DRAEGER MEDICAL AND COMPUMEDICS SIGN DISTRIBUTION DEAL

May 7, 2003

Compumedics and Draeger Medical AG & Co. KGaA, Luebeck, Germany, signed an agreement for the exclusive distribution of Compumedics’ sleep monitoring and diagnostic products. Effective immediately, Draeger Medical will market and distribute Compumedics’ products throughout Germany, France, Belgium, the Netherlands, Luxemburg, United Kingdom, Ireland, Austria and Switzerland. The agreement also provides for an extension into other territories as well as the co-operative development of new products.

Luebeck / Melbourne, May 7, 2003 – Compumedics Ltd (CMP), based in Melbourne, Australia, and Draeger Medical AG & Co. KGaA, Luebeck, Germany, have signed an agreement for the exclusive distribution of Compumedics’ sleep monitoring and diagnostic products. Effective immediately, Draeger Medical will market and distribute Compumedics’ products throughout Germany, France, Belgium, the Netherlands, Luxemburg, United Kingdom, Ireland, Austria and Switzerland. The agreement also provides for an extension into other territories as well as the co-operative development of new products.
Through this agreement, Draeger Medical’s Pre & Post Hospital Care Business Unit completes its product portfolio of sleep therapy equipment with diagnostic products and can now offer clinics, sleep laboratories and patients solutions tailored to their needs from one supplier.

Draeger Medical regards Compumedics’ flagship portable diagnostic product, Somté, as being ideally suited for its push into the home health care market. Market penetration of other Compumedics products, such as Siesta and E-series systems, is also expected to accelerate under Draeger Medical’s stewardship.
“This relationship is important for both Compumedics and Draeger Medical as we team up to provide a range of high quality and high technology sleep products for the European market,” David Burton, Compumedics’ Executive Chairman said.
For Draeger Medical, this will also mean a substantial growth in the home care market. “Based on this agreement we can offer our customers ideal system solutions. We combine the best diagnostic and therapy products in sleep therapy and make the next step towards a constant integrated and comprehensive solution for the treatment of sleep disorders,” states Dr. Thijs Teeling, General Manager of Dräger Medical’s Pre-and Post-Hospital Care Business Unit.
The agreement is expected to generate sales of over AUD10 million (approximately 5.6 Million Euro) over the first three years. The deal is the biggest in Compumedics’ history and signifies the company’s continued focus on the European market – currently the second largest sleep market in the world and growing at over 10% per annum.

Contact:

Compumedics
Executive Chairman, CEO
David Burton
Phone: +61 3 8420 7300
Fax: +61 3 8420 7399
dburton@compumedics.com.au

Dräger Medical AG & Co. KGaA
Birgit Diekmann, Public Relations
Phone (+49 451) 8 82- 1215
birgit.diekmann@draeger.com

Drägerwerk AG
Dr. Welf Böttcher, Corporate Communications and Investor Relations
Phone (+49 451) 8 82- 2201
welf.boettcher@draeger.com

Compumedics Limited, founded in 1987, is a global leader in the design and manufacturing of diagnostic technology for sleep disorders, neurophysiology and cardiology. Compumedics was listed on the Australian Stock Exchange in December 2000. With corporate headquarters in Melbourne, Australia and offices in the United States, Asia, and Europe, Compumedics holds 70% of the Australian sleep diagnostic market and is fast becoming a major presence in the US and other international marketplaces for both its sleep diagnostic and its neuro-diagnostic products. In early 2003 Somté, Compumedics’ leading portable sleep monitor was approved for sale by the US FDA. The potential market for Somté in the United States is estimated to be around US$130 million per annum.
Draeger Medical is one of the world’s leading manufacturers of medical equipment. As the largest division of Draegerwerk AG, Draeger Medical offers integrated systems and services throughout the entire patient care process in acute care and in the home care sector. The company employs around 4,900 people worldwide and is represented in over 140 countries. Based on preliminary figures for fiscal year 2002, the Company increased its net sales by around 5 percent to reach 848 million Euro (2001: 805,4) and nearly doubled its EBIT reaching 75 million Euro in 2002 (2001: 39,0 Mio Euro). Draeger Medical continues to grow faster than the market with a growth rate of around 9 percent per annum. The Company increased its EBIT from 9,1 Mio Euro in 2000 to 75 Mio Euro in 2002, marking the first two years of its turn-around business. Draeger Medical provides innovative solutions which are the result of a close dialog with customers, years of experience in the market, and continuous investment in R&D. The company’s goal is to improve the quality of patient care while supporting cost-reduction in the health care sector. Additional information about Draeger Medical can be found on the Company’s Website at www.draeger-medical.com.