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Natus to Acquire Grass Technologies Product Group from Astro-Med



  Natus to Acquire Grass Technologies Product Group from Astro-Med

Business Wire

SAN CARLOS, Calif. & WEST WARWICK, R.I. -- January 7, 2013

Natus Medical Incorporated (Nasdaq:BABY) and Astro-Med, Inc. (Nasdaq:ALOT)
today announced that the companies have entered into a definitive agreement
for Natus to acquire the Grass Technologies Product Group from Astro-Med. The
Grass Technologies Product Group includes clinically differentiated
neurodiagnostic and monitoring products, including a portfolio of
polysomnography (PSG) and electroencephalography (EEG) systems for both
clinical and research use and related accessories and proprietary electrodes.

The transaction is expected to close on January 31, 2013. Natus will fund the
approximate $18.6 million cash purchase price with existing cash and
borrowings under its credit facility. Astro-Med reported revenue from the
Grass segment of $18.5 million for the fiscal year ended January 31, 2012.
Astro-Med will retain its Grass manufacturing facility and the companies have
entered into an agreement whereby Astro-Med will continue to manufacture the
Grass products and provide other transition services for a period of time,
after which Natus will acquire any remaining inventory.

“Grass Technologies has been consistently profitable and we expect Grass to be
accretive to our earnings in our first full quarter of ownership and for the
full year 2013,” said Jim Hawkins, Chief Executive Officer of Natus. “The
Grass acquisition expands our presence into certain international markets,
adds to our disposable product offerings, and provides Natus an entry into the
research segment of the Neurodiagnostic market. This acquisition will continue
to allow us to bring additional value to customers.”

“After completing a strategic review of our businesses we have determined that
it is in the best interest of our shareholders to focus on our fast growing
Quick Label Systems and Test & Measurement business segments,” said Everett V.
Pizzuti, Chief Executive Officer of Astro-Med. “We have been working on
several unique opportunities in these two segments and as a result, we have
not been able to devote the resources needed to continue the growth of Grass.
We know that Natus, with its worldwide strength and focus in neurology, is an
ideal place for Grass to flourish.”

The Grass Instrument Company was founded in 1935 by Albert Grass, who
pioneered the development and production of the first EEG machines used in
medical applications. Approximately one third of Grass revenue is attributable
to consumables and service, with sales from international markets contributing
to 38% of revenue. Products used in research, which represented 14% of Grass
revenue for the year ended January 31, 2012, are sold to university
researchers, pharmaceutical companies, and hospitals.

About Natus Medical

Natus is a leading provider of healthcare products used for the screening,
detection, treatment, monitoring and tracking of common medical ailments in
newborn care, hearing impairment, neurological dysfunction, epilepsy, sleep
disorders, and balance and mobility disorders. Product offerings include
computerized neurodiagnostic systems for audiology, neurology,
polysomnography, and neonatology, as well as newborn care products such as
hearing screening systems, phototherapy devices for the treatment of newborn
jaundice, head-cooling products for the treatment of brain injury in newborns,
incubators to control the newborn's environment, and software systems for
managing and tracking disorders and diseases for public health laboratories.

About Astro-Med

Astro-Med, Inc. is a leading manufacturer of specialty high tech printing
systems, electronic medical instrumentation, and test and measurement data
acquisition systems. Astro-Med, Inc. products are sold under the brand names
Astro-Med, Grass Technologies and QuickLabel Systems, and are employed around
the world in a wide range of aerospace, medical, military, industrial,
labeling and packaging applications. Astro-Med, Inc. is a member of the
Russell Microcap Index. Additional information is available by visiting
www.Astro-MedInc.com.

This news release and the information contained herein contains
forward-looking statements addressing expectations, prospects, estimates and
other matters that are dependent upon future events or developments. The
matters discussed in these forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially from those
projected, anticipated or implied. Forward-looking statements include, but are
not limited to, statements about the expected timing of the anticipated sale,
sale price, and the impact of the acquisition on Natus’ profitability in 2013.
The forward-looking statements contained herein are based on current
expectations and assumptions and not on historical facts. There are important
factors that could cause actual results to differ materially from those set
forth in the forward-looking statements. Additional factors that may affect
future results are described in Natus' Annual Report on Form 10-K for the year
ended December 31, 2011, Astro-Med’s Annual Report on Form 10-K for the year
ended January 31, 2012, and other filings by each company with the U.S.
Securities and Exchange Commission. Except to the limited extent required by
applicable law, Natus and Astro-Med disclaim any obligation to update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise.

Additional information about Natus Medical can be found at www.natus.com.
Additional information about Astro-Med can be found at www.Astro-MedInc.com.

Contact:

Natus Medical Incorporated
Steven J. Murphy, 650-802-0400
Vice President Finance and Chief Financial Officer
InvestorRelations@Natus.com
or
Astro-Med, Inc.
Everett V. Pizzuti, 800-343-4039
Chief Executive Officer
Joseph P. O'Connell, 800-343-4039
Chief Financial Officer
www.Astro-MedInc.com
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