In 1991, a team of highly skilled engineers and clinicians from various disciplines began development of a new system for measuring blood pressure. Their goal was to develop a system that was non-invasive, as accurate as an indwelling catheter, measured continuously and did not require calibration. This team and their goal formed the nucleus for the company that is Medwave.

Medwave's team of engineers and clinicians began their task by researching all previous efforts to measure blood pressure non-invasively. One by one, each of these technologies was evaluated and rejected. This led the team to begin to think about the problem in a new way: to measure arterial waveforms and calculate blood pressure from these measurements. This approach met all the teams original goals, and from it the Vasotrac® system emerged. Numerous patents have been, and continue to be, issued to Medwave based on the development of this new technology.

Early in 1995 the Vasotrac system received FDA clearance for market. Sales to selected hospitals throughout the Midwest provided valuable experience using the system in clinical practice. In early 2000, the company began its commercialization phase by entering into numerous distribution agreements. Currently the company has distribution established in more than 20 countries.

Since early 2000, with a combination of direct sales professionals and distribution agreements covering most of the United States, Medwave has continued to expand its presence in a variety of sales channels.

Throughout 2001 and 2002, the company introduced several enhancements to its technology. Pediatric capabilities, interfacing into larger patient monitoring platforms, and the ability to function well in difficult clinical environments has allowed Medwave to sell into areas such as Pediatrics, Bariatrics, Critical Care, Cardiology, Emergency Departments, Women's Health, and the EMS environment.

Several prominent medical centers have adopted Medwave's technology and have found dramatic improvements such as A-line (invasive catheter) reduction, enhancement of patient comfort, and the ability to monitor difficult patients, all clinical benefits not found with conventional non-invasive technology.

WILLIAM D. CORNELIUSON, has been a Director of the Company since May 1999 and Chair of the Board since February 2002. Mr. Corneliuson is President of B.C. Holdings, Inc., a private investment company. Mr. Corneliuson has been with B.C. Holdings, Inc. since 1993. From 1976 to 1993, Mr. Corneliuson was President, Co-Founder, and Vice Chairman of the Board of Strong/Corneliuson Capital Management, Inc. He was also co-founder of the Strong family of mutual funds.

FRANK A. KATAROW, a Director of the Company since 2002, has been President and Chief Operating Office of BCI, Inc., a designer, manufacturer and distributor of patient monitoring equipment, since November 1993. Mr. Katarow has been employed by BCI since October 1980 serving in various capacities, including Executive Vice President from January 1993 to November 1993, Senior Vice President and General Manager from March 1992 to January 1993, and Vice President of Operations from June 1990 to March 1992. In addition, Mr. Katarow is the President of SurgiVet, Inc. the wholly owned veterinary division of BCI, Inc. BCI, then a public company, was successfully sold to Smiths Group, plc., in 1999, a public company traded on London exchange.

SOLOMON ARONSON M.D., FACC, FCCP, FAHA, joined the Board of Directors at Medwave in August 2003. Prior to joining Medwave, Dr. Aronson was Professor of Anesthesia and Critical Care at the University of Chicago and Chief of the Cardiothoracic and Vascular Anesthesia Division of the University of Chicago Hospitals and Clinics. In 1983, Dr. Aronson received his MD with honors in research from the Medical College of Wisconsin. In 1986, after completing his residency at the University of Texas where he served as Chief Resident in 1985, he was awarded a fellowship in cardiac and vascular anesthesia at the Texas Heart Institute in Houston. Following his fellowship in Texas, Dr. Aronson was recruited to the University of Chicago, Department of Anesthesia and Critical Care where he served as an instructor, assistant professor, and associate professor before being promoted to full professor in 1999. Dr Aronson is active in many professional organizations, including the American College of Cardiology, the American College of Chest Physicians, the American Heart Association, the American Society of Echocardiography for which he is Chair of the Intraoperative Council, the Society of Cardiovascular Anesthesiology for which he has been elected to serve on the Board of Directors, the National Board of Echocardiography for which he has also served on the Board of Directors, the American Society of Anesthesiology for which he serves on the Economic Committee, and the International Anesthesia Research Society. Dr. Aronson has recently been honored to serve through 2007 on the Anesthetic and Life Support Drug Advisory Committee for the FDA. He has also been honored with listings in "Who's Who" & "How to Find the Best Doctors in America". In 2000, 2001, and 2003, he was elected by his peers to "The Best Doctors in America". Dr. Aronson has authored more than 75 journal articles, 40 book chapters, one textbook, and over 100 abstracts, and he has lectured extensively at universities throughout the United States and in many foreign countries.