Clarus Medical Systems, Inc., announces license and technology transfer agreements with Medtronic PS Medical.

MINNEAPOLIS--(BUSINESS WIRE)--May 22, 1997--Clarus Medical Systems, Inc., Minneapolis, Minnesota, today announced license and technology transfer agreements with Medtronic PS Medical in neurosurgery. Although details of the agreements were not released by either company, Dennis Sellke, Clarus Chairman and CEO said "These agreements confirm Clarus technology's value in new minimally invasive surgical (MIS) procedures.

Neurosurgery represented for Clarus a commercial model that has now demonstrated how a target MIS market can evolve in less than two years. The fact that Clarus penetrated over 70% of the US pediatric neurosurgery centers and that patient outcomes now being documented in the peer reviewed literature are improved, gives the company and our customers confidence similar conversions will take place in other fields of clinical use. This experience, coupled with our technology and broad FDA clearances, provides a uniquely complete offering, as we move forward in other fields of use.

All the credit goes to our employees who worked so hard to position us as the leader in neuro-endoscopy. We expect Medtronic PS Medical will continue to build the business and relationships with our former neurosurgeon customers and their peers. A new standard of care is emerging rapidly in this field enabled by fiber-optic endoscopy products.

Clarus will continue to develop its two remaining businesses:

--Original equipment manufacturing (OEM) for device companies with interests outside intracranial surgical procedures.

NOTE: Clarus has prototyped and/or quoted for production new products of interest to over 20 device companies in the last 18 months. Four agreements are now in place and additional contracts are in process.

--Proprietary LASE(TM) systems for minimally invasive treatment (under endoscopic control) of contained herniated discs in the low back.

NOTE: LASE(TM) patient outcomes have been documented and abstracts have been accepted for publication which demonstrate for the first time this least invasive therapy holds new promise for patients whose continued herniated disc problems remain unresolved after months of conservative treatment. An alternative to open surgical procedures, FDA-cleared LASE can be safely used under local anesthesia and patients are usually home within 24 hours.

Clarus, newly resourced via this agreement, is able to capitalize its future without dilution to current investors. Clarus looks forward to complete satisfaction of Medtronic PS Medical's interests and continued evolution of its own and will continue to count on its people to deliver our next level of success."

Clarus Medical Systems, Inc., a privately held company, is the world's leading supplier of fiber-optic endoscopy systems supporting minimally invasive approaches to improved patient outcomes.

Clarus Medical Systems, Inc., is headquarterd in Minneapolis, Minnesota and began operations in May 1987. Clarus has become a leader in the design, manufacture and marketing of small diameter fiber-optic endoscopes for use in minimally invasive surgical ("MIS") procedures. This expertise has been applied to Clarus' LASE(TM) product line and original equipment manufacturer ("OEM") products. Clarus has made a significant contribution with their pioneering efforts to combine small size, flexibility and state-of-the-art image quality for use in a variety of medical fields including neurosurgery, orthopedics, ENT, OB/GYN, anesthesia and airway management.

CONTACT: Dennis Sellke, Tom Barthel 612/525-8400