LMS Medical Systems Inc. sells substantially all of its assets to PeriGen (Canada) Ltd.

    NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISTRIBUTION IN THE
    UNITED STATES OF AMERICA

    MONTREAL, July 23 /CNW Telbec/ - LMS Medical Systems Inc. (the "Company")
announced today that its wholly owned operating subsidiary, LMS Medical
Systems (Canada) Ltd. ("LMS Canada"), has entered into an asset sale agreement
(the "Agreement") with PeriGen (Canada) Ltd. ("PeriGen") for the sale of
substantially all of its assets for a purchase price of US$3,500,000.
    LMS Canada entered into receivership on June 10, 2009 and as such the
sale of its assets was subject to approval by the Superior Court (Quebec)
which was received on July 23, 2009. The Company will issue further
announcements regarding the status of its restructuring efforts in due course.

    About LMS

    LMS is a leader in the application of advanced mathematical modeling and
neural networks for medical use. The LMS CALM Suite provides physicians,
nursing staff, risk managers and hospital administrators with clinical
information systems and risk management tools designed to improve outcomes and
patient care for mothers and their infants during childbirth.

    Except for historical information contained herein, the matters discussed
in this news release are forward-looking statements. Because these
forward-looking statements involve risks and uncertainties, there are
important factors that could cause actual results to differ materially from
those expressed implied by the forward-looking statements including, but
without limitation, economic conditions in general and in the healthcare
market, the demand for and market for our products in domestic and
international markets, our current dependence on the CALM product suite, the
challenges associated with developing new products and obtaining regulatory
approvals if necessary, research and development activities, the uncertainty
of acceptance of our products by the medical community, the lengthy sales
cycle for our products, third party reimbursement, competition in our markets,
including the potential introduction of competitive products by others, our
dependence on our distributors, physician training, enforceability and the
costs of enforcement of our patents, potential infringements of our patents
and the other factors set forth from time to time in the Company's filings
with the United States Securities and Exchange Commission and with the
Canadian Securities Commissions. The Company has no intention of or obligation
to update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.

For further information: William Horn, CEO/CFO, LMS Medical Systems
Ltd., (514) 488-3461, Fax: (514) 488-1880; Philippe Jordan, CMA, CIRP,
Trustee, Samson Belair/Deloitte & Touche Inc., (514) 393-8386, Fax: (514)
390-4103