Raytel Medical Corporation Links with AT&T to Develop Internet Database for Physicians to Access Patient Heart Records; Patient Management Database will use AT&T Web Marketing Solution; Security Ensures Privacy of Patient Pacemaker, Arrhythmia and Holter Monitoring Tests.

SAN MATEO, Calif.--(BUSINESS WIRE)--Nov. 8, 1996--Raytel Medical Corporation (Nasdaq:RTEL) today introduced an innovative Internet application that will enable physicians to directly access cardiac patient test results online.

This new service meets a critical need of physicians who want to gain faster access to more comprehensive patient data to meet the requirements dictated by manged care contracts. The Raytel Patient Management Database maintains strict security protocols, requiring users to pass through several security levels, consistent with ensuring privacy of patient records.

Building from a database of more than 200,000 patients who are monitored by Raytel's transtelephonic pacemaker, arrhythmia and Holter services, Raytel will offer physicians the ability to access any of their patients' last six tests, including ECG images and other vital cardiac data. The Raytel Patient Management Database was developed by Raytel and AT&T. AT&T provided the web site, while Raytel employees developed the Intranet database server. The patient test information is stored on AT&T's server.

Richard F. Bader, Chairman and Chief Executive Officer, said, "Raytel is proud of being the leading provider of telephonic cardiac monitoring services in the United States. The limitation of telephonic monitoring has been that the process began and ended with the patient's test. This new and exciting product completes the loop by connecting physicians to the test results over the Internet, fulfilling our objective of providing the most advanced services to our physicians and their patients in a cost-effective manner. By accessing patient data through the Internet, physicians will be able to reference critical medical histories much faster, and without costly investment in software and hardware upgrades. They will also be able to sort through the records using customized search criteria."

"The Raytel Patient Management Database is one of the most innovative and useful applications of the Internet we have seen," said Gail McGovern, AT&T Executive Vice President. "We believe that Raytel's network of more than 15,000 physicians will find this service more than meets their needs."

Bader said Raytel selected AT&T for the project because of the communications giant's expertise in developing Internet-based solutions. AT&T Web Marketing Solution is a turnkey solution designed to help companies establish a full-featured electronic business on the Internet. It is the first industry offer to integrate all the critical elements necessary for a sucessful Internet-based business, including access, hosting, advertising and one-stop customer care.

Raytel, headquartered in San Mateo, CA, is developing a network of integrated heart centers that are associated with existing hospitals and physician practices. These centers integrate cardiologists and other physicians with the facilities through a set of diagnostic and therapeutic protocols designed to provide a high level of care at a competitive price. Integrated heart centers represent an innovative method of delivering high quality, cost-effective cardiac care.

In an integrated heart center, cardiovascular disease management, including diagnostic, therapeutic, and post-therapeutic (long term wellness) care, is managed through a single organization, with most procedures performed at a single location. Raytel provides a variety of medical services, focusing on the needs of patients with cardiovascular disease and is the leading provider of remote cardiac monitoring and testing services utilizing transtelephonic technology in the United States.

CONTACT: Raytel Medical Corporation

E. Payson Smith, 415/349-0800

or

AT&T

Mike Cuno, 908/221-5563

or

Morgen-Walke Associates, for Raytel

Chris Danne/Todd Friedman/Doug Sherk, 415/296-7383

Emily Dupree/Elissa Grabowski,

212/850-5698 or 212/850-5600