Natus Marks 10 Million Screens With ALGO; Company Focuses on International Newborn Hearing Screening Awareness with Key Promotion.

Business Editors/Health/Medical Writers

SAN CARLOS, Calif.--(BUSINESS WIRE)--July 15, 2003

Natus Medical Incorporated (Nasdaq:BABY) today announced that its ALGO(R) newborn hearing screening technology has been used in screening more than 10 million newborns worldwide. The Company further reported that it plans a stepped up campaign to increase international awareness of newborn hearing screening with the immediate promotion of Judith A. Marlowe, Ph.D., FAAA, to the newly created position of executive director, audiology and professional relations.

"We are extremely pleased to have reached this global newborn hearing screening milestone. We believe we are making significant strides in the international market. At the same time, our ALGO is now being used to screen more than two million U.S. born babies each year, allowing us to maintain our position as a domestic leader in newborn hearing screening," said Tim Johnson, Natus' president and chief executive officer.

"Dr. Marlowe is a renowned advocate of newborn hearing screening, having presented at more than 100 conferences and lectures around the world and having authored more than 20 scientific journal articles," added Mr. Johnson. "We believe that Judith has greatly contributed to making newborn hearing screening a standard of care in the U.S. and we are counting on her to bring her enthusiasm and knowledge to advance awareness of the benefits of early detection overseas."

In her new position, Dr. Marlowe will be responsible for developing and maintaining relationships with professional organizations and clinicians to encourage adoption of early detection programs and will initiate and foster collaborations with government and consumer groups to advance program implementation. Dr. Marlowe will also continue to advocate newborn hearing screening through publications and presentations worldwide. Additionally, she will oversee clinical training and education quality for Natus and provide audiological and clinical support for new product development.

Dr. Marlowe's contribution to newborn hearing screening has spanned 20 years including having established one of the first, hospital-based, universal newborn hearing screening programs in the U.S., in Winterpark, Fla. in 1983. For the past 10 years, she served with Natus, most recently as director of program development and previously as director of clinical research and programs.

In addition to her Natus responsibilities, Dr. Marlowe is an adjunct honors professor at Thomas More College, Crestview Hills, Ky. She also develops course content for CD ROM worldwide training tools as the consulting director of program development for the Auditory-Verbal Learning Institute, Tampa, Fla. Prior to joining Natus in 1993, Dr. Marlowe operated her own practice for nearly 10 years, providing complete diagnostic and rehabilitative hearing services with an emphasis on pediatric audiology. In addition to the many organizations she has served as a director, Dr. Marlowe was also a founding director of Auditory-Verbal International.

About Natus Medical

Natus develops, manufactures, markets and distributes medical products for the detection and management of common disorders in newborns. Natus is a market leader in sales of newborn hearing screening equipment and supplies with its ALGO(R) product line. In July 2003, Natus acquired Neometrics Inc., a supplier of data systems used in 18 state health departments for various newborn screenings, including hearing screening data collection and management. Natus also manufactures and distributes MiniMuffs(R) Neonatal Noise Attenuators and the CO-Stat(R) End Tidal Breath Analyzer, a technology that non-invasively detects the rate of hemolysis in newborns, an important tool in the management of neonatal jaundice. Additionally, Natus manufactures and sells the neoBLUE(TM) LED Phototherapy light for the treatment of neonatal jaundice. Natus sells and supports its products domestically through direct field sales representatives and clinical educators. Natus products are distributed by its wholly owned subsidiaries in Japan and in the U.K. and are distributed in approximately 24 other countries. Additional information can be found at www.natus.com.

This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, particularly statements regarding the expectations, beliefs, plans, intentions, and strategies of Natus. These forward looking statements include, but are not limited to, statements regarding future domestic or international sales levels or opportunities, and anticipated revenues and bottom-line results in the future. These statements relate to future events or Natus' future financial performance or results and involve known and unknown risks, uncertainties and other factors that may cause Natus' actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by the forward-looking statements. In some cases, you will be able to identify forward-looking statements by terminology such as "anticipates," "may," "believe," "should," "plan," "will," "offer," "expects," "potential," "continue" or the negative or derivatives of these terms or other comparable terminology. Forward-looking statements are only predictions and the actual events or results may differ materially. Natus cannot provide any assurance that its future results will meet expectations. Natus' operating results could differ materially due to a number of factors, including the continued growth of demand (or absence of continued growth of demand) for newborn hearing screening equipment, continued acceptance of Natus' existing products, the successful development, introduction and widespread market acceptance of Natus' new products, domestic and global economic conditions, competition from other companies selling newborn screening products, the failure of states or foreign countries to adopt mandates or guidelines requiring screening for the disorders for which Natus' products screen, the failure of third party payors to provide adequate reimbursement for the use of Natus' products, adverse changes in Natus' relationships with its suppliers, reduced revenue as a result of discounts given to organizations representing several end customers for Natus' products, failure to obtain necessary regulatory clearances or approvals, adverse changes in Natus' relationships with its distributors, and product liability and intellectual property disputes or litigation.

For additional information and considerations regarding the risks faced by Natus, see Natus' reports on Forms 10-Q and 10-K filed and to be filed with the Securities and Exchange Commission. Although Natus believes that the expectations reflected in the forward-looking statements are reasonable, Natus cannot guarantee future results, levels of activity, performance or achievements. In addition, historical information should not be considered a predictor of future performance. Moreover, neither Natus nor any other person assumes responsibility for the accuracy and completeness of these forward-looking statements. Natus disclaims any obligation to update information contained in any forward-looking statement.

natus(R); 70/40(R); ALGO(R); AABR(R); ALGO 1e(R); ALGO-1 Plus(R); ALGO 2(R); ALGO DataBook(R); Dri-Prep(R); Ear Couplers(R); Jelly Button(R); Flexicoupler(TM); Jelly Tab(TM); MiniMuffs(R); CO-Stat(R); and neoBLUE(TM); Neometrics(TM); Accuwell(TM); Accuscreen(TM); CEM(TM); CMS(TM); Neocoat(TM); MSDS(TM); VRS(TM); and WebEBP(TM) are Natus trademarks.