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SPO Medical Completes Restructuring Plan
Date:2/2/2010

d. should enable further growth of our medical product offering in the market. As a result, we will be focusing all our corporate efforts on new non-medical product offerings which relate to consumer mass-market opportunities. The licensing agreement and associated restructuring plan should have no impact on the current 200,000 SPO Medical end-users or worldwide reseller network that operates in over 40 countries that will now be serviced by SPO Medical Systems Ltd. - I have every confidence that the existing PulseOx product line will be further enhanced by Mr. Sarussi and his team."

Israel Sarussi, Managing Director of SPO Medical Systems Ltd. commented: "The opportunity now exists for further enhancement of the existing PulseOx product line in addition to expanding the offering by incorporating new medical products and related technologies going forward. We look forward to maintaining the high level of support and commitment to the existing customer base and to the SPO authorized resellers worldwide."

During 2010, SPO Medical Inc. plans to embark on business development activities that will focus on various commercial applications relating to the implementation of reflectance pulse oximetry for non-medical markets. Applications include the consumer sports watch and associated wellness devices, a baby movement monitor and various other mass-market product opportunities that could use pulse oximetry in a non-invasive, convenient manner enabling accurate and effective measurements of vital sign information. Braunold continued; "Commercially, we believe that our unique technology can attract interest from various non-medical corporations who are seeking commercial solutions for mass-market consumer markets; in addition, this strategy should further contribute to potentially increasing value for the SPO shareholders."

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