A Unique, Patented Convertible Ultrasound™ Platform.

ZONARE MEDICAL SYSTEMS INTRODUCES NEXT GENERATION ZONE SONOGRAPHY™ ULTRASOUND PLATFORM AT RSNA

Chicago – November 29, 2004 - ZONARE Medical Systems, Inc, a medical device company developing a next-generation ultrasound platform, today introduced the company's first Zone Sonography™ platform at the Radiology Society of North America (RSNA) annual conference being held November 28 - December 2, 2004. Combining a significant advance in ultrasound technology with an innovative physical design to achieve maximum customer value, the flexibility of the z.one platform is designed to provide clinical solutions for a wide variety of imaging needs in general imaging, obstetrics, gynecology, vascular and other emerging ultrasound applications.

"We have developed a next generation ultrasound platform based primarily on software technology which provides the clinician far greater flexibility than traditional ultrasound systems," said Donald Southard, president and CEO of ZONARE Medical Systems. "This architecture, coupled with our proprietary Zone Sonography technology, has allowed us to bring the first Convertible Ultrasound™ platform to the industry with high performance image quality at a significant price to value ratio."

The software architecture of the z.one platform allows rapid upgrades at a far more economical price. Other advantages of Zone Sonography include a fundamentally new approach to data acquisition and image formation. The system acquires data quickly in relatively few large zones rather than many narrow lines, allowing more rapid image storage, processing and display. In conventional ultrasound systems, each line is formed by summing together the contributions of all the channels in the transducer. As soon as each line is formed, the original channel data are discarded. The z.one system aggregates the original channel data and stores this information in Channel Domain™ Memory. All of the echo information is then utilized in Channel Domain™ Processing to form the image and to provide greater options for image post processing by retaining all of the original raw data.

In addition, Zone Sonography makes it possible to produce the first Convertible Ultrasound™ system. This allows the clinician to convert the z.one platform from a full-featured cart system into a compact, portable system quickly with all the quality and performance of substantially larger and more expensive ultrasound units, yet, with significantly higher performance than previous compact systems. Unlike other compact systems, the cart has a full user interface that works like a conventional ultrasound system.

"I believe the architecture behind Zone Sonography will add tremendous flexibility and value to the clinical environment," said Edward Lyons, M.D., professor of radiology, OB/GYN and anatomy, University of Manitoba Health Services Center. "It provides the same image quality and functionality as the traditional 400-pound ultrasound cart system while remaining completely portable. This is a tremendous advantage for a wide variety of imaging departments."

Initially, the system will provide clinical solutions for the general imaging, vascular, and OB/GYN markets with subsequent upgrades for other applications such as cardiology. Commercial availability of the z.one platform is expected in early 2005.

"Both traditional and non-traditional radiology environments will be able to benefit from the z.one system," said Southard. "With the performance of a premium system and the ability to convert from a full-featured cart to a portable compact unit, we believe the z.one platform will become an invaluable asset in a variety of clinical settings around the world."

About ZONARE Medical Systems

ZONARE Medical Systems, Inc. designs, develops, and manufactures high performance ultrasound solutions, which combine revolutionary technology with an innovative physical design. Zone Sonography technology, ZONARE's unique patented approach to ultrasound imaging, is focused on bringing premium performance to all clinical settings, leading to enhanced diagnostic capabilities, more cost effective operation and increased value to providers. For more information, please visit our web site at www.zonare.com.

Media/Investor Contact:

Lars Shaw
Vice President of Marketing
ZONARE Medical Systems, Inc.
650.230.2787
lshaw@zonare.com