$1.7m Extension of SBIR grant from NIMH

Electrical Geodesics, Inc.

$1.7m Extension of SBIR grant from NIMHto develop paediatric head models for improved imaging of neurological development

EUGENE, OREGON, US, 25 September 2014 - Electrical Geodesics, Inc. ("EGI" or the "Company"), a leading neurodiagnostic medical technology company, today announces the $1.7m extension of an existing Phase II SBIR grant from the US National Institute of Mental Health ("NIMH") to support the further development of head models to improve the imaging of brain activity in infants and children.

In conjunction with Washington University, EGI will work over the next three years to further refine paediatric head models using new computational methodologies. These refined head models, when combined with the non-invasive imaging technologies, including EGI's dense array EEG guided by its proprietary sensor location tools, should deliver vital tools to better understand the development of a number of debilitating conditions in children such as epilepsy, ADHD and depression.

Don Tucker, PhD, Chairman and CEO of EGI, said:

"We are delighted to see the support from NIMH for this critical project which we believe can help improve the understanding of a number of significant conditions that arise from developmental abnormalities in infants. Through better imaging, better treatment will follow, and this is especially important for the developing brains of infants and children. This grant further demonstrates the value of EGI's proprietary computational capabilities, alongside dense array EEG and structural imaging in delivering accurate images of the electrical activity of the brain. Accurate imaging is essential to the effective assessment of brain abnormalities as well as the delivery of neuromodulation which we are targeting through our novel GTEN technology."

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Notes to Editors

Electrical Geodesics, Inc. in Summary

Founded in 1992, EGI designs, develops and commercialises a range of non-invasive neurodiagnostic and neuromodulation products used to monitor, interpret and modulate brain activity, based on its proprietary dense array electroencephalography ("dEEG") platform technology. The Company's technology uses up to 256 sensors, providing much higher resolution brain activity data compared to conventional 8 or 16 channel EEG and is used in medical, clinical and research settings in a diverse range of applications including important areas such as the diagnosis and monitoring of epilepsy, neurosurgical planning, sleep assessment, and many others.

EGI's dEEG systems, available in the GES 300 and now the GES 400 lines, capitalise on the Company's unique Hydrocel Geodesic Sensor Net which allows faster, easier, and more convenient placement of many EEG sensors in an even distribution over the entire scalp, providing more accurate and precise diagnosis and measurement. EGI's technology is now widely used in neuroscience research laboratories and is becoming more commonly used in clinics, care centers, and hospitals around the world. Data is measured and visualised using EGI's proprietary amplifier technology and software, providing a complete, advanced, high-resolution EEG platform. The Company's products are compatible with multiple diagnostic and imaging technologies, including magnetic resonance (MR) imaging, functional MRI (fMRI), and magneto-encephalography (MEG).

See our website www.egi.com

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