MediSystem Technologies Inc.
TSX : MDY

MediSystem Technologies Inc.

August 11, 2005 11:52 ET

MediSystem Technologies Inc. Announces Closing Of $6,775,000 Private Placement

TORONTO, ONTARIO--(CCNMatthews - Aug. 11, 2005) -

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED OR INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR PUBLICATION OR DISSEMINATION IN THE UNITED STATES, OR TO UNITED STATES PERSONS.

MediSystem Technologies Inc. (TSX:MDY) (the "Corporation") announced today that it has closed the previously-announced bought deal private placement of 2,463,636 common shares of the Corporation at an issue price of $2.75 per share for gross proceeds of approximately $6,775,000. The proceeds will be used by the Corporation for repayment of certain indebtedness and general working capital purposes. Versant Partners Inc., Sprott Securities Inc. and Paradigm Capital Inc. acted as underwriters for the transaction.

The securities issued pursuant to the offering will be subject to resale restrictions for a period of four months following completion of the offering.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless an exemption from such registration is available.

About Medisystem Technologies Inc.

The MediSystem Pharmacy unit of the company is an accredited pharmacy in Ontario whose principal activity is the distribution of pharmaceutical products to long-term care facilities through its proprietary automated multi-dose drug delivery system. MediSystem's proprietary software meets the specific billing requirements of the Ontario Ministry of Health; dispenses prescriptions on specific days of the week, even in partial doses; and allows changes to drug regimens within a seven-day dispensing cycle to save drug wastage.

MediSystem is a public company listed under the symbol "MDY" on the TSX.

The TSX has not reviewed the contents hereof and does not accept responsibility for the adequacy or accuracy of this release.

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