MONTREAL, Nov. 7 /PRNewswire-FirstCall/ -- LMS Medical Systems (TSX: LMZ, AMEX: LMZ), a healthcare technology company and developer of the CALM(TM) system today reported results of operations for the second quarter ended September 30th, 2005. All amounts are in Canadian dollars. Revenue for the second quarter totaled $551,000 versus $76,000 for the same period last year. Revenue for the six months ended September 30, 2005 was $819,000 compared to $308,000 for the same period in the prior year. The increase in revenue is the result of new hospital installations occurring subsequent to the release of CALM(TM)3.0. The loss for the second quarter of fiscal 2006 was $2,133,000 ($0.13 per share) versus a loss of $2,275,000 ($0.16 per share) for the same period in fiscal 2005. The decreased loss is a function of the increase in revenue during the period, offset by higher net research and development expenses resulting from a decrease in the amount of claimable investment tax credits and higher administrative costs associated from being a public company in the U.S. and Canada. Cash, cash equivalents and short-term investments held to maturity, as at September 30, 2005, totaled $8,345,000 versus $11,858,000 as at March 31, 2005. The decrease of $3,513,000 is predominantly a function of our net loss for the six months ended September 30, 2005, offset by non cash items and net changes in non cash working capital. An expanded Management's Discussion and Analysis for the quarter, and previous periods, is accessible on the LMS website at http://www.lmsmedical.com/ Highlights: - Revenue for the quarter totaled $551,000 versus $76,000 for the same quarter in the prior year. Revenue for the six months ended September 30, 2005 was $819,000 compared to $308,000 for the same period in the prior year. Sales of the Company's CALM 3.0 software, which became available to the marketplace at the end of August 2005, accounted for a substantial portion of the revenues. - We have completed CALM 3.0, our labor and delivery product suite for large scale health facilities and released the final product in the second quarter. CALM 3.0 is the newest release of our CALM suite of products, and is currently scheduled for installation at a number of leading U.S. based hospitals. - We unveiled CALM(TM) Shoulder Screen, a new addition to our OB Guidance line of products. CALM Shoulder Screen focuses on the prediction of shoulder dystocia, a key obstetrical challenge. We expect to release a web based version of this product in the coming weeks. - We received the CE mark for CALM(TM) Patterns. CALM Patterns forms a suite of tools with CALM(TM) Curve and CALM Shoulder Screen. This clearance enables LMS to extend the full suite of CALM risk management solutions into additional geographic territories. The release of CALM Patterns is scheduled for the first half of 2006. - Ms. Catherine Rommal was appointed to our Risk and Patient Safety Advisory Board. Ms. Rommal is a consultant and principal of Perinatal Risk Consulting. To date, Dr. Thomas J. Garite, Professor Emeritus in the Department of Obstetrics and Gynecology at the University of California, Irvine, Editor in Chief of the American Journal of Obstetrics and Gynecology; Dr. Eric Knox, Professor of OB/GYN at the University of Minnesota and Dr. Marilyn Sue Bogner, President and Chief Scientist with the Institute for the Study of Human Error have been appointed to the Advisory Board. Presiding as Chair is Mr. Harry G. Hohn of New York. Mr. Hohn is the former Chairman and Chief Executive Officer of New York Life. 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 decision support 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 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 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. DATASOURCE: LMS MEDICAL SYSTEMS INC. CONTACT: please contact: Andrea Miller, Communications, LMS Medical Systems Inc., (514) 488-3461 Ext. 222, Fax: (514) 488-1880, ; Web : http://www.lmsmedical.com/

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