Newcardio raises funds through private placement

NewCardio, Inc., (OTC Bulletin Board: NWCI) a cardiac diagnostic technology provider, today announced that it closed a private placement financing with institutional and other accredited investors, including members of NewCardio's management team and board of directors, who purchased over half of the offering. Gross proceeds of approximately $2.9 million were generated through the issuance of approximately 2,900 shares of a new Series C Convertible Preferred Stock at $1,000 per share and convertible into approximately 2.9 million common shares, together with approximately 2.9 million common stock purchase warrants having an exercise price per share of $1.20. The Benchmark Company LLC served as the placement agent, who engaged Hallmark Investments as a selected dealer in this transaction.

Branislav Vajdic, PhD, NewCardio's Chief Executive Officer, commented, "The successful completion of this transaction, despite the difficult economic conditions and the challenges small companies face in securing additional growth capital, demonstrates the confidence management, our board of directors, and these accredited investors have in NewCardio's platform technology and the opportunities in front of us."

The securities issued in the private placement are not registered under the United States Securities Act of 1933 or the securities laws of any other jurisdiction. Accordingly, these securities may not be sold by investors in the United States, except pursuant to an effective registration statement or an applicable exemption from the registration requirements. Transfer and other disposition of the Series C Convertible Preferred Stock and warrants are also subject to certain limitations that continue during months 7-12 after issuance, based on the trading price and volume of the Company's publicly traded common shares. For more detailed information on this financing, see the Company's Current Report on Form 8-K which will be filed with the Securities and Exchange Commission on or about September 15, 2009.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful.

In the last 90 days, NewCardio has experienced a series of successes in adoption by key industry players in the life science market, including a top-five largest pharmaceutical company. The Company has entered into three master services agreements for the integration of QTinno(TM) into product and service offerings of two top-five largest Contract Research Organizations (CROs) as well as a cardiac safety and clinical trials service provider. Management expects to formalize additional agreements as the industry begins to realize the benefits and potential of QTinno(TM) in advancing the current cardiac safety analysis approaches. This expectation is supported by positive feedback from a recent presentation of the QTinno(TM) technology and validation results with the FDA.