Boston Medical Technologies Closes $10 Million Second Round Funding.

Business Editors

WAKEFIELD, Mass.--(BUSINESS WIRE)--Jan. 17, 2000

Collinson, Howe & Lennox is Lead Investor in Company Developing

Innovative, Noninvasive Heart Rate Variability Analysis Systems

Boston Medical Technologies, a leading developer of noninvasive systems for the measurement of Heart Rate Variability, announced today that it has completed its second round of financing for $10 million. Collinson, Howe & Lennox, Exeter Capital, Phoenix Home Mutual Life Insurance, in addition to an undisclosed multinational healthcare company participated along with initial round investors: Prism Venture Partners, Atlas Venture Partners and the Boston University Community Technology Fund in this financing. Funding will be used to accelerate sales and marketing efforts for the Boston Medical Technologies' Anscore(TM) Health Management System. The Company received $5.5 million in its initial round of funding in July, 1998.

The Anscore Health Management System is designed to help treating physicians measure a patient's Heart Rate Variability, which research has proven to be an indicator of autonomic nervous system health. Numerous published studies report that degeneration of the autonomic nervous system is associated with a broad range of life-threatening medical conditions, including diabetes, silent myocardial infarction and cardiac arrhythmia's. Without the ability to measure Heart Rate Variability, many of these conditions would go undetected until they are in their advanced stages. For example, published research shows that Heart Rate Variability can assist in the early detection of diabetic neuropathy, a crippling and often life-threatening complication of diabetes. Because diabetic neuropathy is asymptomatic in its early stages, the condition often goes undiagnosed until the patient is at risk for disability, amputation or even death.

Prior to the availability of the Anscore Health Management System, the treating physician did not have access to a quality controlled noninvasive method for testing Heart Rate Variability. As a result, Heart Rate Variability testing was used primarily in the research environment. The Anscore Health Management System enables a treating physician to conduct a definitive and noninvasive evaluation of Heart Rate Variability as part of a routine office visit. "We are delighted that these well-respected financial organizations have joined our core group of investors," said John Schafer, CEO and President of Boston Medical Technologies. "Development of the Anscore Health Management System is now complete, and this second round of funding will be used to accelerate the nationwide introduction of a clinically-practical, cost-effective and reimbursable solution for measuring a patient's Heart Rate Variability in the treating physician's office. Overall, the Anscore System will benefit the physician and the patient while reducing health care costs."

"Boston Medical Technologies has a foothold on a critical technology that will likely be of great benefit to the millions of patients annually whose health is compromised, yet the danger is undetected," said Ron Lennox, partner with Collinson, Howe & Lennox. "We foresee great opportunities for Boston Medical Technologies due to their state-of-the-art technology, experienced management team and unique business model."

About Boston Medical Technologies

Located in Wakefield, Massachusetts, Boston Medical Technologies was founded in 1994 to develop an innovative quality controlled, and completely noninvasive system approach to measuring Heart Rate Variability--how a patient's heart responds to paced respiration and controlled exercises. Clinical research has shown that Heart Rate Variability can detect early warning signs of autonomic neuropathy, a complication of the autonomic nervous system that affects every system in the body. The Anscore(TM) Health Management System is intended for use in any medical specialty where measurement of Heart Rate Variability is indicated, but the Company believes that the diabetes market may represent the largest potential market sector. The Anscore Health Management System gives a treating physician access to a clinically proven indicator of autonomic nervous system health. For more information, contact Boston Medical Technologies at [phone] or on the Web at http://www.bosmedtech.com.

Anscore(TM) Health Management System is a trademark of Boston Medical Technologies, Inc. All other Company and product names are the property of their respective owners.