LMS closes $2.6 million private placement

    MONTREAL, Feb. 26 /CNW Telbec/ - LMS Medical Systems Inc. (AMEX:LMZ;
TSX:LMZ) announced today that it has closed a private placement undertaken
through Griffin Securities of New York City.
    The private placement, which comprised 2,375,229 common shares generating
$2,615,898 in gross proceeds, prior to the deduction of placement agent fees
and offering related expenses, was substantially subscribed for by US based
institutional investors. Proceeds from the financing will be used for general
corporate and working capital purposes.
    "We are extremely pleased and appreciative to have received such strong
support from new institutional investors", commented Diane Cote, CEO of LMS.

    ABOUT LMS

    LMS is a leader in the application of advanced mathematical modeling and
neural networks for medical use. The LMS CALM(TM) Decision Support 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 labor
and delivery.

    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,. [phone] Ext. 238, Fax: [phone];
[e-mail], www.lmsmedical.com; David Gordon, Grant Howard, The
Howard Group Inc., 1-888-221-0915, [e-mail],
www.howardgroupinc.com