ADM Tronics and Nexim Corporation Sign Letter of Intent to Produce and Market Remote Cardiac Monitoring and Defibrillation System.

NORTHVALE, N.J.--(BUSINESS WIRE)--May 7, 1998--ADM Tronics Unlimited Inc. (NASDAQ:ADMT) and Nexim Corporation have entered into a letter of intent in connection with the production and marketing of the MDphone Remote Defibrillation and Cardiac Monitoring System.

The MDphone System is a remote telephonic cardiac monitor/defibrillator with an interactive base unit. Nexim has advised that MDphone is the only such system cleared for U.S. marketing that can rapidly communicate, aid diagnosis and remotely treat a person in a life-threatening, medical emergency.

Nexim estimates the worldwide market for emergency cardiac defibrillators and vital sign assessment devices to be nearly a half-billion dollars annually. The MDphone system, in contrast to other automatic defibrillators, allows a medical professional to remotely monitor and administer lifesaving cardiac defibrillation. Time is the most crucial factor impacting survival of a patient in cardiac arrest.

For example, the survival rate for ventricular fibrillation generally decreases from 70%, if treated within three minutes, to less than 5%, if treated after nine minutes. Average response time for emergency personnel, trained in the use of automatic defibrillators, is more than six to eight minutes. The Nexim MDphone System allows immediate, professional monitoring and medical management of the patient and, if necessary, defibrillation.

ADM Tronics will provide engineering, manufacturing and international marketing services for the MDphone System for which ADM Tronics will receive 5% of Nexim's common stock and an option to purchase an additional 5% of the common stock of Nexim subject to the satisfaction of certain conditions. In addition, three members of ADM Tronics' management will become officers of Nexim and ADM Tronics is entitled to have one designee on Nexim's Board of Directors. Several material terms of the proposed transaction have not yet been negotiated.

According to Andrew Jaloza, Nexim's Chairman, an association of ADM Tronics and Nexim "would place Nexim in a very stable growth environment and with very capable management. I feel confident that the joint efforts of ADM Tronics and Nexim could enable Nexim to capture a significant portion of the external defibrillator market."

ADM Tronics is a technology-based developer and manufacturer of a diversified line of products including patented, non-invasive therapeutic electronic medical devices; water-based, non-polluting recyclable chemical products used in food packaging, printing and related industries; and, innovative dermatological products.

CONTACT: ADM Tronics, Northvale

Andre Di Mino, 201/767-6040

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