Protocol Systems Inc. introduces Modem Propaq vital signs monitor.

BEAVERTON, Ore.--(BUSINESS WIRE)--April 3, 1997--

- A Low-Cost Telemedicine Solution For Remote

Monitoring Of Patients Inside And Outside The Hospital -

Protocol Systems Inc. today introduced telephone modem communications capability for its Propaq(R) vital signs monitors. The Modem Propaq monitor is capable of transmitting patient vital signs data via a simple telephone modem to Protocol's Acuity(R) System central surveillance workstation. The Modem Propaq will give health care providers the flexibility to remotely monitor patients located both inside and outside the hospital from a central nursing workstation.

"Protocol is committed to providing Flexible Monitoring(R) solutions that enable today's health care providers to care for higher acuity patients in lower cost care areas down the continuum of care," said James B. Moon, Protocol(R) president and chief executive officer. "This could include clinicians located in a hospital care unit monitoring patients located in a different care unit in the hospital or even patients located in facilities outside of the hospital such as skilled nursing, long-term care, outpatient, and the home."

The Modem Propaq provides remote viewing and control of multiple patient vital signs including heart rate, electrocardiography (ECG), non-invasive blood pressure, impedance respiration, apnea, temperature, pulse oximetry, and capnography. The transmission of vital signs from the Modem Propaq monitor includes multiple wave forms as well as numeric data. Both the Propaq Encore and the Propaq 100 Series monitors may be configured with the modem communication capability.

The Modem Propaq received clinical testing and validation from Integris Baptist Medical Center in Oklahoma City, Okla. For the past 18 months the hospital has utilized between 10 and 15 Modem Propaq monitors connected to patients in a variety of care units, including general medical/surgical, renal dialysis, women services, and even outside the hospital in the home care of congestive heart failure patients.

"In addition to enabling us to monitor patients in lower cost settings, the Modem Propaq lets us expand vital signs monitoring with 24-hour full disclosure to care areas traditionally not equipped with this service," said Leona Marion, RN, MS, coronary care/PCCU nurse manager, Integris Baptist Medical Center. "The Modem Propaq allows us to monitor geographically-dispersed patient populations both in and outside the hospital and immediately respond to care unit patient overflow issues. We've been able to quickly flex our monitoring capabilities as floors have been closed or consolidated. We have also avoided deploying patients to high cost ICUs."

Another hospital using the Modem Propaq monitor is Inova Fairfax Hospital located in Falls Church, Virginia. The hospital's anesthesiology group utilizes the Modem Propaq in combination with patient-controlled analgesia (PCA) to monitor post-surgical total abdominal and vaginal hysterectomy patients.

"Our mission is to provide an out-patient alternative to in-patient post-surgical recovery and pain control of hysterectomy patients," said Jay Iaconetti, MD, of Fairfax Anesthesiology Associates, Inc. "We are evaluating the Modem Propaq and its remote monitoring capability to provide a low-cost safety net that allows our patients to recover at home."

The high-speed modem is approved for worldwide use and meets strict electromagnetic emissions medical standards. The suggested list price for the modem communication capability is $800 per supported patient and is in addition to the cost of the Propaq monitors and Acuity central surveillance system. Modem Propaq monitors are expected to be available for customer shipments in the second quarter of 1997.

Protocol's Flexible Monitoring network includes portable Propaq and Modem Propaq vital signs monitors and/or Protocol Cordless(R) ECG telemetry transmitters connected to the Acuity central workstation using Ethernet TCP/IP communication protocols. Using Flexible Monitoring, health care providers can provide networked, multiple-parameter monitoring at the point of care anywhere along the patient care continuum. It allows clinicians to triage higher acuity patients to lower cost areas where nurse to patient ratios are lower, while still providing comprehensive vital signs monitoring. The system has been documented as helping to eliminate bottlenecks in the ICU/CCU, freeing critical care beds for critically ill patients, improving patient flow and productivity, and lowering hospital operating costs.

Protocol Systems Inc. (NASDAQ: PCOL) designs, manufactures and markets patient monitoring instruments and systems utilizing innovative design, advanced software concepts and leading electronic technology. Based in Beaverton, Ore., with a wholly-owned subsidiary, Pryon Corporation, located in Menomonee Falls, Wis., the company employs 401 people. Protocol's products are available in more than 80 countries around the world. -0-

This press release contains forward-looking statements that involve risks and uncertainties, including but not limited to those regarding the Company's expectation that the Modem Propaq will be shipped in the second quarter 1997 and will provide a low-cost telemedicine solution for remote monitoring of patients inside and outside the hospital. Actual results could vary materially from the description contained herein due to many factors, including but not limited to, product demand and market acceptance risk, the effect of economic conditions, the impact of competitive products and pricing, product development, commercialization and technological difficulties, capacity and supply constraints or difficulties, actual purchases under agreements, the effects of the Company's accounting policies, and other risks detailed in the Company's Securities and Exchange Commission filings. Protocol, Propaq, Acuity, Flexible Monitoring, and Protocol Cordless are registered trademarks of Protocol Systems Inc.

Other product and company names mentioned herein are for identification purposes only and may be the trademarks or registered trademarks of their respective companies.

All prices listed are U.S. suggested retail prices.

CONTACT: Protocol Systems Inc.

Grant Gibson, 503/526-8500

URL: http://www.protocol.com