BEI Medical Signs Distribution Agreement for Southeast.

Business/Medical Editors

TETERBORO, N.J.--(BUSINESS WIRE)--June 22, 2001

BEI Medical Systems, Inc. (NASDAQ: BMED), which received U.S. Food and Drug Administration approval on April 20 to market its Hydro ThermAblator(R), or HTA(R), announced today that it has signed an exclusive distribution agreement for the Southeast U.S. with Adler Instrument Company, a well-established gynecological products distributor based in Norcross, Georgia.

Adler is the first group of independent field representatives chosen by BEI Medical to market the HTA as the company establishes a nationwide distribution network.

Under the agreement, 19 Adler sales representatives will introduce the HTA to a large market of gynecologists covering Florida, Georgia, South Carolina, North Carolina, Alabama, Tennessee and portions of Virginia. Each member of the sales-representative group specializes in the sale of gynecological products.

The HTA is a proprietary, minimally invasive system for treating menorrhagia, or dysfunctional menstrual bleeding. Used to perform endometrial ablation, which destroys all or most of the endometrium, the lining of the uterus and the source of menstrual bleeding, the treatment can be performed by a gynecologist on an outpatient basis in approximately half an hour.

"This is a very effective way to reach our target market and jump-start our sales program," said Richard Turner, CEO of BEI Medical. "Signing Adler Instrument Company as our first distributor is directly in sync with our overall sales strategy of engaging on an exclusive basis with selected distributors to quickly and effectively blanket the United States, region by region. We look forward to a vigorous and successful sales effort."

"Our field sales force is eager to add BEI's HTA to our existing gynecological product line," said Robert E. Davis, Adler's president. "With our experience and well-established presence in the Southeast, we are confident that this agreement will produce a win-win for both companies."

About BEI Medical Systems

BEI Medical Systems Company, Inc., is a company focused on gynecology. The company has received approval from the FDA to market in the United States its sole product, the Hydro ThermAblator (HTA), a proprietary system that is intended to treat menorrhagia, or dysfunctional uterine bleeding. BEI Medical Systems(R), Hydro ThermAblator(R) and HTA(R) are registered trademarks of BEI Medical Systems Company, Inc., in the United States and certain foreign countries. For more information, please visit the company's web site at www.beimedical.com.

About Adler Instrument Company

Adler Instrument Company has specialized in bringing innovative surgical instrumentation, devices and capital equipment to the medical community for 20 years. Adler is committed to providing superior value by representing the highest quality products and services available. Adler sales consultants are trained to answer questions and help solve many of the problems that confront doctors in the operating room. For more information, please visit the company's web site at www.adlerinstrumentco.com. Except for historical information, this news release may be deemed to contain forward-looking statements that involve risks and uncertainties, including statements with respect to: acceptance and pricing of the HTA system; the impact of competitive products and pricing; the company's ability to raise additional capital on terms favorable to the company, or at all; and general economic conditions as they affect BEI Medical's customers, as well as other risks detailed from time to time in the company's reports to the Securities and Exchange Commission, including the company's Form 10-K annual report.