ARGOMET GETS ADDITIONAL $7 MILLION FOR THERMOFLEX ROLL-OUT.

ArgoMed Inc., Morrisville, N.C., a medical device company dedicated to developing minimally invasive devices for the treatment of urological disorders including benign prostatic hyperplasia (BPH), has secured an additional $7 million in a private equity round. Led by Research Triangle Park venture firm, A. M. Pappas & Associates, investors included several firms from previous financing rounds such as Venrock Associates (New York, California), Oxford Bioscience Partners (Boston) and Global Life Sciences (United Kingdom, Germany), as well as Abbingworth Management Ltd. (United Kingdom) and Future Capital (Germany). ArgoMed will use the capital for continued corporate growth and marketing initiatives to support increasing demand for the Thermoflex(tm) System, a new, effective, and low-cost treatment option for the millions of men with BPH, as well as to support additional clinical trials.

This new infusion of capital comes only months after ArgoMed raised $3 million in a private equity round, and launched its Thermoflex System in the U.S. The additional $7 million, plus the previous $3 million closes the round and brings the total Series "C-D" funding to $10 million.

The Thermoflex System is the first and only product in the U.S. that utilizes water-induced thermotherapy (WIT), a safe and effective minimally invasive treatment for BPH. In the sedation-free WIT procedure, water is heated to precise temperatures and circulated through a proprietary catheter positioned in the prostate, thereby destroying obstructive prostatic tissue. Since receiving U.S. FDA approval for the Thermoflex System last August, ArgoMed has been working with urologists and leading medical centers to make this technology available to patients. The result is a network of Centers of Excellence where men with BPH are treated with the Thermoflex System. Initially focusing on the East Coast, ArgoMed plans to expand implementation of its product nationwide within the next two years.

"The continued support that we have received from a core group of venture capital firms validates our approach and the strength of our management team," said Richard B. Klein, President and CEO of ArgoMed. "This round of funding will help us to increase our vigorous marketing initiatives and expand U.S. market awareness for ArgoMed's water-induced thermotherapy (WIT) technique."

International venture development company, A. M. Pappas & Associates, led the Series "C-D" Preferred Stock financing.

"We are pleased with ArgoMed's continued progress and are committed to provide the company with the support it needs to be successful," said Art Pappas, chairman and CEO of A. M. Pappas & Associates. "The demand for high-quality, cost-effective treatment alternatives for BPH is increasing, and we feel that ArgoMed is ideally poised to meet these demands."

This year alone, nearly $1 billion will be spent on therapeutic medical products and procedures to treat BPH. With "baby boomers" now entering their fifties -- the age when symptoms of prostatic enlargement most frequently begin to appear -- the number of men afflicted with this condition will grow significantly. In fact, eight out of ten men will, at some time in their lives, develop symptoms of BPH.

Symptoms commonly associated with BPH include the inability to completely empty the bladder, urinary urgency, and the need to urinate frequently. Carefully monitored clinical studies indicate that the Thermoflex System results in significant improvement of urinary flow rate. Patients also report a corresponding increase in the quality of their lives after undergoing WIT.

ArgoMed Inc. develops, manufactures and markets minimally invasive thermotherapy technologies to treat BPH and other urologic disorders. The company has developed the Thermoflex(tm) System, a non-surgical, anesthesia-free catheter-based therapy that uses a proprietary technology for the treatment of BPH. The Thermoflex System is currently available in select East Coast cities and has been sold in Europe since mid-1998. To date, more than 1,000 patients have been treated with the Thermoflex System. ArgoMed's corporate offices are in the Research Triangle Park area of North Carolina and the European sales office is based in Hamburg, Germany. An engineering and manufacturing subsidiary is located in Herzilia, Israel.

To receive further details, contact ArgoMed Inc. directly at 919/469-2340, email to [e-mail] or send correspondence to 3800 Gateway Centre Boulevard, Suite 308, Morrisville, NC 27560.