SOURCE: CNS Response, Inc.

CNS Response, Inc.

February 18, 2009 15:20 ET

CNS Response Provides Update on Two Key Issues: Clinical Trial Progress and Private Placement

COSTA MESA, CA--(Marketwire - February 18, 2009) - CNS Response, Inc. (OTCBB: CNSO) today announced progress of the company's 120-patient clinical trial for treatment-resistant depression (TRD). CNS Response Chief Medical Officer Daniel Hoffman, MD stated, "The trial is approximately two-thirds enrolled and we expect the enrolment to accelerate, based on expanded recruitment efforts. Also, we would like to welcome McLean Hospital, an affiliate of Harvard Medical School, as a new study site, bringing our total number of study sites to fourteen," added Hoffman.

CNS Response also announced the beginning of a private placement financing, open to only investors meeting SEC defined qualification parameters. Funds from the private placement will be used for completion of the TRD clinical trial, communication of the trial's results, and to meet the needs of commercialization efforts now underway. Members of the CNS Response management team and board of directors are participating in the company's private placement.

"Along with members of our board of directors, we believe the data provided by this important trial will demonstrate to physicians, patients, insurers and investors our unique capability to improve and manage behavioral illness and its associated costs," said CNS Response CEO Len Brandt. "We plan to share the results with each of these constituents, focus the company squarely on building revenue, and deriving recognition of value for our shareholders."

According to Brandt, management and board members also will purchase, from time to time, shares of the company's common stock in the open market. "Despite the economic downturn and the crisis in the financial markets, we believe our share price is considerably undervalued," added Brandt.

The securities proposed to be sold by the company will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

About CNS Response

Today, most physicians are able to base treatment on objective test data, such as EKGs, MRIs, blood tests, etc. Broadly speaking, such advances have not yet come to those physicians practicing psychiatry.

CNS Response has developed a patented data-analysis capability that, with the help of a simple, non-invasive EEG, will analyze a patient's brain waves and compare the results to an extensive patient outcomes database. The process produces an rEEG® report providing a psychiatrist with guidance to personalize a medication regimen for a patient, based on the patient's own physiology. To read more about the benefits this patented technology provides physicians, patients and insurers, please visit the CNS Response website, www.cnsresponse.com.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

Except for the historical information contained herein, the matters discussed are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements involve risks and uncertainties as set forth in the Company's filings with the Securities and Exchange Commission. These risks and uncertainties could cause actual results to differ materially from any forward-looking statements made herein.

Contact Information

  • Contact:
    Investor and Media Relations:
    Marty Tullio
    Managing Partner
    McCloud Communications LLC
    949.553.9748
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