RAMAT GAN, Israel--(BUSINESS WIRE)--"EarlySense", an Israeli company developing a monitoring system for the improved care of Asthma, COPD and Congestive Heart Failure patients, has announced today the closing of a $3 Million second round of financing. This round was led by the Etgar Challenge Fund joined by the ProSeed Venture Capital Fund private investors. To date, the company had raised about $1.25 Million U.S. Dollars in two rounds: the seed round in 2004 from private investors and a first round from the Challenge Fund in 2005.

 Avner Halperin, EarlySense co-founder and CEO said today: "Early identification of chronic disease deterioration is the missing link in improving the outcomes of hundreds of millions of chronic patients across the globe. EarlySense provides an early warning for chronic disease deterioration, enabling patient to get therapy, just in time.

We would like to thank our shareholders, notably the Challenge Fund for their vote of confidence in the company, and we welcome the new support from ProSeed VC Fund. This financing round will allow us to accomplish two significant milestones: submitting our system for FDA approval to and making first system installations in the USA."

Yossi Vinitski, a managing partner at the Etgar Challenge Fund and a member of EarlySense's Board of Directors: "We are excited by the impressive progress the company has made during the year that has passed since the first investment done by the Challenge Fund. The new capital will accelerate the process of getting the product into the market and partnering with key market leaders."

About EarlySense

EarlySense was founded about two years ago by Avner Halperin, a former Vice President at Radcom and Lenslet, Yossi Gross, a serial medical-device entrepreneur, Guy Shinar, former CEO of X-Technologies and Dr. Danny Lange who founded IDesia and Algodyne.

The company developed a monitoring system focused on improving the care of Asthma, COPD and Congestive Heart Failure patients. The system operates without any contact with the patient's body and without the need for patient compliance. It analyzes breathing and heart rate patterns during sleep and identifies early warning signs of the deterioration of these diseases. When deterioration is identified -- normally one to two nights before the patient is aware -- the system alerts and enables therapy to be given immediately -- at a point when the full attack can often be stopped and hospitalization prevented. A few weeks ago the U.S. Patent Office granted the company a wide ranging patent which covers the system's application for several chronic conditions. For more information: www.earlysense.com.

About the Etgar Challenge Fund

The Etgar Venture Capital Group (www.challenge.co.il) was founded in 1995 by Mr. Joseph Ciechanover. Today Etgar manages over $200 in capital in two funds, and is one of the largest and the most active VCs in Israel in the fields of communications, software, hardware, internet infrastructure and life sciences.

Ever since the the Challenge Funds was founded, it invested in over 70 companies and projects, of which 23 companies went public or were acquired by international firms. Among the Challenge Fund's previous investments were Coppergate, FlashNetworks, Expand Networks, Interwise, Storage Networking Technologies, Voltaire, EarlySense, Sol-Gel, and more. During the past three years, the Challenge Fund has made several successful exits including X-Technologies, which was sold to Guidant, PowerDsine (NASDAQ:PDSN - News) and M-Systems (NASDAQ:FLSH - News).

About ProSeed Venture Capital Fund

ProSeed Venture Capital Fund is a public firm, traded on the Tel Aviv stock exchange focusing on early stage investment in technology and life science. The fund is considered one of the leading VCs in the seed stage investment market. As part of the fund's focus on this area, the fund is one of the main shareholders of the Technion Incubator. The fund has holdings, directly and indirectly, in a wide variety of high-tech companies involved in information technology (communication, software) and life sciences. The fund takes an active role in the development, management, strategy setting and marketing of most of its portfolio companies. For more information: www.proseed.co.il

Contact:

Triwaks Public Relations Ltd.
Shirley Puterman, 050-6443235

Source: EarlySense