The Analysis Group study focused on treatment-resistant (TR) patients, whoadd significantly to treatment costs -- more than $8,000 annually,according to a 2004 study by investigators Howard Birnbaum and PaulGreenberg of Analysis Group. "This patient group is so costly because theyhave almost double the office visits, more than three times the outpatientclaims and nearly four times the inpatient claims of patients who are nottreatment-resistant," noted Dr. Birnbaum. Without the evidence-basedguidance provided by rEEG®, physicians typically resort to "trial anderror" in choosing among the over 100 FDA-approved drugs for treatingpsychiatric disorders.

The study authors found that a sample health plan with 20 million membersutilizing rEEG® for its 80,000 patients with treatment-resistant mentaldisorders would save up to 40 percent in behavioral care costs, andapproximately $212 million annually in direct health care costs. An evengreater savings in reduced absence and productivity losses brings the totalto over $550 million, illustrating that the impacts of treatment failureare not limited to behavioral health costs, but are in fact even greaterfor health plans, disability plans, and employers.

"We spend over $30 billion on retail prescription drugs each year forbehavioral disorders, but for many these medications don't work, or losetheir effect over time. The myth is that these costs are limited tobehavioral care," said George Carpenter, President of CNS Response. "Thereality is that these patients drive four times higher spending for regularmedical care, almost seven times more in prescription costs, and representthe majority of lost work days for employers. Patients have ordered over5,000 rEEG® tests to date, in many cases paying on their own, and theirinsurers gained the benefit. This report and budget impact model presentclear evidence of the direct savings for payers reimbursing rEEG® testingfor their most costly plan members."

These latest economic results come on top of clear evidence from a seriesof clinical studies on rEEG® in treatment-resistant patients. Thepatients studied suffered from a range of disorders including depression,bipolar, attention-deficit hyperactivity disorder and anxiety and did notshow significant improvement from initial or subsequent treatment regimens.By helping physicians prescribe more effective, individualized medications,rEEG® consistently -- and often dramatically -- improved the patients'quality of life.

"rEEG® is a win for everyone," said Carpenter, "the patient, thephysician and the payer."

About CNS Response

CNS Response is a life-sciences data company whose patented system providestreatment guidance to psychiatrists and other physicians for patients withbehavioral (mental or addictive) disorders. This technology allows CNSResponse to create and provide simple reports ("rEEG® Reports") thatspecifically guide physicians to treatment strategies based on thepatient's own physiology.

rEEG® utilizes traditional electroencephalography (EEG) in conjunctionwith a normative database and a proprietary clinical (symptomatic) databaseto identify the following: (1) medication classes most likely to be needed;and (2) medications within these classes with the most probable treatmentpotential for each patient. Reports are provided to physicians in arelationship analogous to that of a reference laboratory. Prospective,retrospective and field studies of treatment-resistant patients havereported treatment success of 70% or greater in managed care, outpatientpsychiatric and residential substance abuse clinical settings.

In addition to providing analytical support to physicians, CNS Response isalso an aid to pharmaceutical developers, who can use rEEG to (1) stratifystudy populations to improve the success of FDA clinical trials; (2)provide insight on effective therapeutic dosing of investigational drugs;(3) identify additional indications for psychiatric medications; (4)provide insight into effective drug combinations; and (5) discoveropportunities for decision analytics and support. In addition to theseapplications, CNS Response continues to investigate the use of rEEGanalysis for development of proprietary pharmaceutical opportunities.

About Analysis Group Economics

Analysis Group (www.analysisgroup.com) provides economic, financial, andbusiness strategy consulting to leading corporations, law firms, andgovernment agencies. The firm has more than 450 professionals, with officesin Boston, Chicago, Dallas, Denver, Los Angeles, Menlo Park, New York, SanFrancisco, Washington, and Montreal. Analysis Group's Health Economicspractice provides a broad range of consulting services, including cost ofillness research; cost-effectiveness modeling; pricing and contractingstrategy; and other health outcomes studies.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of1995

Except for the historical information contained herein, the mattersdiscussed are forward-looking statements made pursuant to the safe harborprovisions of the Private Securities Litigation Reform Act of 1995, asamended. These statements involve risks and uncertainties as set forth inthe Company's filings with the Securities and Exchange Commission. Theserisks and uncertainties could cause actual results to differ materiallyfrom any forward-looking statements made herein.

Contact:Investor Relations:Marty TullioMcCloud Communications LLC949.553.9748Email Contact