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SEISMED INSTRUMENTS ANNOUNCEMENT

 MINNEAPOLIS, May 19 /PRNewswire/ -- The board of directors of Seismed Instruments Incorporated announced today that it has decided that the company will cease active operations.
 The management of the company has explored various options including a search for a corporate partner, strategic alliance, selling the company, or raising additional financing to continue the operations. The company has been unsuccessful in these efforts. After reviewing the remaining options available, the board determined that this decision is in the best interest of the company.
 The company's initial strategy was the development of the SCG-2000 seismocardiograph, which applies the company's seismocardiography (SCG) technology to the evaluation of cardiac function and to the detection of coronary artery disease for the stress testing market. The company is in the process of completing development of the SE-4000 which combines a stress electrocardiograph with the seismocardiograph into a single instrument, but final design, testing, and regulatory compliance have not been completed for this system. Continued development of this product would require significant financial resources.
 The company has been unable to resolve the issues which have limited the market acceptance of its products. In the area of third party reimbursement, the company has applied for but failed to obtain a CPT code or a national Medicare coverage policy for stress SCG testing, and it now appears that these approvals will not be available before January 1995, at the earliest. Efforts to optimize the quantitative analysis software, which is designed to assist the physician in interpreting the SCG waveform have also been unsuccessful.
 The company intents to lay off most of its 13 employees by the end of May, and complete the majority of its wind-down efforts by the end of June. If the obligations of the company to its creditors can be satisfied with existing resources, it is not contemplated that the company will go through a bankruptcy proceeding or otherwise be liquidated or dissolved. The company anticipates that the members of the board of directors and management will resign upon the completion of the process of winding down operations. Whether it will be possible for the company to continue in any form after the end of June will depend upon the ability of the company to raise additional capital which, at present, appears unlikely. It is anticipated that there will be no further public market for the company's common stock.
 -0- 5/19/93
 /CONTACT: Dennis J. Thalhuber, CFO of Seismed Instruments, 612-473-5151 or (fax) 612-473-1311/


CO: Seismed Instruments Incorporated ST: Minnesota IN: MTC SU:

AL -- MN006 -- 0255 05/19/93 11:29 EDT
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Publication:PR Newswire
Date:May 19, 1993
Words:427
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