Sleep Solutions, Inc. Secures $20.5 Million Of Equity Financing



    Sleep Solutions, Inc. (SSI), the market leader delivering
    innovative medical technologies for the sleep disorder market, today
    announced it has secured $20.5 million in additional venture funding.

    The investment was led by the TPG Biotechnology II fund with
    participation from existing investors, including MedVenture
    Associates, Dr. Thomas Fogarty/Emergent Ventures, and Lava Ventures.

    D. Keith Grossman, Managing Director of TPG Biotech, stated, "We
    are excited about the prospects for SSI. OSA is one of the most
    serious and under-diagnosed medical problems in our country, and the
    current approach of overnight sleep center studies is both costly and
    limited in its capacity to serve large numbers of patients. The
    company´s proprietary OSA detection technology and unique home service
    delivery model, combined with existing strong support from private
    insurers and now Medicare, uniquely position SSI for an aggressive
    nationwide launch over the coming months and years."

    With only 15-20% of the estimated 40 million OSA patients in the
    US identified or diagnosed, the OSA diagnostic testing market is
    projected to exceed $3 billion in 2008 and is expected to grow 20-30%
    annually for the next five years. In December, the Centers for
    Medicare and Medicaid Services (CMS) issued a draft National Coverage
    Decision approving reimbursement for in-home diagnostic testing
    services for OSA patients. The final policy is to be posted in
    mid-March.

    "The new investment and continued support of existing financial
    partners is a compelling endorsement of SSI and its demonstrated
    ability to deliver innovative solutions to sleep apnea patients,"
    stated Michael J. Thomas, President and CEO of SSI. "The TPG
    investment represents an inflection point for Sleep Solutions,
    enabling SSI to remain at the vanguard for developing new approaches
    to delivering superior patient outcomes while expanding the breadth of
    our high-quality healthcare solutions outside the traditional settings
    of hospitals or sleep labs."

    The additional investment will be used to build a national sales
    and marketing capability, expand facilities, and continue driving the
    company´s development of innovative applications for its proprietary
    NovaSom(R) QSG(R) diagnostic medical device and MediTrack(R) Patient
    Management System.

    Sleep Solutions also announced that Mr. Grossman and Ned Brown,
    also a Managing Director of TPG Biotech, have joined the company´s
    board of directors. Mr. Grossman will serve as Chairman. "Keith and
    Ned have more than 40 years of combined experience in the medical
    device business, identifying and developing new markets for products,
    building strong organizations and creating substantial shareholder
    value. We are excited to add their industry leadership and vision to
    our board," said Thomas.

    About Obstructive Sleep Apnea (OSA)

    Obstructive Sleep Apnea is a chronic breathing disorder
    characterized by interruptions of breathing during sleep. The
    condition occurs when air cannot flow into or out of the person´s nose
    or mouth due to collapse and blockage of the airways, usually
    accompanied by loud snoring. Over 40 million Americans, and 5% of the
    worldwide population, suffer from obstructive sleep apnea, yet, 80 to
    90 percent of these cases remain undiagnosed and untreated, resulting
    in more extensive and more expensive medical care. Sleep Apnea has
    been linked to hypertension, coronary artery disease, diabetes,
    erectile dysfunction, depression, epilepsy, obesity, cardiovascular
    disease, stroke and congestive heart failure, as well as other
    conditions such as fatigue, irritability, and overall reduced quality
    of life.

    About Sleep Solutions, Inc.

    Sleep Solutions is a medical device manufacturer providing
    technology enhanced services for direct-to-patient diagnosis, therapy
    and compliance management of sleep-disordered breathing, including
    Obstructive Sleep Apnea (OSA). The privately held company provides
    physicians and their patients a clinically validated, cost-effective,
    accurate and comfortable alternative to in-laboratory sleep studies at
    a significantly reduced cost. Please visit www.SleepSolutions.com

    About TPG Biotechnology

    TPG Biotech is part of the venture capital investment platform of
    TPG, the global private investment firm. With more than $500 million
    under management, TPG Biotech targets investments in life science,
    biotechnology, renewables and medical technology companies. The firm
    is backed by the resources of TPG with more than $35 billion of assets
    under management. Please visit www.TPG.com.