Mr. Etienne Grima reports

CARDIOCOMM SOLUTIONS EXECUTES CUSTOM SOFTWARE DEVELOPMENT AND ROYALTY AGREEMENTS WITH IMEDICAL INNOVATIONS, INC. FOR WEARABLE GSM ENABLED ECG MONITORING

CardioComm Solutions Inc. has executed a series of agreements involving a custom software development and royalty licence with the newly formed and Toronto-based iMedical Innovations Inc.

On Sept. 15, 2014, the two organizations completed three agreements as follows: a software development agreement, a royalty agreement and a software escrow agreement. Under the agreements, CardioComm Solutions will receive non-recurrent engineering fees associated with developing a custom electrocardiogram management software solution for exclusive use by iMed for its device's entry into the ECG monitoring services market. Following the launch of the iMed business, CardioComm Solutions will receive an ECG royalty payment paid on a per-patient-monitored basis.

In March, 2013, CardioComm Solutions first announced a joint venture intent with Sensor Mobility to finance CardioComm Solutions' subsidiary, iMedical, for development of a dry-electrode, wearable ECG monitor that would utilize GSM (global system for mobile communications) technologies to send ECGs to medical monitoring centres. Over the ensuing 18 months, the organizations worked to finalize the iMed investment terms. As a result, on July 8, 2014, CardioComm Solutions entered into a memorandum of understanding (MOU) for the staged transfer of the iMedical name (Canadian and U.S. registrations) from CardioComm Solutions to iMed, as well as the acquisition of assets of Sensor Mobility by iMed. The MOU further outlined the intent of iMed and CardioComm Solutions to execute a separate series of agreements by the end of September, 2014.

"iMed is targeting an entry into the [United States-based mobile cardiac telemetry] services market, an area with which CardioComm Solutions has extensive knowledge and experience. We will leverage our Gems, GlobalCardio and Guava software technology solutions to develop a unique product that will specifically meet the requirements of the iMed device(s) while allowing adherence to U.S. MCT billing code rules," stated Etienne Grima, chief executive officer for CardioComm Solutions.

iMed will be responsible for the design, Food and Drug Administration submission, manufacturing, and marketing of the wearable ECG monitors, as well as the marketing of ECG monitoring services in North America. CardioComm Solutions will work with iMed on the FDA 510K submission for clearance of the custom software. The company acknowledges that the agreements will be binding contingent on iMed completing its due diligence reviews, which must be completed no later than Oct. 17, 2014.

"The global cardiac monitoring and cardiac rhythm management market was estimated to be worth $18.4-billion in 2012, according to a January, 2013, report by MarketsandMarkets titled "Cardiac Monitoring & Cardiac Rhythm Management (CRM) Market [ECG, Implantable Loop Recorder, Holter, Implantable Cardioverter Defibrillator (ICD), Automated External Defibrillator (AED), Pacemaker, CRT-D, CRT-P] -- Global Forecasts to 2017." This current custom software development opportunity is the second large-scale MCT engineering project for us, the last being completed for Philips Healthcare. The cardiac monitoring market will continue to grow at a significant pace in the next five years due to the increasing incidence of cardiovascular diseases, an aging population, rising cost of cardiac disease treatment and government regulations in favour of cardiac monitoring," noted Simi Grosman, member of the board of directors for CardioComm Solutions. "It is a space that we understand well, and through our partnership with iMed, it is our intention to continue to play and important role in development of this market through the introduction of novel ECG monitoring devices and innovative software solutions that adhere to the requirements of all regulatory bodies."

The company will provide further details on the financing to be received upon completion of due diligence by iMed.

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