SAN CARLOS, Calif.--(BW HealthWire)--Oct. 24, 2001--

Three-Year Agreement Solidifies Relationship with Nation's Leading Provider of Newborn Hearing Screens
    Natus Medical Incorporated ("Natus") (Nasdaq:BABY) today announced the signing of a three-year agreement that designates the Company as the exclusive supplier of newborn hearing testing products to Pediatrix Medical Group, Inc. ("Pediatrix") (NYSE:PDX).
    Pediatrix is the largest provider of neonatal and maternal-fetal physician services in the U.S. Its physicians staff and manage more than 185 hospital-based neonatal intensive care units (NICUs) and provide maternal fetal medicine (MFM) physician services in many of those markets. Pediatrix also is the nation's leading provider of newborn hearing screens, performing more than 150,000 hearing tests on newborns throughout the country each year.
    Gail Lim, ARNP, Vice-President, Pediatrix Newborn Hearing Screening Program, said, "To the best of our knowledge we believe that Natus' AABR(R) technology offers the highest quality of newborn hearing screening with the maximum level of efficiency. Since it is of utmost importance to screen the entire hearing pathway of each newborn, we have selected the one-step ALGO technology as the best method of choice."
    "Pediatrix Medical Group has been a Natus customer for over seven years and we are proud to extend and expand our supplier relationship as the exclusive supplier of our ALGO(R) Newborn Hearing Screening product line for Pediatrix's newborn screening program. We join Pediatrix in a commitment to newborn health through the delivery of high-quality products and services in a cost-effective manner," said Tim Johnson, President and CEO of Natus Medical.
    Natus Medical's ALGO Newborn Hearing Screeners are currently used to screen newborns for hearing loss in more than 1,800 hospitals throughout the United States. The ALGO screener's proprietary Automated Auditory Brainstem Response (AABR(TM)) technology screens the newborn's entire hearing pathway -- from the outer ear to the brainstem. The ALGO device screens accurately and cost-effectively within hours of birth, helping hospitals meet the recommendations of the American Academy of Pediatrics.

    Pediatrix was founded in 1979. Its neonatal physicians provide services at more than 185 NICUs and through Obstetrix its perinatal physicians provide services in 16 markets where Pediatrix's neonatal physicians practice. Combined, Pediatrix and its affiliated professional corporations employ more than 575 physicians in 27 states and Puerto Rico. Additional information is available on the Internet: www.pediatrix.com.
    Natus Medical develops, manufactures and markets proprietary, non-invasive, easy-to-use, crib-side screening devices for the detection and/or monitoring of common disorders in babies. Natus is a market leader in sales of Newborn Hearing Screening equipment. Natus also manufactures and distributes MiniMuffs(R) Neonatal Noise Attenuators and the CO-Stat(R) End Tidal Breath Analyzer, a technology that non-invasively detects the rate of hemolysis in newborns. Natus sells and supports its products domestically through direct field sales representatives and clinical educators. Natus products are distributed by its wholly owned subsidiaries in Japan and in the U.K., and have been distributed in 20 other countries. Additional information can be found at www.natus.com.

    Except for historical information, the trends discussed in this press release are forward-looking statements. These statements relate to future events or Natus' future financial performance and involve known and unknown risks, uncertainties and other factors that may cause Natus' actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by the forward-looking statements. In some cases, you will be able to identify forward-looking statements by terminology such as "anticipates," "may," "will," "offer," "expects," "potential," "continue" or the negative of these terms or other comparable terminology. Forward-looking statements are only predictions and the actual events or results may differ materially. Natus cannot provide any assurance that its future results will meet expectations. Natus' operating results could differ materially due to a number of factors, including the continued growth of demand for newborn hearing screening equipment, continued acceptance of Natus' existing products and the successful introduction and widespread market acceptance of Natus' new products.
    For additional information and considerations regarding the risks faced by Natus, see its Registration Statement on Form S-1, as filed with the Securities and Exchange Commission, as well as periodic reports on Forms 10-Q and 10-K to be filed with the SEC. Although Natus believes that the expectations reflected in the forward-looking statements are reasonable, Natus cannot guarantee future results, levels of activity, performance or achievements. In addition, historical information should not be considered a predictor of future performance. Moreover, neither Natus nor any other person assumes responsibility for the accuracy and completeness of these forward-looking statements. Natus disclaims any obligation to update information contained in any forward-looking statement.

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    CONTACT:  Natus Medical Incorporated
               Emer O'Brien, 650/802-0400
                www.natus.com
                   or
              Investors --
              Lippert/Heilshorn & Associates
               Bruce Voss, 310/691-7100
                bvoss@lhai.com
                 www.lhai.com
                   or
              Financial Media --
              Lippert/Heilshorn & Associates
               Elissa Grabowski, 212/838-3777 
                Egrabowski@lhai.com
                 www.lhai.com

    KEYWORD: CALIFORNIA
    INDUSTRY KEYWORD: MEDICAL MEDICAL DEVICES PRODUCT 
    SOURCE: Natus Medical Incorporated