CNS Response raises funds through private placement for general corporate purposes

CNS Response, Inc. (OTCBB: CNSO) (the "Company") today announced that it has completed a closing of its private placement, resulting in gross proceeds to the Company of approximately $2,000,000. The Company sold approximately 38 Units to six investors at a price of $54,000 per Unit, with each Unit consisting of 180,000 shares of the Company's Common Stock and a five-year, non-callable warrant to purchase 90,000 shares of the Company's Common Stock at an exercise price of $0.30 per share. The shares of common stock and warrants are immediately separable and will be issued separately.

Additionally, under the terms contained in the Company's three existing bridge note facilities aggregating $1,700,000, the bridge notes and accrued interest have been automatically converted into approximately 6,050,000 shares of the Company's common stock.

Proceeds from the transaction will be used for general corporate purposes, including clinical trial expenses, research and development expenses, and general and administrative expenses.

The Company also announced that Tommy Thompson and John Pappajohn have been appointed to the Board of Directors ("Board"). Mr. Thompson, the former Health and Human Services Secretary and four-term Governor of Wisconsin is a partner at the law firm of Akin Gump Strauss Hauer & Feld. He serves on the board of directors of two publicly-held companies, CR Bard and Centene Corporation, and is the Chairman of AGA Medical Corporation, a privately-held company. Mr. Thompson served as HHS Secretary from 2001 to 2005 and is one of the nation's leading advocates for the health and welfare of all Americans.

Mr. Pappajohn has, since 1969, been the President and owner of Pappajohn Capital Resources, a venture capital firm, and President and owner of Equity Dynamics, Inc., a financial consulting firm, both located in Des Moines, Iowa. He serves on the board of directors of a number of public companies, including American CareSource, PharmAthene, Spectrascience, CareGuide, Inc., (formerly Patient Infosystems, Inc.), and ConMed Healthcare Management.

"This private placement and the addition of Tommy Thompson and John Pappajohn to our Board represents a significant step forward for CNS Response," said George Carpenter, CNS Response CEO. "With the health care challenges being faced by patients and payers alike, we think the time has come for objective, personalized medicine in psychiatry. We intend to use these proceeds to expand our research and our commercial capability, with the ultimate goal of making referenced-EEG® the standard of care in treatment-resistant mental disorders."