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Press Release

American TeleCare®, Inc. Announces UTMB’s Successful Use of New IP Protocol for CareTone® Ultra Telephonic Stethoscope

EDEN PRAIRIE, MINN. (September 25, 2002) – American TeleCare®, Inc. (ATI) announced today the successful development and market introduction of a software program for transporting CareTone® Ultra Digital Tele-Stethoscope signal over IP (internet protocol) networks. The development was facilitated by invaluable feedback and testing from the University of Texas Medical Branch at Galveston (UTMB), one of the largest users of the industry-leading CareTone Ultra.

American TeleCare developed IP connectivity in response to the increasing use of IP networking in videoconferencing technologies. The IP software allows the CareTone Ultra to run independently yet alongside video or data streams. The CareTone Ultra, which transmits high quality heart and lung sounds, is recognized as the premium tele-stethoscope, and is used widely in institutional telemedicine programs throughout the world, as well as in American TeleCare’s home telehealth system.

UTMB has the most extensive telemedicine network in the country, currently conducting over 500 remote consultations weekly. They utilize 75 CareTone Ultras within the corrections component to their telemedicine services. The corrections program provides offenders in the state’s penal system with access to healthcare services. Telemedicine allowed for timely patient evaluations and interventions, which has resulted in a $650 million cost savings over a six year period.

Says Dr. Glenn Hammack, Director of Health Informatics and Telemedicine for UTMB Correctional Managed Care, “The CareTone Ultra tele-stethoscope is an integral part of our Digital Medical Services telemedicine system. It provides the high quality real-time heart and lung sounds we require for primary care and cardiology services, better than other tele-stethoscopes we evaluated. We have been very pleased with American TeleCare’s responsiveness to our need for an IP protocol for the stethoscope, and we were pleased to provide the requirements for the development of this new technology.”

“Our commitment to responding to evolving telecommunications developments and to our customers’ needs is evidenced in the development of CareTone Ultra IP,” comments C.R. Abbruscato, chief technology officer for American TeleCare, and inventor of the CareTone tele-stethoscopes.

“American TeleCare is committed to maintaining the integrity of the interface between the patient and provider,” says Randall Moore, MD, MBA, chief executive officer for American TeleCare, “The tele-stethescope enables the clinician to perform many parts of the physical examination that would otherwise require the patient and clinician to be present in the same physical location.”

American TeleCare, Inc., is a telehealth solutions company. The CareTone Ultra line of tele- stethoscopes started in 1995, and includes an analog model and a low bandwidth digital model plus the software for the IP transport. Widely recognized as the industry gold standard, the CareTone Ultras are widely used in institutional telemedicine programs both nationally and abroad. They also comprise an important component of American TeleCare’s home telehealth system. The company currently markets the CareTone Ultras and the AVIVA® System, an FDA-cleared telemedicine monitoring system that incorporates live audio/video with integrated electronic medical peripherals to allow a doctor or nurse to conduct remote assessments of patients in their homes. The products are simple to use, and operate through a standard telephone line. For more information, visit www.americantelecare.com or call 1-800-323-6667.