LMS announces strategic restructuring initiative

    MONTREAL, Nov. 7 /CNW Telbec/ - LMS Medical Systems (TSX: LMZ), a
healthcare technology company and developer of the CALM(R) clinical
information system and risk management software tools for obstetrics,
announced the company has implemented a strategic restructuring plan to reduce
cash burn and refocus the company on opportunities viewed by the Board and
Management to increase shareholder value.
    The restructuring plan is expected to achieve cost reduction through a
decrease in the work force of approximately 50% coupled with additional
operating expense reductions aligned with the refocused operations, allowing
the company to achieve a leaner operating profile. LMS' top priority remains
its customer base and the restructuring plan is intended to allow it to
maintain the high level support and service its distributors and healthcare
industry clients have come to expect and appreciate.
    The company continues to work on securing financing to meet its
operational requirements. It is also exploring all strategic alternatives
focused at achieving increased shareholder value.

    ABOUT LMS

    LMS is a leader in the application of advanced mathematical modeling and
neural networks for medical use. The LMS CALM(TM) 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: Yves Grou, Chief Financial Officer, LMS Medical
Systems Inc., (514) 488-3461 Ext. 238, Fax: (514) 488-1880,
investor@lmsmedical.com, www.lmsmedical.com; David Burwell, The Howard Group
Inc., Toll Free: 1-888-221-0915, Info@howardgroupinc.com; Grant Howard, The
Howard Group Inc., Toll Free: 1-888-221-0915, Info@howardgroupinc.com;
www.howardgroupinc.com