Reduced Trial-and-Error Medication Prescribing for Mental Health Treatment Indicated by CNS Response Payer Analysis

ALISO VIEJO, CA--(Marketwire - August 12, 2011) - CNS Response, Inc. (OTCBB: CNSO) today announced topline results from an analysis of physician reports and health records for a high-volume managed care psychiatric clinic which services several of the nation’s largest managed care networks. The initial analysis of 128 records of patients treated for mental health conditions from 2003 to mid-2011 represents cases in which physicians received PEER Outcome Reports™ for their patients. The analysis found that physicians who had access to PEER Outcomes reported reduced trial-and-error pharmacotherapy. Among the findings:

• 16 patients, or 13 percent, actually required no medications at all.

Of the remaining 112 patients who required medications, when their physicians had access to the PEER Outcome Report:

• 88 percent of the patients achieved “much improved” or “very much improved” health outcomes.
  
• 64 percent of the patients achieved Maximum Medical Improvement (MMI) in an average of three visits.
  
• Out of 25 patients who had reported suicidality preceding their PEER Outcome Report, none reported suicidal thoughts in the period up to MMI. The patients were followed for an average of 825 days; during that time, three of the 25 developed suicidality (two patients had suicidal thoughts and one patient attempted suicide).
  
• Out of 22 patients who had experienced a severe adverse event on their previous medications, 13 of those patients (59 percent) had PEER Outcome Reports which indicated poor outcomes for those medications in patients with similar EEG findings. After physicians used the PEER Outcome Report, none of the patients had a severe adverse event on their new medications.
  

In addition to the initial payer analysis, CNS Response also announced that:

• a detailed technology assessment of CNS Response’s Referenced-EEG^® (rEEG^®), the company’s original physician-developed database, was recently completed by OptumHealth, a unit of UnitedHealthcare, approving rEEG as an “Emerging Technology.” The Technology Assessment is now available online to registered United/OptumHealth network providers, and will be posted to www.ubhonline.com/html/clinResources.html on August 26. It also will be available in the physician section of www.cnsresponse.com.
  
• since January 1, 2010, the company has received 313 physician rating reports, with 94 percent of physicians indicating the information provided through the PEER Outcome Report was “helpful” and 47 percent indicating the information was “essential” in treating their patients.
  

The PEER Outcome Reports are generated through the Psychiatric EEG Evaluation Registry, or PEER Online™, CNS Response’s cloud-based platform that allows physicians to exchange outcome data referenced to their patients’ neurophysiology. The registry enables physicians to compare and learn which medication treatments have been effective, and which have not been effective for their peers treating patients with similar EEGs. This collection of shared physician experience builds on the company’s original physician-developed database, Referenced-EEG® (rEEG®).

“In the medical field, especially in the field of psychiatry, it is patient outcomes that matter the most,” said CNS Response’s Chief Medical Officer Daniel Hoffman, M.D. “Based on our initial payer analysis, these are significantly better patient results than ‘treatment as usual.’

“Medical professionals helped develop the PEER Outcome Report as an information tool for continuous quality improvement,” said Hoffman. “Since medications can have both positive and negative effects, having a tool that supports physician decision-making and helps reduce patient exposure to medications that may be ineffective for them -- and, in some cases, could be harmful to them -- is a critical breakthrough, for payers, for patients and their families, for psychiatrists and family practitioners, for employers and for pharmaceutical companies. We’re pleased to see these preliminary results and expect to present the full results later this year.”

“These results were achieved by physicians, not a report,” said George Carpenter, CNS Response CEO. “It’s a basic principle of medicine that physicians who exchange outcome information achieve better -- sometimes dramatically better -- results than those who don’t. This core principle is driving adoption of electronic health records through the HITECH Act, the development of physician outcome registries under AHRQ, and the pay-for-performance incentives under Medicare.”

“We’re encouraged to see the practical results of this information in managed care,” added Carpenter. “And we’re gratified to see that sometimes -- 13 percent of the time in this study -- the best medication for patients may be no medication at all.”

About CNS Response
CNS Response provides reference data and analytic tools for clinicians and researchers in psychiatry. While treatment for mental disorders has doubled in the last 20 years, it is estimated that 17 million Americans have failed two or more medication therapies for their mental disorder. The company recently launched the Psychiatric EEG Evaluation Registry, or PEER Online™, a new registry and reporting platform that allows medical professionals to exchange treatment outcome data for patients referenced to objective neurophysiology data obtained through an EEG. PEER Online builds on the company’s original physician-developed database, Referenced-EEG® (rEEG®). Avoiding trial and error pharmacotherapy, the dominant approach for psychiatric treatment, is the objective of PEER Online™.

To read more about the benefits of this patented technology for patients, physicians and payers, please visit www.cnsresponse.com. Medical professionals interested in learning more can contact CNS Response at PEERinfo@cnsresponse.com.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
Except for the historical information contained herein, the matters discussed are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements involve risks and uncertainties as set forth in the Company’s filings with the Securities and Exchange Commission. These risks and uncertainties could cause actual results to differ materially from any forward-looking statements made herein.