Aspect Medical Systems and Draeger Medical Systems, Inc. Announce Development and Licensing Agreement; BIS Technology to be Integrated Across Monitoring Product Line.

Business Editors/Health/Medical Writers

NEWTON, Mass.--(BUSINESS WIRE)--Feb. 5, 2004

Aspect Medical Systems, Inc. (NASDAQ: ASPM) has entered into a multi-year, worldwide development and licensing agreement with Draeger Medical Systems, Inc., the Patient Monitoring subsidiary of Draeger Medical AG & Co.KGaA, Luebeck (Germany), to incorporate BIS(TM) technology into Draeger Medical multiparameter patient monitoring systems. Upon completion of development work, Draeger Medical will include BIS technology in current and future multi-parameter patient monitoring systems. Draeger Medical will be the first company to initiate widespread product integration of BIS technology. The companies expect that the BIS-equipped systems will be commercially available by the end of 2004.

"BIS technology is an important extension to our commitment to provide innovation in patient monitoring," said Bill Isenberg, President of Draeger Medical Systems, Inc. "Hospitals around the world are requesting BIS information, and we're pleased to work with Aspect to deliver an easy-to-use, integrated BIS solution."

Commenting on the agreement, Joan Rubin, director of global partnerships for Aspect stated, "This BIS development and licensing agreement will equip Draeger Medical patient monitoring systems to provide BIS technology across the continuum of patient care. This is a valuable component of our strategy to facilitate universal adoption of BIS technology."

About Aspect Medical Systems, Inc.

Aspect Medical Systems, Inc. (NASDAQ: ASPM) is a global market leader in brain monitoring technology. To date, the Company's Bispectral Index (BIS) technology has been used to assess more than 8.1 million patients and has been the subject of approximately 1,400 published articles and abstracts. BIS technology is installed in approximately 31 percent of all domestic operating rooms and is available in more than 160 countries. Aspect Medical Systems has OEM agreements with seven leading manufacturers of patient monitoring systems. For more information, visit Aspect's web site at www.aspectmedical.com.

About Draeger Medical

Draeger Medical is one of the world's leading manufacturers of medical equipment. As the largest division of Draegerwerk AG, Draeger Medical, A Draeger and Siemens Company, offers products, services and integrated systems throughout the entire patient care process in all CareAreas(TM) - Emergency Care, OR/Anesthesia, Critical Care, Perinatal Care and Home Care. Headquartered in Luebeck, Germany, Draeger Medical employs approximately 5,700 people worldwide. R&D and production are located at Luebeck, Germany, Best, Netherlands, Telford, Penn., and Danvers, Mass., USA, as well as Shanghai, China. The company has sales and service subsidiaries in over 40 countries and is represented in more than 190. In fiscal year 2002, the company increased its net sales by around 5 percent to reach 848.3 million Euro (2001: 805.4) and nearly doubled its EBIT reaching 75.3 million Euro in 2002 (2001: 39.0 million Euro). Draeger Medical continues to grow faster than the market, with a growth rate of around 7 percent per annum. The company increased its EBIT from 9.1 million Euro in 2000 to 75.3 million Euro in 2002, marking the first two years of its turn-around business. Draeger Medical provides innovative solutions that are the result of a close dialog with customers, years of experience in the market, and continuous investment in R&D. The company's goal is to improve the quality of patient care while supporting cost-reduction in the health care sector. Additional information about Draeger Medical can be found on the company's website at www.draeger-medical.com.

Safe Harbor Statement

Certain statements in this release are forward-looking and may involve risks and uncertainties. There are a number of factors that could cause actual results to differ materially from those indicated by these forward-looking statements. For example, Aspect may not be able to achieve widespread market acceptance of its BIS monitoring technology or to compete with new products or alternative techniques that may be developed by others including third-party anesthesia monitoring products approved by the FDA. Aspect also faces competitive and regulatory risks relating to its ability to successfully develop and introduce enhancements and new products. In addition, the Company has limited sales and marketing experience both in the U.S. and internationally and if it is unable to develop and implement a successful sales and marketing strategy, including with respect to its own sales force, domestic and international distributors, original equipment manufacturers and other direct and indirect sales channels, it will not be able to generate meaningful product revenue. Aspect's ability to become and remain profitable will depend upon its ability to promote frequent use of the BIS system so that sales of its BIS sensors increase. Aspect will not be profitable if hospitals and anesthesia providers do not buy and use its BIS systems in sufficient quantities. Cases of surgical awareness during monitoring with the BIS system and significant product liability claims are among the factors that could limit market acceptance. There are other factors that could cause Aspect's actual results to vary from its forward-looking statements, including without limitation those set forth under the heading "Factors Affecting Future Operating Results" in Aspect's Quarterly Report on Form 10-Q for the quarter ended September 27, 2003, as filed with the Securities and Exchange Commission. In addition, any forward-looking statements represent Aspect's views only as of the date of this press release and should not be relied upon as representing Aspect's views as of any subsequent date. While Aspect may elect to update forward-looking statements in the future, it specifically disclaims any obligation to do so, even if its expectations change. Therefore, you should not rely on these forward-looking statements as representing Aspect's views as of any date subsequent to the date of this press release.

Bispectral Index and BIS are registered trademarks of Aspect Medical Systems, Inc. A-2000 is a trademark of Aspect Medical Systems, Inc. All other trademarks, service marks and company names are the property of their respective owners.