Healthcare Industry News:  obstructive sleep apnea 

Devices Reimbursement

 News Release - December 19, 2006

Wisconsin Physician Services Now Covers Restore Medical's Pillar(R) Palatal Implant System for Obstructive Sleep Apnea

Reimbursement for Minimally-invasive In-office Procedure Now Available to Medicare Patients in Minnesota, Illinois, Michigan and Wisconsin

ST. PAUL, Minn.--(HSMN NewsFeed)--Restore Medical (Nasdaq:REST ) today announced that Wisconsin Physician Services (WPS) is now providing reimbursement coverage for the Pillar Procedure as a treatment for obstructive sleep apnea (OSA). WPS establishes medical policy for Medicare physician services in Minnesota, Illinois, Michigan and Wisconsin, and is the first regional Medicare carrier to grant coverage for the Pillar Procedure. WPS is in the process of determining the payment that will apply to this new Pillar Procedure coverage policy.

"This is an exciting milestone for our company, and continues the positive momentum we achieved earlier this year when the Centers for Medicare & Medicaid Services (CMS) granted the Pillar Procedure a New Technology APC Designation," said Bob Paulson, President and CEO of Restore Medical. "We are encouraged that WPS has recognized both the safety and clinical efficacy of the Pillar Procedure, which offers patients a minimally-invasive palatal treatment option for their obstructive sleep apnea. We look forward to similar decisions by other Medicare carriers."

During the Pillar Procedure, a physician places three small polyester implants in the soft palate located at the back of the roof of the patient's mouth. Airflow in the back of the mouth can cause loose palatal tissue to flutter, collapse and obstruct the upper airway causing OSA. The Pillar implants are designed to add structural support and stiffen the soft palate tissue, thereby reducing or eliminating this palatal flutter and collapse.

For more details on WPS' medical policy please visit: http://www.wpsmedicare.com/policies/wisconsin/ent012.pdf

About Restore Medical and the Pillar Procedure

Restore Medical develops, manufactures and markets innovative medical devices to treat sleep-disordered breathing. The Company's proprietary Pillar® Palatal Implant System is the only implantable palatal device to treat snoring and mild-to-moderate obstructive sleep apnea to be approved by the U.S. Food and Drug Administration and Health Canada, and to have received the CE Mark for sale in the European Union. The Pillar Palatal Implant System is sold throughout the U.S. and Canada, and in various countries in Asia Pacific, Europe, South America and the Middle East.

For more information about Restore Medical, the Pillar Procedure and physicians who offer the Pillar Procedure, visit the Company's website at www.restoremedical.com or www.pillarprocedure.com.

Forward-Looking Statements

Except for historical information, this press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements included in this press release that address activities, events or developments that Restore Medical expects, believes or anticipates will or may occur in the future, are forward-looking statements. All forward-looking statements are based on assumptions made by Restore Medical's management based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the Company's control, and which could cause actual results or events to differ materially from those expressed in such forward-looking statements. Factors that could cause or contribute to such differences are discussed in documents filed by Restore Medical with the Securities and Exchange Commission from time to time, including its registration statement on Form S-1 filed on May 12, 2006 (Reg. No. 333-132368) and its Form 10-Q for the quarter ended June 30, 2006. Forward-looking statements represent the judgment of the Company's management as of the date of this release, and Restore Medical disclaims any intent or obligation to update any forward-looking statements.


Source: Restore Medical

Issuer of this News Release is solely responsible for its content.
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