Grant Funds Clinical Trails of ARES

Carlsbad, CA - February 20, 2002

Advanced Brain Monitoring, Inc. today announced a $1.2 million award from the NHLBI, National Institutes of Health (NIH) Small Business Innovation Research (SBIR) program to fund clinical trials of the Apnea Risk Evaluation System (ARES).

The patent-pending ARES is an easy-to-apply, in-home system for quantifying level of risk for sleep apnea. The award funds evaluations of ARES in comparison to sleep laboratory diagnostic tests on 400 patients referred for assessment, a healthy control group and a group of patients with sleep apnea risk factors such as hypertension and cardiovascular disease.

ARES combines a miniaturized, battery-powered device to measure blood oxygen levels, pulse rate, snoring sounds and head position with a questionnaire to assess risk factors associated with sleep apnea. Proprietary software provides automated data analysis and interpretation, incorporating knowledge obtained by Dr. Philip Westbrook, the Company's Medical Director during 30 years practicing sleep medicine.

Sleep apnea is a highly prevalent, underdiagnosed, potentially life-threatening disorder, Westbrook commented, Untreated sleep apnea results in daytime drowsiness and increased risk of hypertension and cardiovascular disease.

The National Sleep Foundation estimates that over 18 million Americans have sleep apnea and over 90% have not yet been diagnosed. Untreated apnea patients are 3-5 times more likely to be involved in industrial and motor vehicle accidents, due to slower reaction times and impaired vigilance.

Chris Berka, Chief Executive Officer of Advanced Brain Monitoring commented, "We are pleased that the NHLBI chose to fund the ARES clinical trials. ARES will offer an easy and inexpensive method for assessing level of risk for sleep apnea. It is a member of the family of products we are developing that are portable, inexpensive and easy-to-use."

Advanced Brain Monitoring has developed patented technologies for monitoring and interpreting physiological signals. In combination with proprietary databases, these technologies enable the detection of drowsiness, the diagnosis of disease, and the evaluation of pharmaceuticals. These products have medical, industrial and consumer markets, offering solutions to the problems of workplace fatigue, diagnosis of sleep and neurological disorders and evaluation of pharmaceuticals. The Company is seeking investor financing and strategic alliances to support commercialization of its products.

This research is supported by NIH NHLBI grant number HL66829-02.