Amicable Settlement Reached Between Axiom Worldwide and Adagen Medical!

TAMPA, Fla. -- Axiom Worldwide and Adagen Medical announce that an amicable settlement has been reached in litigation filed by the two companies in Georgia and Florida. For a number of years, Adagen has been a competitor of Axiom in the spinal decompression marketplace and has been a primary distributor of the Spina System, the Spina XP and the DavinciX10 all manufactured by North American Medical in Atlanta. Axiom and Adagen have set aside their differences and settled all of their claims against one another.

When Mr. Jim Gibson, President and CEO of Axiom, was asked about this sudden change in attitude between the two companies, he replied, "First of all, none of this is sudden. There has been an ongoing dialogue of conversations between various parties regarding a global settlement of all issues and not just those currently being litigated. Unfortunately some of them have been of a sincere nature and some of them have not. We [Axiom] recognize Terry and his fine company as respected competitors in this industry. His efforts to bring non-surgical spinal decompression to the forefront of awareness do not go unrecognized. His company has always anticipated changes in the market in advance of actual events. I don't wish to speak for Terry, but I think he realizes, as we do, that the current environment is of no benefit to either company or the industry as a whole that we mutually operate in. Much less and even more distracting is that we are being hindered in our ability to make these technologies available to patients."

Commenting on the settlement, Terry Harvey, President & CEO of Adagen explained that despite competitive differences, he always had a deep respect for Axiom and Jim Gibson. Mr. Harvey is proud of the fact that Adagen has been instrumental in bringing non-surgical spinal decompression to market. Mr. Harvey has been committed to bringing this technology to the mainstream and has personally witnessed the fact that spinal decompression devices truly do change the lives of people suffering with chronic low back pain. He went on to explain his view that no one is benefiting from the current environment except the attorneys. Adagen acknowledged that Axiom has made a substantial investment in clinical research to establish the efficacy of its technology. The parties desire that this settlement will not only advance the availability of the technology for patients that need it but also bring about a much needed cohesive approach to the spinal decompression industry.

The 2 lawsuits involved in the settlement are as follows:

* Axiom filed with the Thirteenth Judicial Circuit Court, in and for Hillsborough County, Florida, the action entitled Axiom v. Adagen Case No. 049669; Div. E, wherein claims and counterclaims were asserted by and between Axiom, Adagen and others (the "Florida Litigation");

* Adagen, among others, filed with the United States District Court for the Northern District of Georgia, the action entitled North American Medical Corporation and Adagen Medical International, Inc. v. Axiom Worldwide, Inc., James Gibson, Jr., Nicholas Exarhos, Ren Scott, et al., Case No. 1:06-CV-1678, wherein claims and counterclaims were asserted by and between Axiom, Adagen and others (the "Georgia Litigation").

Axiom and Adagen mutually desired to amicably resolve their respective claims in the Florida and Georgia Litigation as well as all existing and potential claims and disputes, without resorting to further legal proceedings. Additionally and of significant importance, is that the Parties to this settlement have mutually denied engaging in any unlawful or wrongful conduct and each denied any liability whatsoever. The particular terms and conditions of this settlement are strictly confidential. In closing, Axiom advised that customers and patients alike should stay tuned as more new and exciting industry developments are soon to be released.

About Axiom Worldwide

Axiom Worldwide manufactures and distributes its flagship products, the DRX9000 True Non-surgical Spinal Decompression System[TM], DRX9000C[TM], and DRX9500[TM] in medical markets around the globe. Axiom also manufactures an all-digital electroceutical device, the EPS8000[TM], for use in relieving pain and for use in muscular rehabilitation. Axiom prides itself on providing safe, non-surgical alternatives that patients should consider prior to undergoing surgery. For additional information on Axiom Worldwide, please visit www.AxiomWorldwide.com or contact Axiom Worldwide, 9423 Corporate Lake Drive, Tampa, FL 33634, telephone: [phone].