ResMed Acquires Leading German Sleep Company

San Diego, CA - February 19, 2001

ResMed Inc, a worldwide leader in the sleep-disordered breathing marketplace, announced today that it has acquired all of the outstanding shares of MAP Medizin-Technologie GmbH, Munich, Germany. The total transaction is valued at approximately US$ 69 million, to be paid in cash and the assumption of debt.

MAP designs, manufactures and distributes medical devices for the diagnosis and treatment of sleep-disordered breathing (SDB) with a particular focus on obstructive sleep apnea. MAP has built a leadership position in the German market and has expanded to surrounding countries where it has subsidiaries in Austria, Holland, Switzerland, and France.

Christopher Roberts, Ph.D., Executive Vice-President of ResMed Inc., commented: "Germany is the second largest SDB market in the world, and MAP is the market leader in Germany with both its diagnostic and treatment devices. We are very pleased that MAP will be joining forces with us. MAP's strengths in R&D, sales and marketing complement those of ResMed and will strengthen ResMed's market leadership position in Europe. The acquisition of MAP represents a significant step forward in ResMed's global strategy and will assist ResMed's European expansion."

Dr. Stefan Madaus, MAP's CEO stated: "The MAP team is looking forward to working with a successful, truly global company. We believe that we will now have the resources to make an even stronger contribution with innovative devices for the diagnosis and treatment of sleep-disordered breathing."

"The MAP management team is to be congratulated for having taken the company to the number one position in Germany in just six years and we are delighted to partner with them," said ResMed Chairman and Chief Executive Officer, Peter Farrell, Ph.D. "This acquisition comes at the right time for us when we are looking at opening up new areas of business in both the diagnosis and treatment of sleep-disordered breathing in patients with chronic obstructive pulmonary disease, congestive heart failure and post stroke."

ResMed is a leading developer, manufacturer, and marketer of medical equipment for the diagnosis and treatment of sleep-disordered breathing, selling a comprehensive range of products in over 50 countries. When ResMed was formed in 1989, the primary purpose of the company was to commercialize a device for treating obstructive sleep apnea that had been developed in 1981 by Professor Colin Sullivan and colleagues at the University of Sydney, in Sydney, Australia. This device, nasal continuous positive airway pressure (CPAP) was the first successful noninvasive treatment of obstructive sleep apnea. ResMed's website is located at www.resmed.com.