Natus Medical Signs Three-Year Agreement with Parkland Health and Hospitals.

Business Editors & Health/Medical Writers

SAN CARLOS, Calif.--(BW HealthWire)--May 30, 2002

Natus named exclusive supplier of newborn hearing screen products

to one of the nation's leading birthing hospitals

Natus Medical Inc. ("Natus") (Nasdaq:BABY) announced today it signed a three-year contract that designates the Company as the exclusive supplier of newborn hearing testing products to Dallas-based Parkland Health & Hospital System (PHHS), one of the nation's leading birthing hospitals. Under Parkland procedures, each of the more than 16,000 babies born at its facility is screened for hearing impairment prior to discharge from the hospital, now using the latest ALGO(R) 3 Newborn Hearing Screener.

"Parkland is recognized for its fine health care programs, among them newborn hearing screening. We are delighted that this leading healthcare institution, having been a Natus customer for over twelve years, has decided to extend its relationship with Natus," said Ken Traverso, Natus' vice president of marketing & sales. "We join Parkland in a commitment to newborn health through its first-class, cost-effective Newborn Hearing Screening Program."

As part of this agreement, Parkland and Natus will also co-develop and produce Spanish/English language parental education materials that explain newborn hearing screening and the importance of follow-up testing and treatment when indicated.

Kris Owen, M.S. CCC-A, Audiology Coordinator for the PHHS Universal Newborn Hearing Screening Program, explained, "Identification of hearing impairment before hospital discharge and appropriate follow-up intervention can make a critical difference in an infant's future speech and language potential. If hearing-impaired infants do not receive service in the first months of life, they may have a very difficult time keeping pace with their peers."

Natus' ALGO hearing screeners test a baby's entire hearing pathway from the outer ear to and including the brainstem. Since hearing loss may occur at any point along the hearing pathway, the ALGO screener leaves nothing to chance. The ALGO screener incorporates Natus' exclusive AABR(R) technology -- the only automated ABR technology that provides standardized screening parameters that cannot be adjusted with fully automated pass/refer results that require no interpretation.

Natus Medical develops, manufactures and markets proprietary, non-invasive, easy-to-use, crib-side screening devices for the detection and/or monitoring of common disorders in babies. Natus is a market leader in sales of Newborn Hearing Screening equipment. 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. 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 have been distributed in approximately 20 other countries. Additional information can be found at www.natus.com.

Except for historical information and summary of contract terms, the trends discussed in this press release are forward-looking statements. These statements relate to future events or Natus' future financial performance and involve known and unknown risks, uncertainties and other factors that may cause Natus' or PHHS's 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," "will," "offer," "expects," "potential," "continue" or the negative 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 related to the PHHS agreement discussed in this press release, or otherwise, will meet expectations. Natus' operating results could differ materially due to a number of factors, including the continued growth of demand for newborn hearing screening equipment, continued acceptance of Natus' existing products, the successful implementation of the PHHS agreement discussed in this press release and the successful introduction and widespread market acceptance of Natus' new products.

For additional information and considerations regarding the risks faced by Natus, see its Registration Statement on Form S-1, as filed with the Securities and Exchange Commission, as well as periodic reports on Forms 10-Q and 10-K to be filed with the SEC. 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.