Somnus Completes Private Placement

Apr 26, 2001, 01:00 ET from Somnus Medical Technologies, Inc.

    SUNNYVALE, Calif., April 26 /PRNewswire/ --
 Somnus Medical Technologies, Inc. (Nasdaq:   SOMN), today announced the
 consummation of a $3.35 million private financing.  Somnus sold 2.5 million
 shares of Common Stock to new and existing investors, led by
 Easton Hunt Capital Partners, a $110 million private equity/venture capital
 fund and Brookside Capital Management, an affiliate of Bain Capital.  Other
 investors included Westfield Capital Management, Oracle Partners, and
 HPB Associates.  The purchase price of $1.34 per share reflects the average
 closing stock price of the Company's Common Stock for seven trading days
 preceding the sale.  As part of the transaction, the investors also received
 warrants initially exercisable for up to 625,000 shares of Common Stock at a
 premium to market prices.
     In announcing the funding, John G. Schulte, President and CEO, said, "This
 private placement is an important step toward achieving our near term business
 objectives, including the addition of independent sales representatives, the
 marketing of our new lower cost Elypse(TM) control unit, and the anticipated
 launch of our pediatric tonsil handpiece later this year.  Additionally, we
 are particularly pleased to have received support from our existing investor
 base, as well as funding from a sophisticated group of new investors who know
 the Company well and are excited about the market opportunity that lies
 ahead."
     The Company continues to work with ING Barings with regard to strategic
 alternatives, including potential acquisition.
 
     Conference Call Information
     Somnus will hold a conference call discussing this release and first
 quarter 2001 results at 11:00 a.m. EDT Friday, April 27.  The conference call
 will be simultaneously webcast on www.streetevents.com and at the Company's
 website located on www.somnus.com.  A telephonic replay of the conference call
 can be accessed for 24 hours by dialing 888-258-7854, passcode 06330.  A
 webcast of the conference call will be available on the Somnus website and for
 one month on the StreetEvents website.
 
     About the Somnoplasty System and Its Applications
     Somnus is pioneering a new standard of care for the treatment of upper
 airway disorders.  The Company's proprietary Somnoplasty System is the only
 temperature-controlled radiofrequency-based technology that has been
 previously cleared by the FDA for use in the treatment of chronic nasal
 obstruction and sleep disordered breathing -- obstructive sleep apnea
 syndrome, upper airway resistance syndrome, habitual snoring, as well as a
 device for tissue coagulation in the head and neck.  The Somnoplasty
 procedures work by heating a targeted area of obstructive tissue below the
 surface.  The body naturally resorbs the heated area over a period of three to
 eight weeks reducing tissue volume.  Clinical evaluations are underway to
 further expand the indications for the treatment of other upper airway
 obstructions.
 
     Forward-Looking Statements
     This news release contains forward-looking statements that involve risks
 and uncertainties that could cause actual results or events to differ
 materially from those in such forward-looking statements.  Potential risks and
 uncertainties include, without limitation, the success of our sales and
 marketing efforts, our ability to train physicians and educate patients on the
 benefits of our products and the procedures in which they are used, obtaining
 regulatory clearance for the treatment of pediatric tonsils, and those risks
 and uncertainties set forth in our latest annual report on Form 10-K filed
 with the Securities and Exchange Commission.  Copies of the annual report on
 Form 10-K are available by calling Kay Hendrix, at 408-617-3499.
     Somnus is headquartered in Sunnyvale, Calif., and its stock is traded on
 the Nasdaq National Market System under the symbol SOMN.  The company's Web
 site addresses are http://www.somnus.com and http://www.somnoplasty.com.
     NOTE:  Somnus, Somnoplasty and the Somnus Medical Technologies logo are
 registered trademarks or service marks of Somnus Medical Technologies, Inc.
 Patents pending.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X61665383
 
 

SOURCE Somnus Medical Technologies, Inc.
    SUNNYVALE, Calif., April 26 /PRNewswire/ --
 Somnus Medical Technologies, Inc. (Nasdaq:   SOMN), today announced the
 consummation of a $3.35 million private financing.  Somnus sold 2.5 million
 shares of Common Stock to new and existing investors, led by
 Easton Hunt Capital Partners, a $110 million private equity/venture capital
 fund and Brookside Capital Management, an affiliate of Bain Capital.  Other
 investors included Westfield Capital Management, Oracle Partners, and
 HPB Associates.  The purchase price of $1.34 per share reflects the average
 closing stock price of the Company's Common Stock for seven trading days
 preceding the sale.  As part of the transaction, the investors also received
 warrants initially exercisable for up to 625,000 shares of Common Stock at a
 premium to market prices.
     In announcing the funding, John G. Schulte, President and CEO, said, "This
 private placement is an important step toward achieving our near term business
 objectives, including the addition of independent sales representatives, the
 marketing of our new lower cost Elypse(TM) control unit, and the anticipated
 launch of our pediatric tonsil handpiece later this year.  Additionally, we
 are particularly pleased to have received support from our existing investor
 base, as well as funding from a sophisticated group of new investors who know
 the Company well and are excited about the market opportunity that lies
 ahead."
     The Company continues to work with ING Barings with regard to strategic
 alternatives, including potential acquisition.
 
     Conference Call Information
     Somnus will hold a conference call discussing this release and first
 quarter 2001 results at 11:00 a.m. EDT Friday, April 27.  The conference call
 will be simultaneously webcast on www.streetevents.com and at the Company's
 website located on www.somnus.com.  A telephonic replay of the conference call
 can be accessed for 24 hours by dialing 888-258-7854, passcode 06330.  A
 webcast of the conference call will be available on the Somnus website and for
 one month on the StreetEvents website.
 
     About the Somnoplasty System and Its Applications
     Somnus is pioneering a new standard of care for the treatment of upper
 airway disorders.  The Company's proprietary Somnoplasty System is the only
 temperature-controlled radiofrequency-based technology that has been
 previously cleared by the FDA for use in the treatment of chronic nasal
 obstruction and sleep disordered breathing -- obstructive sleep apnea
 syndrome, upper airway resistance syndrome, habitual snoring, as well as a
 device for tissue coagulation in the head and neck.  The Somnoplasty
 procedures work by heating a targeted area of obstructive tissue below the
 surface.  The body naturally resorbs the heated area over a period of three to
 eight weeks reducing tissue volume.  Clinical evaluations are underway to
 further expand the indications for the treatment of other upper airway
 obstructions.
 
     Forward-Looking Statements
     This news release contains forward-looking statements that involve risks
 and uncertainties that could cause actual results or events to differ
 materially from those in such forward-looking statements.  Potential risks and
 uncertainties include, without limitation, the success of our sales and
 marketing efforts, our ability to train physicians and educate patients on the
 benefits of our products and the procedures in which they are used, obtaining
 regulatory clearance for the treatment of pediatric tonsils, and those risks
 and uncertainties set forth in our latest annual report on Form 10-K filed
 with the Securities and Exchange Commission.  Copies of the annual report on
 Form 10-K are available by calling Kay Hendrix, at 408-617-3499.
     Somnus is headquartered in Sunnyvale, Calif., and its stock is traded on
 the Nasdaq National Market System under the symbol SOMN.  The company's Web
 site addresses are http://www.somnus.com and http://www.somnoplasty.com.
     NOTE:  Somnus, Somnoplasty and the Somnus Medical Technologies logo are
 registered trademarks or service marks of Somnus Medical Technologies, Inc.
 Patents pending.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X61665383
 
 SOURCE  Somnus Medical Technologies, Inc.

RELATED LINKS

http://www.somnus.com