CDEX Announces Dallas Children's Medical Center Acceptance of ValiMed Impaired Clinician Solution.

ROCKVILLE, Md. & DALLAS -- ValiMed Solution Employs Advanced Technology to Validate Return of Controlled Substance from the Operating Room and Meets JCAHO Standards

CDEX announces full contractual acceptance by Dallas Children's Medical Center of the ValiMed Impaired Clinician Solution. This acceptance comes after a two month trial period during which time the Medical Center has been using and testing the ValiMed product.

Narcotic drug diversion has long been a problem for healthcare organizations. Many studies have documented that between 5-10% of anesthesiologists, nurses, and pharmacists have used this class of medications. Substitution of saline or water for narcotics is one of the ways healthcare clinicians with narcotic abuse problems use to obtain these medications. To date there has not been a comprehensive solution for detection of this type of diversion. CDEX's ValiMed solution offers a quick, cost effective, and simple way to validate a large percentage of narcotics that are returned to the pharmacy. ValiMed uses patent pending technology to validate in near real time the returned controlled substances from clinicians hospital-wide, including those working in operating rooms, nursing stations or satellite pharmacies. This can assist healthcare organizations in complying with JCAHO standards for validating waste of controlled substances.

"We are very pleased with the performance of the ValiMed product and our relationship with CDEX," said John Tourville, Director of Pharmacy Services for Children's Medical Center Dallas. "The technology is truly unique, spectral analysis enables us to insure that the returned syringes contain narcotics and not just water. The ValiMed footprint is small enough to fit in our OR satellite pharmacy and any pharmacy technician can perform the validation in seconds. We are in the process of launching a pilot on a nursing station which will eliminate the need for a nurse to obtain another nurse's co-signature when a narcotic is wasted. We believe we can show a significant nursing time savings and gain better narcotic control in the entire institution. Looking forward, we expect ValiMed to be expanded to validate IV medications before they are administered to the patient. Placing medication validation on the front end of the medication use process will help us achieve our goal of eliminating medication error." Tourville noted that use of ValiMed for pre-administration drug validation purposes may require additional testing of ValiMed products in compliance with applicable FDA and other legal requirements.

ValiMed's Impaired Clinician Solution, offers healthcare organizations the tools to validate returned controlled substances quickly, easily, and inexpensively. This can provide an early warning system to detect controlled substance substitutions and diversions before they become a problem. ValiMed is comprised of three distinct components: the instrument, a proprietary library of chemical "fingerprints", and proprietary process automation software. ValiMed's reporting capabilities can assist healthcare organizations in documenting compliance with the JCAHO standards for controlled substances.

"The Children's agreement is a testament of the value ValiMed offers to healthcare institutions. With the success of the two month trial period, CDEX has demonstrated our ability to deliver commercial products using our proprietary technology," said Malcolm Philips, CEO of CDEX. "The staff at Children's Hospital has affirmed the use of our technology in the controlled substance diversion problem set. We look forward to collaborating with Dr. Tourville on future solutions."

Children's Medical Center Dallas is licensed for 348 beds with 278 beds dedicated to general pediatric medicine and general surgery. It features a 60-bed critical care and cardiac intensive care unit, an 18-bed psychiatric unit, more than 50 outpatient clinics and a state-of-the-art emergency center designed specifically for children. The Children's Medical Center emergency center, designed specifically for children, is the one of busiest pediatric emergency rooms in the country, which accommodated more than 98,000 patients in 2003.

For more information, please visit www.childrens.com

ValiMed is one line of CDEX products for the healthcare market. CDEX is also developing products in other markets, including homeland security and brand protection. CDEX is a technology development company with headquarters in Rockville, Maryland and laboratories in Tucson, Arizona. For more information on the ValiMed line of products, please see www.ValiMed.com.

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