A Unique, Patented Convertible Ultrasound™ Platform.

ZONARE DELIVERS NEW ADVANCED HARDWARE AND SOFTWARE BASED ON REVOLUTIONARY ZONE SONOGRAPHY TECHNOLOGY

New Transducers and Upgrades Significantly Expand Applications for World’s First Convertible Ultrasound System

Mountain View, Calif. – November 27, 2006 – ZONARE Medical Systems, a developer of next-generation ultrasound technology, announced the company is showcasing new advanced hardware and software upgrades on its z.one ultrasound system at the Radiology Society of North America’s annual conference which is being held November 25 – December 1, 2006. Based on revolutionary Zone Sonography technology, the upgrades include new transducers, image storage capabilities and image quality improvements. In addition, upgrades addressing complete auto-optimization of 2D imaging, automatic spectral Doppler tracing, wireless-ready connections and a HDMI/DVI digital interface is being presented. Finally, a new miniCart option for the z.one’s scan engine, where space and economics are an issue, is being highlighted.

"The array of advanced hardware and software upgrades for the z.one system has experienced significant growth over the past year," said Lars Shaw, vice president of marketing for ZONARE. "For example, our family of transducers hasl grown to eight with many more to come. Plus, advances within the architecture of our revolutionary Zone Sonography technology, such as our ground-breaking Auto-Opt with ZST which optimizes the 2D image and Auto-Dop Trace for spectral Doppler tracing, should become invaluable assets in our customer’s growing arsenal of diagnostic tools."

First introduced at RSNA 2004, Zone Sonography technology has allowed ZONARE Medical Systems to bring the first Convertible Ultrasound platform to the industry with superb image quality at a substantial price to value ratio. Clinicians are able to instantly convert the z.one platform from a full-featured, cart-based system into a premium compact, ultrasound system with all the performance of substantially larger and more expensive ultrasound units, yet, with greater portability and clinical flexibility than conventional compact systems.

The z.one platform’s Zone Sonography software-based architecture ensures that its performance will increase as improvements in processing power become available. This allows for fast, convenient upgrades in clinical capabilities, keeping clinicians at the forefront of diagnostic capabilities as well as protecting their investment. Software upgrades can be downloaded via the internet, another industry first.

"We recognized the value proposition of the z.one system’s Convertible Ultrasound capability from the early stages," said Peter Jabeck, administrative director, Mercy Hospital and Medical Center, the first facility to install the z.one system in the U.S. "Not only is the image quality excellent, but we can easily upgrade the system primarily using downloads through the internet. The flexibility of the system, along with excellent sales and service support, made it an easy decision to acquire additional systems to meet our growing needs."

ZONARE began shipments of the z.one system last year and announced the installation of the one-hundredth system in December. Installations are now at approximately 500 systems worldwide and the sales force has more than doubled since the first U.S. commercial installation in spring of 2005. During this time, new upgrades in hardware and software have been introduced, helping to accelerate ZONARE’s rapid growth.

"It’s very understandable why ZONARE is the fastest growing ultrasound company in the market today," said Michael Racenstein, MD, attending radiologist for Rush North Shore and past president of the Chicago Radiology Society. "This revolutionary technology provides an incredible price to value ratio. We are extremely impressed with the z.one system due to its convertibility from a full-cart to a compact, portable system without image compromise. In fact, we traded in a one-year old system from another manufacturer because the z.one fulfilled our needs far better."

Advances in Auto-Optimization

Auto-Opt with ZST

ZONARE’s breakthrough Auto-Opt with ZST option instantly equalizes tissue gain and brightness in real time with the touch of a button – for every acoustic window. Most uniquely, this upgrade provides the ability for the operator to automatically adjust for each individual’s unique body sound propagation and fully optimize the ultrasound image – something never before achieved.

The Auto-Opt with ZST option provides significant benefits including directing the clinicians focus on clinical issues – not system controls, reduced hand motion, shortened exam time while accelerating workflow and optimized images regardless of experience level. Additionally, the user can achieve consistent real time image optimization on every patient for every view, in every clinical application – using any ZONARE transducer.

ZST - Optimized Sound Speed Compensation

Not all bodies image the same with ultrasound. Wall thickness, fat layer and tissue attenuation affect the way ultrasound sound waves travel through an individual’s body. Conventional ultrasound systems, however, assume the same pre-set sound speed to image all body types. Now, as an industry first, ZONARE is offering the ability to automatically adjust the sound speed based on differences in a patient’s body habitus which, in turn, immediately optimizes the clinical image.

Auto-Dop Trace

Auto-Doppler Trace automatically traces the spectral Doppler waveform at the touch of a button. The Auto-Dop Trace information is unique in the industry because it is derived from the original Doppler data and is independent of any spectral Doppler post-processing parameters, such as gain and dynamic range. This means the user can actually have an accurate Doppler tracing on a waveform that is not optimized. In addition, the user can configure this feature to display various calculations that are updated by either heartbeats or time. The derived calculation data can then be easily entered into the z.one system’s calc packages, saving the user time.

Advanced Transducer Technology

ZONARE’s new transducer technology greatly expands imaging capabilities and applications, whether used with the z.one’s full-featured, cart-based configuration or the premium, portable compact unit. Included in the newest of ZONARE’s family of transducers are the P4-1c and L12-5sp.

P4-1c Phased Array

The P4-1c is designed to address transcranial, abdominal vascular and basic cardiac imaging*. It has a small footprint, (14 X 21mm), ideal for acoustic access to these types of exams. In addition, the P4-1c has a combination of nine multiple frequencies within 2D and M-Mode, Tissue Harmonics, Color / Power Doppler, and PW Doppler. The user can easily choose the optimal frequency for their patient while scanning, and can penetrate up to 30 cm.

*works in progress

L12-5sp Linear Array

Dedicated to specialty purpose, the L12-5sp linear array transducer provides a narrow footprint with high frequency imaging, coupled to a small ergonomic handle. With eight multiple frequencies, the L12-5sp design is ideal for intra-operative vessel scanning, guiding needles/catheters, musculoskeletal applications and superficial vein mapping.

Other Recently Introduced Transducers

In addition to the P4-1c and L12-5sp transducers, ZONARE recently began shipments of the L-8-3 linear array transducer, especially designed to address peripheral vascular needs, but can also be used for pediatric hips and technically difficult small parts. With the P10-4 phased array transducer, ZONARE paid specific attention to the transducer’s ergonomic design, resulting in a comfortable grip for imaging neonatal, infant and pediatric patients. The P4-1 phased array transducer, with a small footprint, for easy access in abdominal and OB/Gyn sonography

Previously introduced ZONARE transducers include the C5-2 Curved Array which is excellent for abdominal, abdominal vascular, obstetrics, fetal heart and gynecologic imaging. It also provides excellent imaging for needle guided procedures and technically difficult peripheral vascular anatomy. The E9-4 endovaginal and L10-5 linear array are designed with a special focus on small parts such as thyroid, breast, scrotum, and peripheral vascular.

Advanced miniCart Option

When space or economics is an issue, the advanced miniCart provides an excellent solution. Whether in a crowded private office or interventional radiology suite, the new ultrasound miniCart offers not only convenience but functionality as well. It is a customized, ergonomic mobile platform that holds and secures the z.one system’s scan engine when space is tight and a cart is needed. However, it easily allows the scan engine to convert back to a premium compact system with a simple one-hand operation when the need to go portable arises.

The miniCart, with a full-size QWERTY keyboard, for easy annotation and patient data entry, and flat panel monitor, expands from 41 inches at its lowest configuration (monitor down) to 61 inches at its highest (monitor up). The mini Cart has a low profile footprint that can be pushed from the front or the back of the cart. Features include a security lock for the scan engine, independent four-wheel movement and a multifunction connector, or QuikConnect, enabling digital video and USB capabilities for connecting optional items like external printers and monitors or an Ethernet.

The miniCart integrates with the scan engine to provide a unique touch screen interface. The FastKey Menu on the scan engine offers a sophisticated set of "soft key" self-programmable menus which enable clinicians to quickly breeze through exams in a fraction of the time compared to conventional compact systems. Workflow efficiencies are quickly gained by accessing specific applications, such as OB/GYN, at just the touch of a soft button on the screen. Immediately, the menu reflects the application you have chosen.

Advanced Image Storage, Management and Quality

Several new image storage, management and quality upgrades will also be introduced at RSNA. An internal hard drive will be included with the z.one system which will provide storage capabilities directly within the scan engine itself which is now wireless ready. Additionally, there will be a USB for external storage as well. The industry’s only HDMI/DVI port will provide the most up-to-date, high quality digital video benefits.

Finally, the new advanced hardware and software upgrade takes full advantage of Moore’s Law, harnessing the power of exponentially increased processing power. This translates to improved image quality and greater retrospective processing tools on the completely stored data set provided by Zone Sonography technology. The data set, Channel Domain Memory, includes all of the raw data from the ultrasound signal allowing the clinician full access to accurate post processing. No other ultrasound technology provides this capability.

About ZONARE Medical Systems

ZONARE Medical Systems, Inc. designs, develops, and manufactures premium compact 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 the highest performance to all clinical settings, leading to advanced diagnostic capabilities, more cost effective operation and increased value to providers. For more information, please visit our web site at www.zonare.com.

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Media Contacts:

Lars Shaw
ZONARE Medical Systems
lshaw@zonare.com
650-230-2787

Laurie Hallwyler
ZONARE Medical Systems
lhallwyler@zonare.com
650-248-9081