On April 4, 1996, Masimo Corporation and Healthdyne Technologies, Inc. (Nasdaq: HDTC) announced a licensing agreement under which Healthdyne Technologies will integrate Masimo’s proprietary technologies for certain applications. Healthdyne Technologies, a leading manufacturer of medical products for both hospital and home settings, will initially adopt Masimo Signal Extraction Technology (Masimo SET^®) as an enabling technology for its planned fetal oximetry monitoring system, as well as other specific applications.

“Healthdyne Technologies has earned its reputation by understanding its customers’ needs and engineering the best possible solutions,” comments Craig B. Reynolds, President and Chief Executive Officer of Healthdyne Technologies. “The problem of motion artifact, particularly in combination with low peripheral blood perfusion, has long plagued pulse oximetry. The performance enhancement made possible with Masimo SET is the basis for making an important commitment to this technology and should establish pulse oximetry as a viable and accurate means of monitoring even the most challenging patient.”

“Masimo is excited with the opportunity to partner with Healthdyne Technologies and jointly advance the standard of care for oximetry monitoring,” commented Joe E. Kiani, President and Chief Executive Officer of Masimo Corporation. “Healthdyne Technologies’ market leading position is an ideal match with Masimo’s mission of ‘taking oximetry monitoring to new sites and applications.’ We couldn’t be more pleased to welcome Healthdyne Technologies as a long term partner and look forward to the exciting potential represented by combining Masimo SET with Healthdyne Technologies’ fetal oximetry system.”

Healthdyne Technologies designs, manufactures and markets technologically advanced medical devices primarily for use in the home, as well as other specialized clinical settings. The Company’s products include diagnostic and therapeutic devices for the evaluation and treatment of sleep disorders, noninvasive ventilators, oxygen concentrators and medication nebulizers for the treatment of respiratory disorders, monitors for infants at risk for SIDS, and products for asthma management.