Electromed, Inc. to Receive Refund for Medical Device Excise Taxes Paid

Electromed, Inc. (NYSE American:ELMD) ("Electromed" or the "Company"), a leader in innovative airway clearance technologies, today announced that the Internal Revenue Services ("IRS”) has agreed to refund the Company approximately $406,000 related to federal medical device excise taxes paid on revenue associated with the sales of its SmartVest® Airway Clearance System ("SmartVest”) during the Company's tax periods ended June 30, 2014 through December 31, 2015. This refund from the IRS will be recognized in the Company’s financial statements during the fiscal quarter ending June 30, 2018, and is the result of an examination the Company concluded with the IRS on May 22, 2018 that determined the SmartVest was eligible for the retail exemption from the medical device excise tax. Furthermore, the Company will be exempt from the medical device tax after the conclusion of the current two-year medical device tax moratorium, which is scheduled to end on December 31, 2019.

About Electromed, Inc.

Electromed manufactures, markets, and sells products that provide airway clearance therapy, including the SmartVest^® Airway Clearance System, to patients with compromised pulmonary function. The Company is headquartered in New Prague, Minnesota and was founded in 1992. Further information about Electromed can be found at www.smartvest.com.

Cautionary Statements

Certain statements in this release constitute forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect 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. Forward-looking statements can generally be identified by the words "anticipate,” "believe,” "estimate,” "expect,” "will” and similar words. Forward-looking statements in this release include the anticipated recognition of a tax refund in the Company's financial statements. 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 the Company include, but are not limited to, the impact of emerging and existing competitors, the effect of new legislation on the Company’s industry and business, the effectiveness of the Company’s sales and marketing and cost control initiatives, changes to reimbursement programs, as well as other factors described from time to time in the Company’s reports to the Securities and Exchange Commission (including the Company’s most recent Annual Report on Form 10-K, as amended from time to time, and subsequent reports on Form 10-Q and Form 8-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.

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