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Amy Rickard
Cleveland Medical Devices Inc.
Phone: 216.791.6720
arickard@clevemed.com
www.CleveMed.com


FOR IMMEDIATE RELEASE


CLEVEMED RECEIVES $880,000 TO DEVELOP AN IMPROVED DEVICE FOR SLEEP APNEA TREATMENT


CLEVELAND, OHIO, October 9, 2006 - CLEVELAND, OHIO, November 1, 2006 - Cleveland Medical Devices Inc. (CleveMed) announced that it has been awarded $880,000 in NIH SBIR Phase II funding. The proceeds from the grant will continue the development of an improved device for the treatment of sleep apnea called Intelligent Quantitative CPAP (IQ-CPAP).

Patients with sleep apnea suffer from interrupted breathing during the night caused by repeated closures of the upper airways. The most common treatment is Continuous Positive Airway Pressure (CPAP), which treats sleep apnea by forcing air into a patient-worn mask thus keeping the airways open. Hundreds of thousands of new patients start CPAP treatment each year and the growth is expected to continue at a double digit rate for the coming years due to the large untreated population worldwide.

As patients age, change dietary habits or develop complicating diseases, their CPAP therapy must be adjusted or supplemented with another treatment modality. Despite the fact that lifelong treatment for sleep apnea is essential, CPAP follow-up and therapy management remain rudimentary. To address this need, IQ-CPAP will not only provide CPAP therapy, but it will also simultaneously monitor the patient´s cardiopulmonary response to confirm therapy effectiveness as needs change. It will feature a user-activated external module to record physiological signals such as heart activity, blood oxygen saturation, body position and respiration, and it will analyze and send the data in real-time to a doctor´s office for immediate intervention as needed.

In addition to accurate therapy evaluation from the comfort of the patient´s home, IQ-CPAP´s comprehensive patient monitoring will be used to automatically determine and adjust to the optimal therapeutic air pressure level most suited for the patient. Conventional "auto-titrating" devices lack the patient response information that is necessary to account for changes in critical disease states such as arrhythmias, chronic obstructive pulmonary disease, central sleep apnea and obstructive sleep apnea, which are all affected differently by CPAP.

"Our understanding of the prevalence of sleep apnea and its coexistence with many life-threatening diseases affecting the heart and lungs warrant us to improve our long-term management of the disease," said Dr. Foldvary-Schaefer, Director of the Cleveland Clinic Sleep Disorders Center.

According to Hani Kayyali, the company president and grant Principal Investigator, "this is a milestone award for us, as it will make CleveMed a leading innovator not only in sleep diagnosis, but in sleep therapy as well. As more and more patient care moves to the home setting, the 1 of 2 need for a new class of CPAP technology that improves patient care while maintaining simplicity and cost efficacy will only grow."

About CleveMed

CleveMed was founded with the goal of developing innovative telemetry devices for a variety of medical applications. Today, CleveMed is developing and pioneering the use of novel wireless monitoring systems for high growth neurology and rehabilitation applications, including brain monitoring, sleep disorders and movement disorders. Through these innovations, CleveMed has developed a growing range of products that address the needs of the medical, research and academic communities.
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