Breathe Technologies Secures US$23 Million in Series C Financing

John Miclot elected chairman; FDA clearance received.

SAN RAMON, California, May 18, 2010 - Breathe Technologies, Inc., a manufacturer of innovative technology
solutions for people with respiratory conditions, including chronic
obstructive pulmonary disease and sleep apnea, announced today it has secured
US$23 million in Series C financing. The financing was led by DAG Ventures
and included Kleiner Perkins Caufield & Byers (KPCB), Delphi Ventures,
Synergy Partners International and Johnson & Johnson Development Corporation.
Additionally, industry leader John L. Miclot joined as chairman of the board,
and the company received FDA 510(k) clearance for its wearable ventilation
system.

"Our strong team of investors, the addition of John Miclot as chairman,
and recent FDA clearance further validate that Breathe is well positioned to
bring breakthrough solutions to the respiratory markets," said Gregory J.
Kapust, president and CEO of Breathe Technologies. "The Series C financing
will fund commercialization of Breathe's ultralight, mobile ventilation
system for the millions of people worldwide with breathing challenges, such
as COPD (chronic obstructive pulmonary disease). We will also continue
development of our novel solutions for the sleep-disordered breathing
market."

Chairman John Miclot, who was instrumental in building Respironics into a
global leader in the sleep and respiratory markets, believes there is an
extraordinary opportunity for innovation in the respiratory industry. "When I
was introduced to Breathe's products and development plans, it was clear this
company had great potential to dramatically alter this industry's landscape,"
stated Mr. Miclot, who became president and CEO of Respironics in 2003 and
led the company's US$5.2 billion sale to Philips in March 2008. He
subsequently served as CEO of Philips Home Healthcare Solutions and is
currently an executive-in-residence at Warburg Pincus, serving on the boards
of Wright Medical Group, ev3, and Dentsply.

"Breathe Technologies provides an opportunity to create new efficiencies
in today's healthcare markets and to improve quality of life for people with
COPD and sleep apnea worldwide," said Dr. Beth Seidenberg, partner at KPCB.
"Breathe continues to make significant progress, and we look forward to
working with the company as they introduce their portable and wearable
ventilation systems for people suffering with COPD."

About Breathe Technologies

Breathe Technologies, Inc., located in San Ramon, California, is a
developer and manufacturer of innovative medical technologies for treating
lung diseases and sleep-disordered breathing. The company was founded in
January 2005 and received FDA clearance for its first- and second-generation
ventilation devices, featuring the company's proprietary, open-airway
platform technology. For more information please visit
www.breathetechnologies.com.

Gregory J. Kapust, President and CEO of Breathe Technologies, Inc., +1-925-359-1505