NeuroWave Receives Funding for the Development of a Portable Closed-Loop Anesthesia System (AutoTIVA™)

CLEVELAND HEIGHTS, Ohio (June, 2012) - NeuroWave Systems Inc. announced today that it has been awarded a Phase II SBIR contract for nearly $1 million from the US Army Medical Research and Materiel Command (USAMRMC). The funds will be used for the continued development of the AutoTIVA™, a portable closed-loop anesthesia system based on its NeuroSENSE® brain monitor. This concept is covered under the US Patent 7,603,168.

The AutoTIVA system is capable of automatically controlling the administration and infusion rate of intravenous anesthetic and analgesic drugs to patients undergoing surgery or sedation based solely on their brain activity. The system acts as an "autopilot" for anesthesia, thereby allowing anesthesiologists to concentrate on higher-level tasks, while leaving the minutiae of maintaining the patient at a proper anesthesia level to the AutoTIVA device.

The control of both sedative and analgesic agents is achieved based on quantitative brain activity measures provided continuously and in real-time by NeuroWave's NeuroSENSE system, the latest generation brain-function monitor. The concept of NeuroSENSE-based automated anesthesia delivery has already been successfully clinically tested in over 30 adults by a team of researchers from Foch hospital, Suresnes, France as well as in over 80 children at BC's Children Hospital, Vancouver, British Columbia, Canada. Both studies used a state-of-the-art control algorithm designed by Professor Guy A. Dumont from the University of British Columbia (Vancouver, Canada), a world expert in Control Systems.

During the very successful Phase I program, NeuroWave has developed a fully functional AutoTIVA prototype by integrating the EEG acquisition and processing unit, the user interface module and the drug pumps control module for automated dual TIVA administration into a small and compact package. It has further developed a Patient Simulator capable of real-time EEG generation, which emulates how a patient reacts to drug administration, and utilized it to evaluate the performance of the AutoTIVA system and to demonstrate its feasibility. NeuroWave has also put together a clinical advisory board comprising of prominent US and Army anesthesiologists and critical care physicians, who will help guide the overall design and development of the proposed system during the Army program.

"Our portable AutoTIVA system will be an important factor for improved safety and outcome for Army anesthesiologists, in particular when dealing with mass casualty situations or patients with heavy blood loss. After securing an intravenous access, the anesthesiologist simply needs to engage the AutoTIVA autopilot to drive and maintain the patient in a targeted anesthetic depth." said Dr. Stéphane Bibian, NeuroWave's VP, Engineering and Clinical Research. "This Phase II Army contract allows NeuroWave to continue to develop the first closed-loop anesthesia system compliant with strict standards for medical devices, based on very promising results we achieved during the Phase I contract. We are particularly proud to be working on bringing the benefits of closed-loop anesthesia to our servicemen and women." said Tatjana Zikov, the President of NeuroWave.

About NeuroWave:
NeuroWave Systems Inc.'s mission is to develop, manufacture, and market monitoring products using advanced signal processing of brain waves (electroencephalogram - EEG) and other biosignals for Neurology, Anesthesia, Intensive Care Unit, Emergency Medicine and Psychiatry applications, in order to improve patient outcome and quality of life.

For further information regarding NeuroWave Systems Inc., visit the Company's website at www.neurowavesystems.com.

NeuroSENSE is a registered trademark of NeuroWave Systems Inc., Cleveland Heights, Ohio.