MONTREAL, April 6 /CNW Telbec/ - LMS Medical Systems Inc. (TSX: LMZ), a
healthcare technology company and developer of the CALM(R) clinical
information system and risk management software tools for obstetrics,
announced today that its wholly-owned subsidiary, LMS Medical Systems (Canada)
Ltd. ("LMS"), has sold its software for electronic obstetrical records with
surveillance and archiving of electronic fetal monitoring information (the
"Software") to an affiliate of McKesson Corporation ("McKesson"). Under the
terms of the sale, LMS has obtained a perpetual royalty-free license from
McKesson to continue to use, develop and distribute the Software outside of
the McKesson Clinical customer base.
In connection with the sale of the Software, LMS has entered into a
services agreement (the "Services Agreement") with McKesson Information
Solutions LLC ("MIS") whereby LMS will provide MIS with certain knowledge
transfer, implementation, maintenance and support and consulting services.
Under the Services Agreement, LMS will continue to earn service fees through
its 2010 fiscal year. LMS anticipates that the total value of the sale
proceeds and related services fees will be up to US $3 Million, depending upon
the extent of the services performed.
"This transaction will continue to allow LMS and McKesson to provide
innovative and comprehensive applications addressing the needs of and
improving the outcomes in today's obstetrics", said William Horn, Interim
Chief Executive Officer and Chief Financial Officer of LMS. In addition, Mr.
Horn continued, "With the sale proceeds and service fees expected to be
received by LMS in connection with this transaction, LMS will be well
positioned to build on its maternal-fetal risk management technology."
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 or 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 Canadian securities regulatory authorities. Unless required by law,
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:
For further information: William Horn, Interim Chief Executive, Officer
and Chief Financial Officer, LMS Medical Systems Inc., (617) 948-2160, Fax:
(617) 948-2161, email@example.com, www.lmsmedical.com; Grant Howard/Dave
Burwell, The Howard Group Inc., Toll Free: 1-888-221-0915,