Aspect Medical Systems Secures Exclusive Rights to Commercialize New Brain Monitoring Technology for Depression

Business Wire, July 29, 2002

Business Editors & Health/Medical Writers

NEWTON, Mass.--(BW HealthWire)--July 29, 2002

Technology Designed to Increase Efficiency and Effectiveness

of Drug and Device Development and Patient Therapy

Aspect Medical Systems (NASDAQ: ASPM) has secured exclusive rights to commercialize innovative brain monitoring technology for depression developed at the Neuropsychiatric Institute and David Geffen School of Medicine at UCLA. The technology is designed to reduce the cost of antidepressant drug and device development, and the time required for patients to obtain effective therapy. Dr. Andrew Leuchter, Professor of Psychiatry and senior investigator for the depression research group at UCLA, will also serve as chair of Aspect's neuroscience advisory board. He brings to Aspect more than 15 years of clinical and research experience in depression and will lead the development of clinical strategy and application of this technology.

"We are extremely pleased to gain access to the UCLA technology and have Dr. Leuchter, the co-inventor of the technology and an internationally recognized researcher, lead our neuroscience advisory board," said Nassib Chamoun, president and CEO of Aspect. "We believe that these new resources, combined with the knowledge we have gained through more than a decade of brain research and experience in bringing BIS technology to the market, position us well as we seek to develop tools to aid the diagnosis and management of neurological diseases." He continued, "This is a natural extension of both our mission and our technology." Aspect's BIS(R) technology is currently being used to measure consciousness of anesthetized and sedated patients in operating rooms, intensive care units and other clinical settings worldwide.

The UCLA technology could aid in the development of new treatments for depression by differentiating between the brain wave patterns (EEG) of patients who respond to antidepressant drug or device therapy, and those who respond to a placebo. By identifying the trial subjects who are responsive to depression treatments, the technology could enable researchers to discover the most promising antidepressant compounds or devices sooner, with significantly fewer experimental subjects.

Commenting on his new position, Dr. Leuchter stated, "Aspect has demonstrated an ability to translate highly sophisticated data about brain activity into practical clinical tools. I look forward to working with their neuroscience team to create offerings that accelerate the development of new antidepressant drug and device therapies and ultimately prove to be valuable in clinical practice settings."

The UCLA technology has also been shown to predict - within days after treatment commences - whether or not patients will eventually experience relief from the particular antidepressant medication they are receiving. Currently, patients typically take antidepressant medications for eight weeks or longer before experiencing benefits, even though they may suffer side effects almost immediately. This can have negative consequences on treatment since many patients abandon their first prescription and never return for an alternative drug therapy.

"Our near-term objective is to integrate the UCLA technology and our BIS technology to provide a practical means for pharmaceutical and device companies to accelerate their drug and device development process. This could potentially reduce development costs and accelerate time-to-market," stated Philip Devlin, vice president of technology and general manager of Aspect's neuroscience division. "Longer-term, our goals are to introduce a product that aids in therapy management and helps patients suffering from depression feel better sooner."

The technology and research conducted at the David Geffen School of Medicine at UCLA has been widely recognized in peer-reviewed journals including The American Journal of Psychiatry, Neuropsychopharmacology, and Psychiatry Research, as well as mainstream media including The Wall Street Journal, The New York Times, The Washington Post, NPR, BBC and CNN.

About Aspect Medical Systems, Inc.

Aspect Medical Systems (NASDAQ: ASPM) is a global market leader in brain monitoring technology. The company's Bispectral Index (BIS) technology has been used to assess adequacy of anesthesia and sedation on more than 5 million patients and has been the subject of more than 1,050 published articles and abstracts in this field. Today, BIS is currently in use in the ORs and ICUs of more than 60 percent of the best-ranked hospitals with operating rooms in the U.S. (based on a U.S. News & World Report ranking of best hospitals) and is available in more than 160 countries. Aspect has secured OEM agreements with the six largest manufacturers of patient monitoring systems and partnerships with six of the largest group purchasing organizations in the United States. Aspect is also investigating how extensions of BIS technology may aid in the diagnosis and management of neurological diseases. Research in Alzheimer's disease and depression has been documented in peer-reviewed publications. Based in Newton, Mass., Aspect employs more than 220 people worldwide. For more information, visit the company's web site at http://www.aspectmedical.com.