LMS adopts shareholder rights plan

    MONTREAL, March 27 /CNW Telbec/ - LMS Medical Systems (TSX: LMZ, AMEX:  
LMZ) ("LMS"), a healthcare technology company and developer of the CALM(R)
clinical information system and risk management software tools for obstetrics,
announced that the board of directors (the "Board") of LMS has approved the
adoption of a shareholder rights plan ("Rights Plan") for which shareholder
approval will be sought at its annual meeting of shareholders to be held
August 12, 2008. The TSX has accepted notice for filing of the Rights Plan.
    The purpose of the Rights Plan is to provide shareholders and the Board
with adequate time to consider and evaluate any unsolicited bid made for LMS,
to provide the Board with adequate time to identify, develop and negotiate
value-enhancing alternatives, if considered appropriate, to any such
unsolicited bid, to encourage the fair treatment of shareholders in connection
with any take-over bid for LMS and to ensure that any proposed transaction is
in the best interests of the shareholders of LMS.
    The Rights Plan is similar to other rights plans adopted by many Canadian
corporations. The Rights Plan is not triggered if an offer to acquire common
shares of LMS would allow sufficient time for shareholders to consider and
react to the offer. The Rights Plan would allow shareholders to decide whether
to tender or not to tender their common shares without the concern that they
will be left with illiquid common shares of LMS should they not tender. The
issuance of the rights will not change the manner in which shareholders trade
their common shares of LMS.
    The Rights Plan was not proposed in response to, or in anticipation of,
any pending, threatened or proposed acquisition or take-over bid. The Board
did not adopt the Rights Plan to prevent a take-over of LMS, to secure the
continuance of management or the directors in their respective offices or to
defer offers for the common shares of 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:

For further information: about LMS Medical Systems: Yves Grou, Chief
Financial Officer, LMS Medical Systems Inc., (514) 488-3461 Ext. 238, Fax:
(514) 488-1880, yves.grou@lmsmedical.com, www.lmsmedical.com

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