NeuroWave announces spin-off and license of brain monitoring technologies from CleveMed

CLEVELAND, Ohio (April 12, 2010) - NeuroWave Systems Inc. and Cleveland Medical Devices Inc. (CleveMed) today announced finalizing their license agreement where CleveMed formally transferred the anesthesia monitoring and seizure detection technologies previously developed by the NeuroWave Division of CleveMed. This includes a number of supporting technologies, including: wavelet analysis of the electroencephalogram (EEG) for anesthetic depth estimation and artifact removal algorithms developed by BioNova Technologies Inc. in partnership with the University of British Columbia, which had previously been licensed to CleveMed. NeuroWave has developed the NeuroSENSE Brain Monitor for Anesthesia, which is currently undergoing testing in Europe and the US and awaiting approvals for sales on both continents; and its upcoming NeuroMedic and NeuroFast products are easy-to-deploy seizure detection devices for emergency room and pre-hospital patients for both civilian and military applications. NeuroWave is also the only company selected by both the National Institutes of Health and the Department of Defense to develop seizure detection devices to monitor patients exposed to chemical warfare agents.

With a market for brain-wave monitoring devices for anesthesiology estimated to exceed a billion dollars, the NeuroSENSE is well positioned for significant sales as an easy-to-use and robust complement to standard-of-care anesthesia monitoring. The system acquires and displays bilateral frontal EEG signals and quantifies brain activity in patients undergoing general anesthesia or sedation. The NeuroSENSE is expected to improve patient safety and outcome by providing instantaneous tracking of the brain state and simultaneous monitoring of both cerebral hemispheres.

Tatjana Zikov, President of NeuroWave said "NeuroWave is committed to improving patient outcome and quality of life by making brain monitoring cost-effective and accessible through innovative signal processing of brain waves. The NeuroSENSE is the first milestone towards that goal." Dr. Mo Modarres, Vice-chairman and Co-founder of NeuroWave, added that "This spin-off is the realization of our 15 years of dedication to research in intelligent and automated brain monitoring. We are now fully self-sustaining and profitable, while our new products will allow for substantial growth."

Robert N. Schmidt, Chairman of both CleveMed and NeuroWave concluded "The spin-off and license is a testament to the maturity of our products and success of our businesses. We have improved our overall strength and are pursuing additional strategic business development opportunities."

About NeuroWave:
NeuroWave Systems Inc. is focused on developing improved clinical brain monitoring devices. The Companys mission is to develop, manufacture, and market monitoring products using advanced signal processing of brain waves (electroencephalogram - EEG) and other biosignals for Neurology, Anesthesia, Emergency Medicine and Psychiatry applications, in order to improve patient outcome and quality of life.