Frost & Sullivan Finds Medcare's Competitive Strategy Approach a Success.

Business Editors/Health/Medical Writers

PALO ALTO, Calif.--(BUSINESS WIRE)--Dec. 8, 2003

While conducting research in the U.S. Electroencephalography Diagnostic and Monitoring Equipment Market, Frost & Sullivan studied Medcare's very strong, and growing, dominance in the sleep diagnostics market that has followed since the recent merger of Medcare Diagnostics and Flaga Medical.

Although there have been a number of competitive positioning changes among sleep diagnostic device manufacturers in the past few years, none have propelled a company as rapidly as the recent acquisition of Medcare Diagnostics by Flaga Medical. The new entity, Medcare, offers a new and unique strategy, everything a sleep company needs under one roof.

In the same study, Frost & Sullivan named Medcare as the recipient of its 2003 Competitive Strategy Award. Frost & Sullivan presents this award each year to a company whose competitive strategy has yielded significant gains in market share during the research period. Medcare has taken advantage of recent market changes and executed an innovative merger strategy within the competitive landscape, empowering the company to overtake the competition.

"As a result of its strategic acquisition and subsequent strengthening of its product line and distribution channels," says Frost & Sullivan analyst Katherine Shariq, "Medcare is positioned to become the leading sleep diagnostic equipment provider in the U.S. by year-end 2003."

About Medcare

Medcare, the global leader in sleep diagnostics, provides complete sleep diagnostic solutions. Whether it's equipment, analysis software, sensors and accessories, education services, business software or marketing tools, Medcare delivers everything needed to succeed in Sleep. Medcare is the result of a 2002 merger between Flaga Medical and Medcare Diagnostics. Both companies had experienced rapid growth in recent years and achieved a solid market position. Together, their combined resources in product development have enabled the new Medcare to make significant advances to the benefit of the sleep industry and individual patients. Further, a unified product platform has taken the already powerful portfolio from both these companies to a new level while the strengthened customer support team continues to give expert professional and personalized service.

About Frost & Sullivan

Founded in 1961, Frost & Sullivan is recognized as a global leader in growth consulting. Frost & Sullivan Awards are presented to companies that demonstrate excellence in their industry, commending the diligence, commitment, and innovative business strategies required to advance in the global marketplace. Frost & Sullivan rigorously analyzes specific criteria to determine award recipients in a vast variety of market industries and landscapes. For further information, visit www.frost.com.