Natus Medical Awarded Three-Year Supplier Agreement by Novation for Hearing Screening Products

Business Wire, May 17, 2005

SAN CARLOS, Calif. -- Natus Medical Incorporated (Nasdaq:BABY) today announced that the Company was awarded a three-year, dual-source capital equipment supplier agreement for infant hearing screening products by Novation, the supply company of VHA Inc. and the University HealthSystem Consortium (UHC). Under this agreement, Natus is designated as a contracted provider of newborn hearing screening products, making its products available to approximately 2,300 VHA and UHC member health care organizations.

Jim Hawkins, President and Chief Executive Officer of Natus stated, "We are pleased to continue our relationship with Novation and the member organizations it serves through this contract award for our ALGO(R) Newborn Hearing Screener and Echo-Screen(R) Hearing Screener product lines. We share in Novation's dedication to provide hospitals cost-effective and clinically superior products and services."

About Novation LLC.

Based in Irving, Texas, Novation was established in January 1998 through a combination of the supply programs of VHA and UHC, two national health care alliances. Novation serves the purchasing needs of more than 2,300 members and affiliates of VHA and UHC. These organizations used Novation contracts to purchase more than $23 billion in supplies in 2004.

About Natus

Natus develops, manufactures, and markets products for the detection, treatment, monitoring, and tracking of common disorders in newborns and children. Natus products are marketed under well-recognized brand names such as ALGO(R), Neometrics(TM), Echo-Screen(R), and neoBLUE(TM). Headquartered in San Carlos, California, Natus markets and sells its products worldwide through a direct sales force in the U.S. and the U.K., and through distributors in over 50 other countries. Additional information about Natus Medical can be found at www.natus.com.

More information about potential risk factors that could affect the business and financial results of Natus is included in Natus' annual report on Form 10-K for the year ended December 31, 2004, and its quarterly reports on Form 10-Q, and from time to time in other reports filed by Natus with the U.S. Securities and Exchange Commission.

Natus(R), AABR(R), AOAE(R), ALGO(R), ALGO DataBook(R), 70/40(R), Cochlea-Scan(R), Echo-Screen(R), Ear Couplers(R), Flexicoupler(R), Jelly Tab(R), Jelly Button(R), and MiniMuffs(R) are registered trademarks of Natus. Convert2Natus(TM), DataLink(TM), EchoLink(TM), neoBLUE(TM), Natus Elite(TM), neoBLUE mini(TM), Neometrics(TM), Metabolic Screening Database System (MSDS)(TM), Case Management System (CMS)(TM), Voice Response System (VRS)(TM), Web Electronic Birth Page (Web-EBP)(TM), and Accuscreen(TM) are non-registered trademarks of Natus. Solutions for Newborn Care(SM) is a non-registered service mark of Natus.