Healthcare Industry News:  Electroencephalogram 

Devices Monitoring Mergers & Acquisitions

 News Release - July 13, 2010

Masimo Acquires SEDLine and Enters the Brain Function Monitoring Market

Acquisition Allows Masimo to Expand Clinician Access to Innovative SEDLine® Technology

IRVINE, Calif., July 13 (Healthcare Sales & Marketing Network) -- Masimo (Nasdaq:MASI ), the inventor of Masimo Rainbow Pulse CO-Oximetry™, Masimo Rainbow Acoustic Monitoring™, and Masimo SET® Measure-Through Motion and Low Perfusion pulse oximetry, today announced that it has acquired SEDLine, Inc., a pioneering manufacturer of brain function monitoring. The acquisition of SEDLine formalizes Masimo's commercial entry into the brain function monitoring market -- enabling the innovative SEDLine technology to become more widely available to clinicians in both U.S. and international healthcare markets. Terms of the acquisition were not disclosed.

Masimo Founder and CEO, Joe Kiani, stated, "Multiple leading hospitals in the U.S. have already chosen SEDLine because they believe, as Masimo does, that SEDLine's technology and performance offers an advancement over other brain function monitoring technologies. Masimo has always been a strong advocate for innovation, patient care, and choice in the healthcare marketplace. We are happy to integrate SEDLine into our product pipeline to continue the Masimo tradition of offering groundbreaking noninvasive medical technologies that significantly improve patient outcomes and reduce the cost of care."

Brain function monitoring has become a widely utilized modality for assessing depth of anesthesia and sedation. Based primarily on analysis of the Electroencephalogram (EEG), brain function monitors continuously measure the electrical activity of the brain and translate those changes to the level of consciousness. Brain function monitoring has been deployed in a variety of clinical environments including the operating room to manage depth of sedation, the intensive care units where patients can be sedated for prolonged periods, and for ambulatory units where large numbers of patients undergo short duration procedures.

Privately-held and backed with a financial investment from Masimo last year, SEDLine was formed with the mission to advance brain function monitoring to improve the care of patients under anesthesia or sedation. SEDLine's technology is based on 10 years of innovation that delivers proven 4-channel EEG integrated algorithm performance, demonstrated reliability under challenging clinical conditions, and superior resistance to electrocautery(1) -- offering a cost-effective alternative to other brain function monitoring technologies.

Terri Monk, MD, Professor of Anesthesiology at Duke University Hospital, commented, "In my experience, SEDLine monitors provide valuable and reliable clinical information that helps me to deliver optimal anesthesia care. I am pleased but not surprised that SEDLine would become part of Masimo, as they both are technology-driven organizations committed to improving patient care."

Leslie Jameson, MD, Associate Professor and Vice Chair, University of Colorado, Department of Anesthesiology added, "When I need processed EEG monitoring to optimize anesthesia care in our operating rooms, I opt for SEDLine. The 4-channel EEG screen provides a diagnostic quality display that can be optimized for each patient. When combined with the DSA screen, the SEDLine is a very valuable tool to optimize anesthetic management, particularly in certain patient groups. I look forward to seeing how Masimo will expand SEDLine's technology platform to further enhance its already considerable clinical value."

Masimo and SEDLine are in the process of developing a full integration plan and will provide details when they are finalized. In the meantime, current or new SEDLine customers should continue to contact SEDLine personnel for any ordering or other customer service inquiries at (888) 733-5467.

(1) White PF, Tang J, Ma H, Wender RH, Sloninsky A, Kariger R . "Is the Patient State Analyzer with the PSArray2 a Cost-effective Alternative to the Bispectral Index Monitor During the Perioperative Period?" Anesth Analg. 2004;99:1429-1435.

About Masimo

Masimo (Nasdaq:MASI ) develops innovative monitoring technologies that significantly improve patient care -- helping solve "unsolvable" problems. In 1995, the company debuted Measure-Through Motion and Low Perfusion pulse oximetry, known as Masimo SET®, which virtually eliminated false alarms and increased pulse oximetry's ability to detect life-threatening events. More than 100 independent and objective studies demonstrate Masimo SET provides the most reliable SpO2 and pulse rate measurements even under the most challenging clinical conditions, including patient motion and low peripheral perfusion. In 2005, Masimo introduced Rainbow Pulse CO-Oximetry™, allowing noninvasive and continuous monitoring of blood constituents that previously required invasive procedures, including total hemoglobin (SpHb®), oxygen content (SpOC™), carboxyhemoglobin (SpCO®), methemoglobin (SpMet®), and Pleth Variability Index (PVI®), in addition to SpO2, pulse rate, and perfusion index (PI). In 2009, Masimo introduced Rainbow Acoustic Monitoring™, the first-ever noninvasive and continuous monitoring of acoustic respiration rate (RRa™). Masimo's Rainbow platform offers a breakthrough in patient safety by helping clinicians detect life-threatening conditions and helping guide treatment options. Founded in 1989, Masimo has the mission of "Improving Patient Outcome and Reducing Cost of Care ... by Taking Noninvasive Monitoring to New Sites and Applications®." Additional information about Masimo and its products may be found at

Forward Looking Statements

This press release includes forward-looking statements as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, in connection with the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations about future events affecting us and are subject to risks and uncertainties, all of which are difficult to predict and many of which are beyond our control and could cause our actual results to differ materially and adversely from those expressed in our forward-looking statements as a result of various risk factors, including, but not limited to: risks related to our belief that the acquisition of SEDLine will enable Masimo to commercially enter the brain function monitoring market and make SEDLine technology more widely available to clinicians in both U.S. and international healthcare markets; risks related to our assumptions regarding product integration, acquisition benefits, and the market timing of commercial products featuring SEDLine technology, as well as other factors discussed in the "Risk Factors" section of our most recent reports filed with the Securities and Exchange Commission ("SEC"), which may be obtained for free at the SEC's website at Although we believe that the expectations reflected in our forward-looking statements are reasonable, we do not know whether our expectations will prove correct. All forward-looking statements included in this press release are expressly qualified in their entirety by the foregoing cautionary statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of today's date. We do not undertake any obligation to update, amend or clarify these forward-looking statements or the "Risk Factors" contained in our most recent reports filed with the SEC, whether as a result of new information, future events or otherwise, except as may be required under the applicable securities laws.

Source: Masimo

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