 30, 2008 and September 30, 2008, included in

its quarterly reports, should be revised to reflect adjustments to Zynex's

allowance for provider discounts, accounts receivable and net revenue for such

periods. These quarterly adjustments were determined after an

evaluation of adjustments identified in connection with the 2008 year-end

closing and the audit of the 2008 financial statements.

will restate its unaudited financial statements for the first three quarters of

2008. Zynex will include restated information regarding these

quarters in its Annual Report on Form 10-K for the year ended December 31, 2008

or will amend its Quarterly Reports on Form 10-Q for the first three quarters of

2008. Zynex believes that there will not be a restatement of 2007

financial statements. Zynex intends to file its Annual Report on Form

10-K for the year ended December 31, 2008 as soon as practicable.

adjustments identified in connection with the year-end closing and 2008 year-end

audit result in a decrease in net accounts receivable and related net revenues

of approximately $5.1 million as of and for the year ended December 31,

2008. A substantial part of these adjustments applies to the first

three quarters of 2008. These adjustments are based on a

re-evaluation of the estimated allowance for provider discounts that management

believes should have been utilized in 2008. The change in the

provider discount rates is based on management's analysis of business

conditions, recent rates of collection and additional methodologies that the

Company applied in estimating these rates at year end, which management believes

are more accurate than previously applied rates during the quarterly periods in

2008. Zynex's allowance for provider discounts is recorded to account

for the risk of non-payment arising from reimbursements from insurance providers

that are less than amounts claimed, amounts subject to patients' deductibles and

management estimates, that, after taking into account the unaudited impact of

the adjustments, the results for the year ended December 31, 2008 will be

approximately as follows:

The unaudited amounts presented above are subject to change until the 2008

financial statements are finalized.

Sandgaard, President and CEO of Zynex commented: "Zynex's business

continues as usual, and we are working on improvements to our accounting

estimates and our internal operations. Doctors and patients continue

to have a readiness to use our products, and our rental and sales of products

continue at favorable levels. The adjustments to our financial

statements are to better recognize the current environment and collectability of

accounts receivables."

of the adjustments, the unaudited financial statements and press releases

previously issued on results for the first three quarters of 2008 should not be

relied upon. Zynex's management is developing new methodologies that

it believes will identify changes in collections of accounts receivable and

business conditions in order to make more accurate estimates of the allowance

for provider discounts on a more timely basis.

to terms of the revolving credit facility with Marquette Healthcare Finance,

Zynex is to provide accurate financial statements prepared in accordance with

generally accepted accounting principles to

Marquette. Representations and financial covenants on the subject may

be breached by the proposed restatement of unaudited financial statements for

the first three quarters of 2008. In addition, Zynex believes that it

will be in default in complying with one or more financial covenants, including

an EBITDA covenant, as of December 31, 2008 and would also be in potential

default under the covenants unless they are revised for

2009. Management is discussing with Marquette a waiver or forbearance

under the revolving credit facility regarding these

defaults. However, there is no assurance that Zynex will be able to

maintain the credit facility in place or obtain the waiver or forbearance of

Inc. (founded in 1996) engineers, manufactures, markets and sells its own design

of electrotherapy medical devices in two distinct markets: standard digital

electrotherapy products for pain relief and pain management; and the

NeuroMove(TM) for stroke and spinal cord injury (SCI) rehabilitation. Zynex's

product lines are fully developed, FDA-cleared, commercially sold, and have been

developed to uphold the Company's mission of improving the quality of life for

patients suffering from impaired mobility due to stroke, spinal cord injury, or

debilitating and chronic pain.

statements in this release are "forward-looking" and as such are subject to

numerous risks and uncertainties. Actual results may vary significantly from the

results expressed or implied in such statements. Factors that could cause actual

results to materially differ from forward-looking statements include, but are

not limited to, the need to obtain additional capital in order to grow our

business, larger competitors with greater financial resources, the need to keep

pace with technological changes, our dependence on the reimbursement from

insurance companies for products sold or rented to our customers, acceptance of

our products by health insurance providers, acceptance of our products by

hospitals and clinicians, our dependence on third party manufacturers to produce

our goods on time and to our specifications, implementation of our sales

strategy including a strong direct sales force and other risks described in our

10-KSB Report for the year ended December 31, 2007 and our 10-Q Report for the

quarter ended September 30, 2008.

Sandgaard, CEO, 303-703-4906