CardGuard Scientific Survival

(SWX:CARDG) is buying the majority of business assets owned by

Quality Diagnostic Services

, a wholly owned subsidiary of Matria Healthcare (Nasdaq:MATR). The deal is to be finalized on February 1.

Both Card Guard and QDS specialize in telemedicine systems and cardiac telemedicine monitoring equipment. Completion of the deal is due first of February 2001.

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QDS expects to report 2000 sales of $16.5 million and net income of $2 million. The Marietta, Georgia-based company has 140 employees.

Company president and CEO Yacov Geva said that CardGuard will broaden its activities in the cardiac monitoring market and will strengthen its position in the medical communication sector. Matria can tighten its focus on its core business, which is providing services for diabetics and pregnant women.

Geva added that the joint forces of QDS and cardiac monitoring service LifeWatch, bought by Cardguard in January 2000 for $11 million, will help the Israeli company become a major player in the United States healthcare market.

The purchase of QDS will boost the group's cardiac monitoring activity to $40 million, based on year 2000 figures.

Beyond cardiac monitoring services, CardGuard also develops and markets systems that connect between patient homes and clinics. The systems monitor cardiac and pulmonary conditions at the patient's home, and transmit the information to the doctor for analysis. This activity is carried out through CardGuard subsidiaries CardGuard and Instromedix, bought in August 2000 for $30 million.

CardGuard has subsidiaries in the United States, Europe, Brazil, Canada, and Japan. The company went public on the Swiss New Exchange in November 1999, raising $60 million. In October 2000 it completed a secondary offering bringing proceeds of $100 million. During the first nine months of 2000, CardGuard reported revenue of $33.3 million compared to $11.8 million for the whole of 1999.