Natus Medical Completes Acquisition of Bio-logic Systems.

SAN CARLOS, Calif. -- Natus Medical Incorporated (Nasdaq:BABY) announced that it has completed today its acquisition of Bio-logic Systems Corp. Bio-logic formerly traded on the Nasdaq National Market under the ticker BLSC.

Jim Hawkins, President and Chief Executive Officer of Natus, commented, "We are very pleased with the acquisition, as the combination of Natus and Bio-logic will strengthen our position as a market leader in the development of products for the detection, treatment, monitoring, and tracking of common disorders in newborns and children. In addition, we will be supplementing our hearing screening business with the addition of Bio-logic's leading diagnostic hearing products. The acquisition will also open up new market opportunities for Natus in the areas of EEG monitoring for neurology and in the growing diagnostic sleep market."

Natus acquired all the outstanding shares of Bio-logic common stock for $8.77 per share. In addition, for each share that was subject to a Bio-logic stock option, Natus paid an amount equal to the excess of $8.77 over the exercise price of the option.

Natus financed a portion of the purchase price through a new senior secured credit facility obtained through Wells Fargo Bank, N.A. The $10 million loan is fully amortizing over a period of four years and bears interest a LIBOR plus 2.5%. The loan has no substantial prepayment penalties and the Company expects to repay the loan prior to the end of its term. Natus also utilized approximately $12.8 million of Bio-logic's cash to fund the acquisition.

About Natus Medical

Natus develops, manufactures, and markets products for the detection, treatment, monitoring, and tracking of common disorders in newborns and children. Natus products are marketed under well-recognized brand names such as ALGO(R), Neometrics(TM), Echo-Screen(R), and neoBLUE(R). Headquartered in San Carlos, California, Natus markets and sells its products worldwide through a direct sales force in the U.S. and the U.K., and through distributors in over 80 other countries. Additional information about Natus Medical can be found at www.natus.com.

Bio-logic Systems Corp., with main production facilities located in Mundelein, Illinois, designs, develops, assembles and markets computer-based electrodiagnostic systems and related disposables for use by hospitals, clinics, school districts, universities and physicians. The systems conduct tests that are typically used by medical practitioners to aid in the diagnosis of certain neurological disorders, brain disorders and tumors, and sensory disorders, including audiological and hearing screening and diagnosis.

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 the expectation that Natus will pay the referenced loan off before the expiration of its term. 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 actual results, levels of activity, performance, or achievements to differ materially from those expressed or implied by the forward-looking statements. Forward-looking statements are only predictions and the actual events or results may differ materially. Natus cannot provide any assurance that the future results or the results implied by the forward-looking statements will meet expectations. The results could differ materially due to a number of factors. Natus disclaims any obligation to update information contained in any forward-looking statement.

More information about potential risk factors that could affect the business and financial results of Natus is included in Natus' annual report on Form 10-K for the year ended December 31, 2004, and its quarterly reports on Form 10-Q, and in other reports filed from time to time by Natus with the U.S. Securities and Exchange Commission.