CardioComm Solutions Announces Completion of iMedical Sale Transaction and the Start of Software Development for Wearable GSM and Mobile Cardiac Telemetry ECG Monitoring

Toronto, ON / ACCESSWIRE / October 16, 2014 / CardioComm Solutions, Inc. EKG ("CardioComm Solutions" or the "Company") confirmed today that Toronto-based iMedical Innovations, Inc. ("IMED") has finalized due diligence reviews and that the series of agreements involving custom software development and royalty license fees executed on September 15th are now binding and in effect. The Company previously announced the agreements and the October 17th deadline for the agreements to be deemed binding in a September 23rd press release.

Terms of the agreements include an immediate, non-refundable royalty advance to CardioComm Solutions of US$250,000 and a further US$650,000 in non-recurring engineering ("NRE") fees associated with developing custom mobile cardiac telemetry ("MCT") ECG management software (the "Software") for exclusive use by IMED. The Software will be engineered to enable IMED and their GSM based, dry electrode, wearable ECG device (the "Device") to enter into the US-based MCT ECG monitoring services market. Following the launch of the IMED MCT monitoring business, CardioComm Solutions will also be provided an ECG Royalty Fee equal to a US$20 ECG cardio-scan fee payable on a per-patient basis which aggregate royalty fee is not to be less than US$150,000 on an annual basis. In addition to an immediate infusion of cash into the Company and a recurrent revenue stream, IMED will retain CardioComm Solutions as their preferred software engineering consultants for future enhancements.

CardioComm Solutions will continue to work with their established network of ECG monitoring device/sensor manufacturers to provide device agnostic ECG software solutions. During the term of the agreements CardioComm Solutions will not engage with organizations interested in developing dry electrode, wearable and GSM-based ECG devices.

The Company had reviewed other service-based remote cardiac monitoring business relationships and identified this per ECG recurrent fee business model as most likely to gain traction in a market estimated to see 6 million users of remote patient monitoring in the USA by 2016 (MarketsandMarkets, 2013). Work on the custom Software will commence immediately with the intent to complete Software and Device FDA filings within the 2015 calendar year.

To learn more about the CardioComm Solutions' software products please see the Company's website www.cardiocommsolutions.com.

About CardioComm Solutions

CardioComm Solutions' patented and proprietary technology is used in products for recording, viewing, analyzing and storing electrocardiograms (ECGs) for diagnosis and management of cardiac patients. Products are sold worldwide through a combination of an external distribution network and a North American-based sales team. The Company has earned the ISO 13485 certification, is HPB approved, HIPAA compliant, and has received FDA market clearance for its software devices. CardioComm Solutions, Inc. is headquartered in Toronto, Canada, with offices in Victoria, B.C.

For more information please contact investorrelations@cardiocommsolutions.com.

Forward-looking statements

This release may contain certain forward-looking statements and forward looking information with respect to the financial condition, results of operations and business of CardioComm Solutions and certain of the plans and objectives of CardioComm Solutions with respect to these items. Such statements and information reflect management's current beliefs and are based on information currently available to management. By their nature, forward-looking statements and forward-looking information involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements and forward-looking information.

In evaluating these statements, readers should: specifically consider risks discussed under the heading "Risk Factors" in the Company's 2013 Annual Information Form, available at www.sedar.com; not to place undue reliance on forward-looking statements and forward-looking information; be aware the Company does not assume any obligation to update the forward-looking statements and forward-looking information contained in this Annual Information Form other than as required by applicable laws (including without limitation Section 5.8(2) of National Instrument 51-102 (Continuous Disclosure Obligations).

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: CardioComm Solutions