COLUMBIA, SC --May 4, 2001-- SleepMed incorporated has acquired Home Sleep Diagnostics, Inc. (HSDI) in a cash and stock transaction.  HSDI provides diagnostic and therapy services for people with suspected sleep disorders.With annual revenues of $4 million, 53 employees, and 26 service locations in California, HSDI will perform 4,500 attended PSG sleep studies this year and provide sleep therapy services for many of these patients. HSDI achieved accreditation by the Joint Commission on Accreditation of Healthcare Organizations in March 2000.

Juha Book founded HSDI in 1994. The company is headquartered in Los Angeles, California, and operates nine freestanding laboratories and 17 hospital-based sites. Book has served as President & CEO of HSDI since the company's founding, and will continue to serve in these capacities in his new affiliation with SleepMed. Book, a Registered Polysomnographic Technologist, is a director of the California Sleep Society. "I am very pleased to join SleepMed and I look forward to building an even stronger leadership position in California," stated Book. "HSDI will benefit from SleepMed's administrative and financial resources and our employees will enjoy broader career opportunities within the industry's leading company."

HSDI will adopt the SleepMed name and have responsibility for SleepMed's sleep and EEG businesses in the state of California. Mr. Book will serve as President and CEO of SleepMed's California operations and report to Jerry Myers, President and Chief Executive Officer of SleepMed.

"We are delighted to welcome Juha and HSDI's employees to SleepMed," stated Myers."Juha has done a marvelous job of building a leadership position in a dynamic market. He is a superb entrepreneur and has succeeded in delivering high quality clinical care while meeting the economic requirements of a fast-growing enterprise. As we join forces, we are dedicated to establishing the first national brand in sleep services and maintaining our market leadership in ambulatory EEG monitoring services."

SleepMed provides diagnostic and treatment services for sleep disorders and epilepsy. During 2001 the Company will perform 27,500 sleep studies and 19,000 patient days of ambulatory EEG monitoring at more than 100 locations in 23 states. The company has partnerships for sleep laboratory management with hospitals and physician groups, and operates standalone labs in collaboration with local specialists. SleepMed also operates the nation's leading EEG and home sleep study referral service and participates in clinical research studies conducted by pharmaceutical firms.