For Immediate Release

ITAMAR MEDICAL RAISES 8 MILLION DOLLARS

July 15, 2002

Caesarea, Israel -- Itamar Medical announced today that has completed an $8 million financing round from new and veteran shareholders to market and sell its non-invasive technology that measures autonomic nervous system functions. The company is now marketing its two flagship products, which are an unattended home care diagnostic device for the detection of sleep related breathing disorders, and a device to aid in the diagnosis of stress induced myocardial ischemia.

The company's President and Chief Executive Officer, Israel Schreiber, said the investment will be channeled over the next 6-18 months to development, marketing and sales of the company's products, which are undergoing continued clinical trials. `We have over 10 clinical trials sites at universities such as Yale, Harvard and Stanford, and our main distribution channels right now are targeting Europe and the US. Cardiology is a multi-billion dollar market which we are tapping into. The sleep disorders market is relatively new and very fast growing, ` Schreiber said.

Itamar Medical's products are based on a signal called PAT, which stands for peripheral arterial tone, and is used as a non-invasive window into the autonomic nervous system. By measuring arterial blood-flow in a fingertip, the PAT signal can be used as a measure for changes in autonomic nervous system activity. `Interestingly, our research confirms a connection between sleep-related disorders and cardiovascular disease` Schreiber added.

Most of the capital was raised from new investors. One is the United States venture capital fund, Bay City Capital, making its debut in the Israeli venture scene. The fund, which specializes in life sciences, manages $500 million in four venture capital funds.

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