THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Natus Medical Incorporated (BABY)

5/1/2006 Proxy Information

Other than the relationships described below, and in the sections entitled “Director Compensation,” “Executive Compensation” and “Employment, Severance and Change of Control Agreements,” since January 1, 2005, there has not been, nor is there currently proposed, any transaction or series of similar transactions to which we or any of our subsidiaries were or will be a party in which the amount involved exceeded or will exceed $60,000 and in which any director, executive officer, holder of more than 5% of our common stock or any member of his or her immediate family had or will have a direct or indirect material interest.

In anticipation of our acquisition of Bio-logic Systems Corp., we entered into a Common Stock Purchase Agreement with the D3 Family Funds wherein we agreed to sell 600,000 shares of our common stock in a private placement to the D3 Family Funds for $11.88 per share, the current trading price for the shares at the time that the Company and the D3 Family Funds agreed in principle to such sale. We granted certain piggyback registration rights in connection with the 600,000 shares issued in the private placement. We completed this sale on October 18, 2005.