Healthcare Industry News:  Polysomnography 

Devices Mergers & Acquisitions

 News Release - May 28, 2008

Natus Medical Completes Acquisition of Sonamed

SAN CARLOS, Calif.--(HSMN NewsFeed)--Natus Medical Incorporated (Nasdaq:BABY ) today announced that it has completed its acquisition of privately held Sonamed Corporation. Massachusetts based Sonamed manufactures and markets the Clarity Screener and associated disposable supplies that aid medical practitioners in screening for hearing loss in newborns.

Natus acquired all outstanding shares of Sonamed capital stock for $9 million cash, exclusive of direct costs of the acquisition. Sonamed reported revenue of $3.5 million for its year ended December 31, 2007 and had cash of approximately $2.7 million as of the date of the acquisition.

Jim Hawkins, President and Chief Executive Officer of Natus commented, “We are very pleased to announce the completion of this acquisition. We expect the Clarity screener to further fill out our product line in newborn hearing screening. With two-thirds of Sonamed's revenue coming from disposable supplies, combined with their high gross profit margin, we believe Sonamed’s products will be an ideal fit for our business model.”

Financial Guidance

As discussed in its May 1, 2008 first quarter 2008 financial results conference call, Natus will update in the near future its 2008 financial guidance in light of the completion of the Sonamed acquisition.

About Natus Medical

Natus is a leading provider of healthcare products used for the screening, detection, treatment, monitoring and tracking of common medical ailments such as hearing impairment, neurological dysfunction, epilepsy, sleep disorders, and newborn care. Product offerings include computerized neurodiagnostic systems for audiology, neurology, Polysomnography, and neonatology, as well as newborn care products such as hearing screening systems, phototherapy devices for the treatment of newborn jaundice, head-cooling products for the treatment of brain injury in newborns, and software systems for managing and tracking disorders and diseases for public health laboratories.

Additional information about Natus Medical can be found at

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the benefit to Natus from the Sonamed products. These statements relate to future events and involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied by the forward-looking statements. Actual results could differ materially due to a number of factors, including general political, economic and market conditions and events. Natus disclaims any obligation to update information contained in any forward-looking statement.

More information about potential risk factors that could affect the business and financial results of Natus is included in Natus' annual report on Form 10-K for the year ended December 31, 2007, and its quarterly reports on Form 10-Q, and in other reports filed from time to time by Natus with the U.S. Securities and Exchange Commission.

Source: Natus Medical

Issuer of this News Release is solely responsible for its content.
Please address inquiries directly to the issuing company.

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