| Caesarea, Israel & Framingham, MA — June 1, 2008 Itamar Medical announced today that it has received FDA clearance for a new sleep architecture and staging application. This new application provides extensive information about the sleep quality, including actual sleep time, and complete sleep architecture, including REM sleep, with further analysis of light and deep sleep stages. The Watch-PAT is the only diagnostic system that provides this extensive, detailed and accurate data without requiring the attachment of EEG electrodes, which in addition to offering unparalleled comfort level to patients undergoing a sleep study at their privacy and comfort of the home. In addition, the Watch-PAT system records multiple physiologic parameters throughout a sleep study and provides physicians with all parameters required to confirm or rule-out obstructive sleep apnea, including Apnea-Hypopnea Index (AHI), Respiratory Disturbance Index (RDI), Oxygen Desaturation Index (ODI), heart rate, snoring intensity and body position Following the receipt of the FDA clearance, Israel Schreiber, President & CEO of Itamar Medical, has noted: “Sleep disorders have profound effect on the quality of life and increased risks of cardiovascular events, diabetes, stroke and other morbidities in millions of people. The Watch-PAT offers one of the most effective diagnosis and management tools for clinicians caring for their patients, who can now be diagnosed in virtually any setting, in addition to a sleep laboratory, and obtain clinically comparable information including accurate quantification of all primary sleep parameters." Schreiber added that "this technology does not require physicians to compromise on the clinical information available to assess the effect of the sleep disorder on the actual sleep patterns." We are especially proud of the large body of evidence, including close to 40 peer-reviewed publications and over a hundred scientific presentations, confirming the efficacy of this innovative technology and its contribution to enhanced health standard of care and improved outcomes.” Gary Sagiv, Vice President for Itamar Medical overseeing all sales, education and support operations in the US has noted that: "our Watch-PAT has already been adopted by hundreds of providers around the US, including hospital-based and independent sleep laboratories, physician practices and major healthcare networks like Kaiser Permanente and the Veterans Hospitals (VA system). Following the recent decision by CMS to cover CPAP therapy following a sleep study conducted at home, more providers are adopting the Watch-PAT, which provides unparalleled benefits to patients tested at home, and with the new capabilities, diagnosing clinicians and referring physicians will receive information closely resembling the information provided following a sleep study in the laboratory. This is another exciting step in the development of the Watch-PAT into one of the most commonly used systems in the US”. Itamar Medical will introduce the new sleep architecture and staging application at the annual meeting of the Associated Professional Sleep Societies (APSS) to be held in Baltimore, MD on June 9 – 11, 2008. * * * Itamar Medical (TASE: ITMR) is a medical technology company developing non-invasive diagnostic systems using Peripheral Arterial Tone (PAT™) signal, including the Watch-PAT™ systems for the diagnosis of sleep related breathing disorders and the Endo-PAT™ systems for assessment of endothelial function, a condition recognized as an early stage of cardiovascular and cerebrovascular diseases. For further information see http://www.itamar-medical.com. For additional information please contact: Gary Sagiv, Vice President, Itamar Medical Inc. 160 Speen Street
Framingham, MA 01701 Tel: 1-888-748-2627 E-mail: sgary@itamar-medical.com | 
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