COLUMBIA, SC/JUNE 23, 2003 -- SleepMed incorporated and WideMed, Ltd. introduced a revolutionary software platform (developed by WideMed and known as Morpheus) at this year's Associated Professional Sleep Societies Meeting in Chicago. Morpheus provides a new approach to the scoring, networking and data management of sleep studies. SleepMed has exclusive rights to Morpheus in the United States and is developing a Morpheus-based sleep record outsourcing service that will be available to sleep labs and sleep centers throughout the country by early 2004.

Morpheus is a breakthrough platform for signal analysis and diagnosis of physiological sleep. It received 510(k) clearance from the Food and Drug Administration last month. Morpheus succeeds in automating most of sleep scoring. While it provides the R & K equivalent, today's industry standard, it also does much more. It gives physicians the capability to analyze signals in new ways; it provides tools that assist physicians in preparing their interpretation reports; it significantly reduces inter-scorer variability; and, it improves turnaround times. Morpheus is compatible with all existing PSG systems that export EDF files.

Morpheus is based on the pioneering research in adaptive signal segmentation and unsupervised temporal clustering conducted by Dr. Amir Geva, founder and President of WideMed. "WideMed's proprietary algorithms learn and adapt to patient-specific bio-signals to ensure patient-specific outcomes for better diagnosis and patient care, " said Geva, "and is the product of over ten years of development."

"We tested Morpheus for ten months," said Dr. Richard K. Bogan, Chairman and Chief Medical Officer of SleepMed. "We formed a panel of experts comprised of two boarded sleep specialists and four RPSGTs with 100 years of combined experience with over 50,000 sleep studies. Our panel scored studies side-by-side with Morpheus. While there was variability among our panel members, the Morpheus results correlated strongly with the panel's consensus results. I am highly confident that Morpheus will give us consistently superior results, and I'm enthused about its applications in research. We expect future research with Morpheus will demonstrate expanded physiologic data."

"During the next six months, we will deploy Morpheus throughout SleepMed," said Jerry Myers, President and CEO of SleepMed. "Morpheus, which is server-based, can be accessed via the internet with a standard browser. It puts sleep studies (the raw data) and scored information in electronic form, thereby making them available to reading physicians on an expedited basis. It will improve our services to referring and interpreting physicians, speed turnaround times, improve efficiency, and reduce costs. We expect to convert all paper to electronic media, including medical records with electronic signature capability. We plan to offer these same advantages to others, and by early 2004 we will introduce a Morpheus-based service for sale to labs throughout the United States."

WideMed, based in Israel, is an early-stage company that has developed a remote-medicine platform, based on proprietary data mining and pattern recognition algorithms, for continuous real-time identification and prediction of pathological events. The initial applications are the diagnosis of sleep disorders and the continuous diagnosis and prognosis of cardiovascular disorders.

SleepMed is the largest provider of diagnostic and treatment services for sleep and seizure disorders in the United States. Since its formation in 1999, SleepMed has tripled in size and has a presence in 39 states with over 100 sleep labs, 40 EEG testing sites, 70 hospital equipment accounts and three clinical research sites. The Company's proprietary DigiTrace monitoring system is the gold standard in ambulatory EEG and has been validated for unattended full PSG studies. The system has tested over 100,000 patients and has been used in national clinical drug studies for sleep and EEG.