Mr. Etienne Grima reports

CARDIOCOMM SOLUTIONS CONTINUES TO EXPAND INTO M-HEALTH MARKETS WITH NEW ECG MONITORING LICENSE AND CO-MARKETING AGREEMENT

Cardiocomm Solutions Inc. has signed an ECG (electrocardiogram) service licence and co-marketing agreement for devices manufactured by China-based, Borsam Biomedical Instruments Co. Ltd., a medical-grade ECG OEM (original equipment manufacturer).

The announcement was made following completion of product compatibility testing of two Bluetooth hand-held ECG devices and Cardiocomm Solutions' Gems and GlobalCardio ECG management software platforms. Connectivity to iOS and Android smart phones will be managed by a downloadable app designed by Cardiocomm Solutions and based on the company's U.S. FDA-cleared (Food and Drug Administration) and Health Canada-approved Gems software. ECGs will be transmitted to smart phones through the Gems app for real-time/continuous monitoring. ECGs can be saved and then transferred to the company's cloud-based Smart Monitoring ECG reading service when convenient or required. Once uploaded, ECGs can be reviewed and reported by physicians and feedback provided based on the ECG review findings.

Execution of this agreement will allow both companies to co-market and distribute the hand-held ECG devices through their respective distribution networks in overseas markets. Importantly, the Smart Monitoring licensing component of the agreement will see Borsam actively promote access and use of Cardiocomm Solutions' ECG reading service as a device feature enhancement.

As a result of this agreement, Cardiocomm Solutions stands to realize new revenue streams from two sources. Devices currently manufactured by and sold through existing Borsam-brokered North American and overseas sales channels will be charged a one-time Gems smart phone app download fee. Once devices are connected to the Smart Monitoring ECG reading service, additional and recurrent revenue will be generated through use of the service. Borsam will stand to see higher device sales as a result of its integration with a credible ECG management solution that will provide applications for hospital, mobile health and wellness market use. Borsam will also be provided a portion of the Gems app download fee and recurrent ECG reading net revenues for its Smart Monitoring co-marketing efforts.

Borsam has confirmed that its branded ECG devices are being marketed in China, Italy, Greece, Spain, Turkey, Kuwait, Thailand and India. North American market sales are carried out through private label OEM agreements.

In addition to integration with the WeCardio ECG card and the ECG Check smart phone case device brands, Cardiocomm Solutions is working with Borsam to develop a second agreement where the parties will co-operate further to identify which of several new ECG devices may be brought forward to hold the HeartCheck brand for North American sales. Device selection will be based on market advantages, which will include design, ease of use and end-user pricing. Cardiocomm Solutions will manage FDA and Health Canada regulatory Class II medical device applications for the selected devices. In return, Cardiocomm Solutions will hold exclusive North America sales and marketing rights for the new devices under the HeartCheck brand.

Through completion of such agreements with CardioComm Solutions, global ECG device manufacturers can offer their distributors and customers, access to a complete end-to-end and credible ECG management solution. This will help users of these new ECG devices to identify whether they have cardiac arrhythmia conditions that can cause stroke, sudden cardiac death, as well as indicate whether their heart rate and rhythm are normal.

The agreement is the third in a series of recent announcements outlining the company's growing position as the provider of choice for back-office ECG management software solutions for leading ECG device manufacturers. The company believes its will continue to see interest from ECG device manufacturers in using the Gems and GlobalCardio ECG management software platforms to enable the use of their innovative ECG devices, and for more opportunities to bring new HeartCheck-branded devices to market.

Cardiocomm Solutions has earned the ISO 13485 certification, is HPB (Health Protection Branch) approved, HIPAA (Health Insurance Portability and Accountability Act) compliant and holds clearances for the sale of the HeartCheck technologies from the European Union (CE Mark), Australia (Therapeutic Goods Administration), the U.S. (FDA), China (China Food and Drug Administration) and Canada (Health Canada). To learn more about the Cardiocomm Solutions products and for further updates regarding HeartCheck ECG device integrations, please see the company's websites.

We seek Safe Harbor.