March 21, 2005

Compumedics today announced a key distribution agreement in China with Celki Medical Company (Celki), a medical equipment company that will exclusively distribute Compumedics sleep diagnostic equipment to the South of China. The new China distribution contracts signed by Celki and Best- Med (China) Development Ltd (Best-Med) with Compumedics represent $1.4m for year one with high “China-Growth” outlook.

Compumedics Announces Key Distribution Agreement in China to coincide with World Sleep Day

Melbourne Australia, Monday 21st March 2005 (World Sleep Day)

Compumedics Limited (ASX: CMP) a world leader in sleep diagnostics today announced a key distribution agreement in China with Celki Medical Company (Celki), a medical equipment company that will exclusively distribute Compumedics sleep diagnostic equipment to the South of China. The new China distribution contracts signed by Celki and Best- Med (China) Development Ltd (Best-Med) with Compumedics represent $1.4m for year one with high “China-Growth” outlook.
In commenting on the new distribution agreement, Compumedics Limited Executive Chairman and CEO, David Burton, said the new distributor, Celki, will provide Compumedics with stronger coverage of China in the South with Compumedics’ existing, long term and highly respected distributor, Best -Med already covering the North of China.

“Compumedics’ North and South China distributors have extensive experience in sleep diagnostic technologies and are well positioned to retain Compumedics’ key position as the primary supplier of quality sleep diagnostics systems within China. With the present world focus upon sleep disorders, World Sleep Day on Monday, 21st March 2005 will further heighten awareness in China and help accelerate the ever increasing need to diagnose patient’s sleep disorders as the first step to treatment”.
“The China market is growing exponentially following the entrance of China into the World Trade Organisation. The major impact of this is that imports of foreign equipment and expertise have increased significantly. Furthermore China has also recently changed its policy allowing physicians to train overseas, fuelling even stronger demand for quality and sophisticated medical diagnostic systems, he said”.

Compumedics already has diagnostic equipment installations in some of China’s leading hospitals including government hospitals, military hospitals and major teaching hospitals in cities such as Beijing, Nanjing, Shanghai and Xian.
Mr Burton said that, “World Sleep Day on 21st March 2005 brings into focus the enormous undiagnosed sleep disorder population of China and once again China cannot be underestimated as one of the growth engines of today’s global economy. The Chinese people are both deserving and highly capable of raising their health standards, including deriving the enormous benefits, which can be achieved through addressing the diagnosis of the large population of undiagnosed Chinese sleep disorder sufferers. More than 10,000 people in Beijing, Shanghai, Hangzhou, Guangzhou and some other large Chinese cities, have participated in worldwide sleep surveys and World Sleep Day. In 2002, it was the first time for China to take part in such an event. The ongoing program has been an important part of a multi-national, simultaneous, survey conducted across more than 20 countries and regions. The ongoing survey aims to collect scientific information about people’s sleep patterns and the problems with insomnia”.
“The surveys conducted from commencement in 2002, have made a study of the sleep patterns of over 50,000 subjects worldwide. Each participant has answered written questions about his or her work, sleep habits, hypnotherapy and regular sleeping patterns including time, duration and snooze frequency”.
“The research material obtained from the surveys has been invaluable in determining the cause and effect and scale of the world-wide problems associated with sleep patterns and the prevalence of insomnia, he said”.

Experts point out that insomnia is a disease that should be treated according to different causes.
From a worldwide perspective two Chinese Professors recently commented on the impact of sleep on society in China by making the following statements:
Professor Li Shunwei of Beijing Union Medical College Hospital said,” that the whole of society is asked to pay attention to the quality of Sleep”.
Professor Gu Niufan of the Shanghai Mental Health Centre said,” that over 10% of the population in industrial countries suffers from insomnia”.
A survey conducted by the Shanghai Traditional Chinese Medicine Hospital shows that more than 15% of Shanghai citizens are troubled by insomnia.
As part of Compumedics ongoing commitment to developing the growing market in China, the company recently organised for Dr. Kate Crowley, Senior Compumedics’ Scientist to conduct a lecture tour on “Sleep and Aging”. Dr. Crowley is now presenting to Chinese professionals in Shanghai and Guangzhou. This event is organised in conjunction with the Chinese Medical Association, Chinese Government hospitals and Chinese Military hospitals. Further programs have already been planned with Dr. Ken Whitton, who heads up Compumedics’ China sleep market business development.
Compumedics as world leader in sleep diagnostics, is well positioned in China to assist through its strong distribution capabilities in both North and South of China and will continue to be at the forefront of Research and Development in this area.
Compumedics Limited Background
Compumedics was founded in 1987 by David Burton, the company’s Executive Chairman and CEO. In that year it established Australia’s first fully computerised sleep clinic at Melbourne’s Epworth Hospital. A major breakthrough was achieved in 1995 when the company was selected to supply equipment to the US Sleep Heart Health Study, which was the largest clinical trial ever undertaken up to that time.
A sleep disorder is a medical condition that affects a person’s ability to have a “normal” night’s sleep. There are 84 classified sleep disorders ranging from snoring, obstructive sleep apnoea (OSA) and insomnia to narcolepsy. It is estimated that nearly one in seven Americans suffer from treatable sleep disorders of which about 50% are attributed to OSA. In Australia, these ratios are comparable.

Research points to a strong link between sleep disorders and a range of other diseases. It is thought that the lowering of blood oxygen during sleep and frequent apnoeic episodes contribute to vascular, heart and brain dysfunction.
The sleep market is broadly divided into three sectors; therapeutic equipment, diagnostics equipment and sleep tests. Compumedics is a global leader in the design and manufacturing of diagnostic devices and equipment for conducting sleep tests.
The company’s core sleep diagnostics technology is now being leveraged into the associated fields of neuro diagnostics and brain research. Combined, these markets have annual sales of more than AUD $1.2 billion.
In 2002, Compumedics acquired US based Neuroscan, the world’s leading developer of brain research instruments. This acquisition boosted its presence in the neuro diagnostics market, where the company supplies EEG and EMG devices to study electrical activity in the brain, spinal cord, nerves and muscles for the diagnosis and monitoring of neurological based diseases.
In 2004, Compumedics acquired German based DWL, which has enabled Compumedics to expand its global operations into neuro and cardio diagnostics and equipment for brain research.

Today Compumedics is a global medical diagnostic company with world leadership in three of the most exciting high-growth sectors including their core and pioneering Sleep diagnostics (Sleep Division), Neuro-diagnostics incorporating the rapidly expanding Brain Function measurement (Neuroscan and Neuroscience Divisions), and non-invasive blood-flow diagnostics (DWL Division).
Since 1999-2000, the company has increased its sales from $9 million to $34 million reflecting its product development initiatives combined with its own strong distribution network in the United States, which accounts for 55% of sales.

Issued by: Northwood Communications

On behalf of: Compumedics Limited

Further Inquiries:

David Burton
Chief Executive Officer
Ph: + 61 3 8420 7300
Mobile 0414 384 684

Rod North
Northwood Communications
Mobile: 0408 670 706