SAN JOSE, Calif. – December 11, 2001-- Frost & Sullivan announces Sleep Solutions, Inc. has been awarded the distinguished 2001 Market Engineering Entrepreneurial Company Award for the U.S. Sleep Apnea Market.

The Frost & Sullivan Market Engineering Entrepreneurial Company Award is bestowed to companies demonstrating superior entrepreneurial ability in its industry. The Award signifies Sleep Solutions' identification of a unique and revolutionary product solution with significant market potential and that their marketing strategy is sound and poised for success.

Sleep Solutions provides a diagnostic service for home testing and evaluation of Obstructive Sleep Apnea (OSA), which affects 18 million Americans. OSA is characterized by repeated narrowing or collapse of the upper airway during sleep that restricts or prevents breathing. The Sleep Solutions system is the only device cleared by the Food & Drug Administration that is specifically designed for unattended and unassisted use in the patient's home and clinically validated to in-laboratory polysomnography (PSG), the current standard in OSA diagnosis.

"OSA is a major health condition which can significantly impact one's quality of life. Historically, lack of awareness has prevented afflicted patients from seeking help for their condition. Although awareness of the disease is now growing, the lack of adequate sleep testing facilities remains a significant barrier to increasing patient testing rates. With their unique product and service model, Sleep Solutions is well positioned to fulfill the market opportunity created by high demand for sleep testing coupled with a low supply of testing facilities. By offering a product solution designed to test within the patient's home, Sleep Solutions allows patients to bypass obstacles such as waiting lists and regional lack of facilities, thereby loosening the bottleneck which has been created within the market" says Monali Patel, Frost & Sullivan industry research analyst.

According to new market information from Frost & Sullivan, The U.S. Sleep Apnea Market, in addition to product successes, Sleep Solutions has seen business success in 2000 by gaining $11 million in funding from a combination of venture, corporate and private funding, in addition to funding received in prior years. Sleep Solutions was also named by Fortune Small Business in May 2001 as one of the 65 "Next Hot Companies" for fast track start-ups.

While other devices for home testing exist on the market, the Sleep Solutions system is the only one to be closely correlated to in-laboratory PSG in terms of accuracy, as clinical tests at UCSF/Mt. Zion Sleep Disorder Center in San Francisco have shown.

Sleep Solutions' future success will not only be a result of their unique product solution, but also a function of a strong business model that focuses on clinical validation, cost-efficiency, at-home delivery and ease of use. The clinically validated solution is nearly one-fourth to one-third the cost of an average in-lab PSG study and is proven to work at-home. Using an innovative direct-to-patient residential delivery system, Sleep Solutions allows physicians to provide high quality diagnostic services to any patient, anywhere at any time. For each patient, a complete Sleep Study summary can be mailed, faxed or made immediately available online to the physician as a secure patient record, for interpretation and diagnosis.

"The market is prime for a low cost, clinically effective diagnostic test for OSA. We believe our system is the only clinically validated, high quality, cost effective and practical solution to the critical problem of diagnosing the estimated 18 million individuals in the United States that currently suffer from undiagnosed and untreated OSA," says Daniel R. Dugan, CEO of Sleep Solutions. "We are pleased that Frost & Sullivan has recognized the work that has gotten us here and believe that this continues to validate our vision and strategy."

About Sleep Solutions

Sleep Solutions Inc., of Palo Alto, Calif., provides a diagnostic service for home testing and evaluation of Sleep Disordered Breathing, which includes the diagnosis of Obstructive Sleep Apnea (OSA). Sleep Solutions provides physicians and their patients a fast, cost-effective, accurate and comfortable alternative to in-laboratory sleep studies. Utilizing proprietary technology, the company has developed a new home diagnostic system that will be delivered to our customers via an innovative service delivery model. Professionals and consumers interested in more information can call toll free at 877/753-3776 or visit the Sleep Solutions Web site at http://www.frost.com/prod/corp.nsf/www.sleepsolutions.com

About Frost & Sullivan

Frost & Sullivan, a global leader in international strategic market consulting and training, presents Market Engineering Awards to companies that demonstrate the diligence, perseverance, and dedication required to develop a successful business plan and excel in the increasingly competitive global marketplace. Frost & Sullivan rigorously analyzes specific criteria to determine Market Engineering Award recipients in a variety of regional and global market landscapes. Founded in 1961, Frost & Sullivan is headquartered in San Jose, CA with offices located worldwide: New York, San Antonio, Toronto, London, Paris, Frankfurt, Beijing, Tokyo, Singapore, Mumbai and Kuala Lumpur. For further information, visit http://awards.frost.com/.

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Contact for Frost & Sullivan:
Angela Tompkins
210.247.2496
atompkins@frost.com

Contact for Sleep Solutions:
Gitte Knudsen Pope
Director of Marketing
650/320-8090, x.24
gpope@sleep-solutions.com

Chris K. Joseph
510/339-2293
ckjoseph@mindspring.com