Prism Medical to raise funds for strategic acquisitions and to retire debt

Prism Medical Ltd. ("Prism") (PM:TSX-VEN) announced today that it has completed a non-brokered private placement of common shares (the "Private Placement") effective August 25, 2009.

Prism issued an aggregate of 350,118 common shares at a price of $6.00 per share raising gross proceeds of $2,100,708. The proceeds of the Private Placement will be used to fund strategic acquisitions, retire outstanding funded debt and general operations.

The common shares issued under the Private Placement are subject to a hold period of four months expiring on December 27, 2009.

The Private Placement was extended to directors, senior executives, employees and consultants of Prism and its subsidiaries in order to further its objectives of encouraging share ownership by these individuals and aligning their interests as a group and with the company. Some of these individuals borrowed all or a part of the subscription funds from HSBC Bank Canada or a related entity on normal banking terms. Prism has guaranteed these borrowings in order to facilitate the subscriptions.

Source: PRISM MEDICAL LTD.

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