Itamar Medical and Medtronic Announce Further Cooperation to Advance Diagnostic Innovation.

Business Editors, Health/Medical Writers

CAESARIA, Israel/MINNEAPOLIS--(BW HealthWire)--May 9, 2000

Itamar Medical Ltd., Inc. and Medtronic Inc. (NYSE: MDT) today announced that Medtronic has made a significant investment in Itamar. The proceeds of this new investment will enable Itamar to accelerate and broaden its research, development and initial commercialization efforts involving peripheral arterial tonometry, PAT(TM), a unique physiological signal which can be measured by the company's proprietary products noninvasively and has been shown to provide substantial medical information.

"As a global medical technology company, Medtronic seeks to develop strategic partnerships that advance the frontiers of innovation and enhance the quality of life for patients suffering from chronic conditions," said Glen Nelson, M.D., Vice Chairman of Medtronic. "We believe that Itamar's innovative diagnostic systems based on the PAT(TM) signal promise to yield significant clinical benefits in multiple disease categories."

"We are most gratified that a leader in the medical device field of Medtronic's stature has chosen to enhance its partnership with us," said Dr Giora Yaron, Chairman of Itamar. "We are confident that our initial products now in final development have the potential to substantially improve many aspects of healthcare by beginning to make available to the medical community the wealth of information present in the PAT(TM) signal," Dr Yaron continued. "These new resources will allow us to both prepare for the commercialization of these initial products and to evaluate the usefulness of this exciting new technology in additional areas of medicine."

Peripheral arterial tonometry is based on Itamar's 1997 discovery of a neurovascular signal that, in conjunction with Itamar's proprietary Digital Signal Processing technology and interpretation algorithms can provide valuable medical data on conditions involving the cardiovascular and autonomic nervous systems. By monitoring these signals via a noninvasive finger probe, clinicians can open a diagnostic window on a variety of complex conditions without risk or discomfort to the patient. In addition the PAT(TM) signal is ideally positioned for the emerging e-health delivery market. The signal can be distributed via e-healthcare channels for remote monitoring, as well as viewed in traditional medical settings such as hospitals and clinics.

Ongoing studies at leading research centers in the United States, Europe and Israel have demonstrated that the PAT(TM) signal has the potential to identify and monitor such conditions as obstructive sleep apnea syndrome (OSAS), endothelial dysfunction, congestive heart failure, other cardiac diseases and stress.

Itamar plans to introduce the PAT(TM) signal to sleep medicine specialists at the Associated Professional Sleep Society (APSS) meeting in June 2000. APSS is a joint meeting of the Sleep Research Society (SRS) and the American Sleep Disorders Association (ASDA). Introductions of the use of the PAT(TM) signal in other medical areas are planned for later this year. The Company's initial products, a bedside monitor and a wristwatch type product, are targeted for commercial introduction next year, subject to obtaining the required regulatory approvals.

Itamar Medical Ltd., established in 1997, is a privately held corporation headquartered in Caeseria, Israel. It is dedicated to the research, development and testing of its innovative PAT(TM)signal, leading to better quality of medical care and improved medical practices.

Medtronic, Inc. headquartered in Minneapolis, is the world's leading medical technology company, providing lifelong solutions for people with chronic disease. Medtronic's strategic partnership with Itamar Medical is part of its continued efforts to expand its e-healthcare offerings, and its dedication to improving the quality of life for those suffering chronic illnesses. Medtronic's Internet address is www.medtronic.com.

Any statements made about Medtronic's anticipated financial results and regulatory approvals are forward-looking statements subject to risks and uncertainties such as those described in the company's Annual Report and Form 10-K for the year ended April 30, 1999. Actual results may differ materially from anticipated results.