Cell Robotics Issues Progress Report On Personal Lasette.

Health/Medical Writers

ALBUQUERQUE, N.M.--(BW HealthWire)--Feb. 7, 2000

Several Private Insurance Companies Have Paid for the Lasette

Patented Technology Offers Lancet-free, Nearly Painless Blood

Sampling to Well Over 100 Million Diabetics Worldwide

Cell Robotics' CEO Interviewed Online At &uot;America-iNvests.com&uot;

Cell Robotics International Inc. (OTCBB:CRII) today issued an update on its proprietary, breakthrough medical device designed for the 100 million diabetics worldwide.

Cell Robotics International is the only company offering a FDA-cleared alternative to the steel lancet or needle to enable diabetics to sample their blood as the first step in testing glucose levels to determine proper insulin dosing.

The company is the developer of the award-winning Lasette(R), a compact, portable laser skin perforator that allows nearly painless sampling of capillary blood without inducing residual soreness.

Cell Robotics entered the large market for diabetes home-use products when it initiated production, marketing, sales and shipment of the Personal Lasette in time to ship the first Personal Lasettes for Christmas. There are well over 10 million diagnosed diabetics in the U.S, approximately 4.7 million of whom must inject insulin every day to survive. The Personal Lasette eliminates the debilitating effects of needle phobia, while minimizing pain and long-term finger soreness.

&uot;We are especially pleased with customer acceptance of, and excitement about, the Personal Lasette,&uot; stated Ronald K. Lohrding, Ph.D., Cell Robotics president and CEO. &uot;We are particularly gratified by the personal testimonials from diabetics whose lives have been improved by this device.&uot;

Jim Collins, a long time diabetic who carefully manages his life with diabetes, and runs in marathon events in the United States and Europe, said this about the Personal Lasette: &uot;In addition to the reduced pain and the soreness of my fingers, I've found another benefit to using the Lasette: there is no residue or excess blood. The amount of blood that arises is so small that it can just be wiped away with no sign. This is great for discrete testing. It is amazing to see peoples' jaws drop when I say I use a laser beam to poke my finger. ... I love this Lasette! It makes me feel as if I am a magician.&uot;

Another user, a retired engineer in his 70s, said, &uot;I am thrilled! The Lasette is everything that you said it would be -- painless and no soreness.&uot;

&uot;In addition, we are particularly pleased that several large private insurance companies have agreed on an individual basis to pay for the Personal Lasette for their subscribers,&uot; Lohrding said. &uot;Also, Medicare has agreed to pay for a child's Lasette through an exception process. Many doctors make the point to insurance companies that with the Lasette, their patients will test glucose levels more often, keep blood sugars under better control and thus reduce costly side effects of diabetes.&uot;

&uot;We are gratified that several insurance companies are willing to pay the short term costs to provide for the long-term health of their subscribers. Frankly, this has happened sooner than we expected and helps validate the value of our technology. We will work with the insurance companies to release additional information on individual company coverage when the relationship becomes more formalized.&uot;

The Personal Lasette is of particular benefit to those patients, who greatly fear sticking a steel blade or needle into their fingers. It is estimated that between 10 and 33 percent of the diabetic population suffer from &uot;needle phobia.&uot; (a)(b)(c) An additional 20 percent of the diabetic population can be classified as needle-averse. Even diabetics who have no fear of needles dislike the pain caused by steel lancet sticks and the continual soreness in their fingertips caused by multiple daily finger sticks.

The potential market is enormous. If Cell Robotics sold a Personal Lasette and a year's supply of disposables to only 1 percent of the U.S. insulin-injecting diabetic population of 4.7 million people this would yield revenues of $55 million. If Cell Robotics achieved U.S. market penetration of 5 percent to 10 percent, the market size would be between $276 million and $552 million. By making a conservative assumption that the U.S. represents 40 percent of the world diabetic market, then at penetration rates of 1 percent, 5 percent and 10 percent, the world market would be $137 million, $687 million and $1.3 billion respectively.

Lohrding was recently interviewed by Dan Gruber on the &uot;CEO Says&uot; program of America-iNvests.com. This audio interview is available at the America invests Web site at www.americainvest.com/archives?action=content&nterfaceid=1384&d=56.

The company encountered some problems with the laser cavity and the laser rod coatings of these early units. However, these problems have since been solved by using a new vendor for laser rod coating and making other minor adjustments. The company is now ramping up manufacturing and has launched an advertising campaign to promote the product.

Information about the Lasette has found its way onto several diabetic Web sites and publications. The paid advertising and direct mailing started last week with an ad in &uot;Diabetes Interview.&uot; In March, additional advertisements will appear in &uot;Diabetic Forecast,&uot; &uot;Diabetes Self-Care&uot; and &uot;Diabetes Interview.&uot;

Additional information is available on the Cell Robotics Web site at http://www.cellrobotics.com, by e-mail at [e-mail], or by telephone at 505/343-1131. The Lasette may be purchased at 800/846-0590 Ext. 100 or via e-mail at [e-mail].

As a cautionary note to investors, certain matters discussed in this news release may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: changes in economic conditions, general competitive factors, the company's ability to execute its service and product sales plans and the risks described from time to time in the company's Securities and Exchange Commission filings.

(a)Pediatric News 32(12):36, 1998.

(b) Needle Phobia: A Neglected Diagnosis by James G. Hamilton, M.D. in the August, 1995 issue of &uot;The Journal of Family Practice.&uot; Vol. 41, No.2, pp. 169-175

(c) The Needle Phobia home page on the internet.