Clarus Medical Systems, Inc. Signs Financing Agreement With Transamerica.

MINNEAPOLIS--(BUSINESS WIRE)--Dec. 18, 1998--Clarus Medical Systems, Inc. today reported that the Company has signed a $2 million financing agreement with Transamerica Business Credit Corporation. "This credit line will provide working capital and enable Clarus to expand marketing efforts for its recently introduced minimally invasive spine surgery products," stated Judy Folsom, Chief Financial Officer.

Clarus is a world leader in the design, manufacture and marketing of minimally invasive medical products for spinal surgery. Clarus' LASE(TM) product has set the standard for miniaturization in percutaneous herniated disc therapy. With the recent introduction of two additional systems, Clarus offers the most comprehensive line of endoscopically enabled therapies for treatment of the lumbar spine. With its continuing development of less-invasive technology, Clarus is helping advance the standards of cost effective medical treatments.

Endoscopy allows many surgical procedures to be performed on an out-patient basis under local anesthetic with less trauma to the patient and accelerated recovery. Although primarily intended as a less-invasive, less-traumatic alternative to conventional surgeries, Clarus products often permit surgical intervention for individuals with medical histories or conditions that may eliminate them as candidates for conventional therapy.

Clarus' FDA cleared, spinal surgery product families

-- LASE(TM) An endoscopic system for percutaneous disc decompression

-- PercScope(TM) Reusable, percutaneous, working channel endoscopes

and instruments

-- SITEtrac(TM) Reusable, percutaneous, dilator and retractor system

enabling endoscopic solutions for most spinal pathologies

-- SITEprobe(TM) Reusable, intraoperative, atraumatic, malleable

diagnostic endoscopes

-- SpineScope(TM) Percutaneous endoscope for failed back syndrome 

therapy

-- SITElite(TM) Reusable, handheld, endoscope viewing system

"Clarus works with leading surgeons throughout the United States and Europe to research and advance the use of less-invasive surgery. This involvement and ongoing surgeon training allows Clarus to expand the efficacy and use of its products. The funds from this agreement will permit Clarus to expand its program of surgeon-to-surgeon training as we work to advance less-invasive therapy of the spine," said Clarus President and CEO, Tom Barthel. Transamerica Business Credit makes loans to many types of businesses for a variety of needs, including working capital, refinancing, restructuring, equipment financing and leveraged acquisitions. The company is a unit of Transamerica Commercial Finance Corporation, which is a subsidiary of San Francisco-based Transamerica Corporation, one of the world's largest financial services companies with assets of more than $50 billion.