A Unique, Patented Convertible Ultrasound™ Platform.

ZONARE MEDICAL SYSTEM RELEASES FIRST MAJOR UPGRADE FOR Z.ONE ULTRASOUND SYSTEM

First Customer Downloads New Release of Imaging, Networking and Calculations Features via Internet

Mountain View, Calif., August 18, 2005 – ZONARE Medical Systems, Inc., a developer of next-generation ultrasound technology, announced it has released the company’s first major upgrade for its z.one ultrasound system. The new release comes less than four months after the z.one system started commercial shipment and features advancements in 2D imaging, color and power Doppler performance, Dual Screen imaging and significant additions to network connectivity. One of the first commercial upgrades was downloaded via the internet to a z.one ultrasound system at Mercy Hospital in Chicago.

“The flexibility of the z.one system’s Convertible Ultrasound™ capability to bring premium compact ultrasound to the patient’s bedside has added great value to our ultrasound imaging capabilities,” said Peter Jabeck, administrative director, Diagnostic Imaging for Mercy Hospital. “ZONARE’s first upgrade is providing clinically significant new imaging, calculations and networking that further advance our z.one system’s performance. Plus, the ability to download this and future upgrades over the Internet will be a tremendous time saver for us.”

The z.one system is based on revolutionary Zone Sonography™ technology. This new architecture has allowed ZONARE Medical Systems to bring the first Convertible Ultrasound platform to the industry with superb image quality. 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.

Combining a fundamentally new advance in ultrasound, Zone Sonography technology coupled with the z.one platform’s radically new physical design offers significant clinical and workflow solutions for a wide variety of customer challenges. The z.one platform’s Zone Sonography software-based architecture ensures 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 and investment protection. With ZONARE’s latest release, upgrades can now be downloaded via the internet, an industry first.

“The z.one system we recently purchased has the latest software version which has imaging and operational enhancements,” said Jonathan Edwards, clinical manager for the Cleveland Clinic Vascular Surgery Vascular Lab in Ohio, “This first generation product will serve as a useful tool for physicians.”

ZONARE began commercial shipments or the z.one system in the first quarter of 2005. Numerous radiology, vascular, interventional, emergency, and other medical imaging facilities have installed the system to date.

“We believe ZONARE’s singular focus on ultrasound and introduction of Zone Sonography technology will result in a rapid succession of clinical ultrasound advancements,” said Donald Southard, president and CEO of ZONARE. “Releasing this significant upgrade in such a short time after our first commercial shipments is testimony to the power of the z.one platform’s highly upgradeable architecture. We are dedicated to bringing innovation back to ultrasound combining significant clinical and workflow solutions with outstanding economic value, protecting our customers’ investment today and in the future.”

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 Contact:

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