1. Precise, Real-Time Breathing Tube Monitoring ™ Investor Presentation Venture Forum June 2009

2. slide 2 © 2009 SonarMed Inc.SonarMed Confidential & Proprietary ™ Why You Should Listen Invest-able Team Chairman = successful experienced entrepreneur President = 20 year medical device veteran CTO = Ph.D. with relevant patent credits VP Regulatory = highly FDA experienced, former respiratory therapist Opinion leading medical advisors Clear & compelling unmet clinical need $5BB+ problem $400MM U.S. market Capital efficient $5.5MM raised, 82% non-dilutive Ready to go Two human studies completed with strong performance 510(k) regulatory path, FDA filing 3Q09 Strategic partner discussions ongoing Launch early 2010

3. slide 3 © 2009 SonarMed Inc.SonarMed Confidential & Proprietary ™ The Problem Movement Insertion error Tube gets blocked Increased morbidity & mortality Secretions Tube comes out Emergency re-insertion Tube in wrong place Wrong pipe Into the lung

4. slide 4 © 2009 SonarMed Inc.SonarMed Confidential & Proprietary ™ Significant Unmet Clinical Need 32 question, 74 clinician SonarMed survey shows: Unplanned extubation = high concern (98%) Reintubation = high risk for pneumonia (100%) Ventilator assisted pneumonia (VAP) = high concern (94%) 30% of patients “at risk” for unplanned extubation Valuable to identify location of obstruction (77%) Unplanned Extubation (UE) is the most common ICU endotracheal tube adverse event Incidence rate of ≈ 10% More than doubles ICU stay 60% increase in total hospital stay Nearly triples need for post-ICU chronic care Quintuples risk of contracting pneumonia (40% mortality rate) Is a direct cause of death in some instances UE = $5.25BB issue 1 1 1.5MM adult ICU intubations x 10% rate of UE x $35,000/incident cost of extended ICU/hospital stay

5. slide 5 © 2009 SonarMed Inc.SonarMed Confidential & Proprietary ™ The Solution MONITORS: Movement Obstructions Passageway size Reusable Monitor Single Use Adapter PROCESS: Anesthesiologist, ER doc, or EMT places tube SonarMed ™ Adapter replaces standard adapter – sits between tube and ventilator Immediate 24/7 tube monitoring TECHNOLOGY: Exclusive license Issued patents Acoustic signal Echo processing

6. slide 6 © 2009 SonarMed Inc.SonarMed Confidential & Proprietary ™ U.S. Market Opportunity Adult Hospital SegmentsIntubations/year Adult ICU 1,500,000 Select operating room applications 900,000 Emergency room 300,000 TOTAL 2,700,000 Future Market SegmentsIntubations/year Field/Ambulance* 275,000 NICU/PICU 120,000 Operating room general use15,000,000 TOTAL15,395,000 *Does not include potential military medical applications

7. slide 7 © 2009 SonarMed Inc.SonarMed Confidential & Proprietary ™ Revenue Model Pricing Single-use Adapter @ $50 (razor blade) – cannot be reprocessed Monitor @ $1000 (razor) Reimbursement Analysis completed (Medicare as model payer) Unique reimbursement not anticipated – sell on cost, quality of care Net avg. hospital savings of $1000/intubated patient is projected Distribution Initial direct sales to flagship accounts Partnership for broad penetration

8. slide 8 © 2009 SonarMed Inc.SonarMed Confidential & Proprietary ™ Adult Hospital Competition Visual spot checks for position “Teeth checks” (98% use*) Daily chest x-rays (72% use*) Routine and distress suctioning for obstructions “Inferential” technologies Pulse oximetry monitors blood oxygen levels Can be used to infer gross tube issues Used on virtually all ICU patients Capnography monitors exhaled CO 2 levels Can be used to infer gross tube issues (42% use*) *SonarMed clinician survey April 2009 No precise, real-time tube monitoring technology exists in the market today

9. slide 9 © 2009 SonarMed Inc.SonarMed Confidential & Proprietary ™ Platform Potential Future generation devices Peripheral device reporting to central monitoring station or ventilator Integrated device with capnography and/or pulse oximetry Device targeting additional market segments (neo-peds, pre- hospital, military) R&D opportunities for additional intubation parameters R&D opportunities beyond breathing tube monitoring Tracheostomy tubes Clot formation in venous lines Catheter placement

10. slide 10 © 2009 SonarMed Inc.SonarMed Confidential & Proprietary ™ Management Dave Wortman, Chairman, experienced technology executive/entrepreneur Andy Cothrel, President, 20 years in medical device development, ops, general management Jeff Mansfield, PhD, Founder and CTO, expertise in biomedical acoustics, 10 years in medical device R&D Laura Lyons, VP Clinical/Quality/Regulatory Affairs, strong background in all aspects of regulatory, quality, and FDA, prior experience as a respiratory therapist SonarMed Team Co-founders and technical advisors George Wodicka, PhD, Professor and Chair, Weldon School of Biomedical Engineering, Purdue University Eduardo Juan, PhD, Professor, Electrical Engineering, University of Puerto Rico Greg Ayers, MD, PhD, Founding member of successful start-ups: InControl, Hemosense, Intraluminal, CryoCor, Alsius Medical Advisory Board Andranik Ovassapian, MD, Professor of Anesthesia and Director of Airway Training Center, University of Chicago; Founding President, Society for Airway Management Elizabeth Behringer, MD, Anesthesiologist/Intensivist, Cedars Sinai Medical Center, and President-elect, Society for Airway Management

11. slide 11 © 2009 SonarMed Inc.SonarMed Confidential & Proprietary ™ Currently raising $2,500,000 to fund initial launch and outcomes study Spring Mill Venture Partners/Village Ventures $350,000 BioCrossroads/Indiana Seed Fund $500,000 Purdue/Founders Equity $100,000 Indiana 21st Century Fund Grant $1,450,000 NIH (SBIR) Grant $3,100,000 Total financing to date $5,500,000 Financing

12. slide 12 © 2009 SonarMed Inc.SonarMed Confidential & Proprietary ™ Why Invest in SonarMed? Clear & compelling unmet clinical need Intubation-related adverse events create > $5BB in medical problems Over 15MM intubations/year in the U.S., $400MM market Confirmed with in-depth clinician survey and extensive body of publications Capital efficient $5.5MM raised, 82% non-dilutive ($3.1MM in NIH SBIR grants) Low technology/regulatory risk Exclusive license to issued patents, Freedom to Operate analysis completed Two human studies demonstrate strong product performance 510(k) regulatory path, FDA filing 3Q09 Strategic partner discussions ongoing Medical device suppliers Major distributors Strong team Significant early stage company/medical device experience Distinguished advisors and consultants