Colorado MEDtech, Inc. Announces Development Agreement With Genoptix.

Business/Health Editors & Technology Writers

BOULDER, Colo.--(BW HealthWire)--Feb. 4, 2002

Colorado MEDtech, Inc. (Nasdaq:CMED), a Boulder, Colorado-based provider of advanced medical technology outsourcing services and medical imaging system components and accessories, today announced that it has entered into an engineering design and development agreement with Genoptix, Inc., San Diego, California, to develop an instrument system incorporating Genoptix's proprietary Optophoresis(TM) technology for cell separation and analysis.

"Genoptix represents an important sector of the biotechnology community with unique ways of analyzing and isolating specific cells," said Stephen K. Onody, CEO and Chairman. "Their approach will help further developments in drug discovery by making the process more efficient, which ultimately benefits patients. We are pleased they have chosen us to assist them in their development efforts."

Colorado MEDtech, Inc. is the full-service OneSource OutSource(TM) provider of advanced medical technology outsourcing services, including device and disposables development, software, medical device connectivity, manufacturing, system components for medical imaging and ultrasound accessories.

Genoptix, Inc. (www.genoptix.com), headquartered in San Diego, Calif., has developed a unique technology capable of simultaneously analyzing and isolating specific cells based on their differences at the atomic level. The Company's proprietary Optophoresis(TM) Technology utilizes high-frequency light to determine a cell's Optophoretic Constant, a measure of its unique physiological state at the exact moment it is being analyzed, allowing researchers to simply and efficiently gather a wide range of information. The lasers employed by Genoptix are in the biologically compatible infrared wavelengths, allowing precise cell characterization and manipulation with little or no effect on the cell itself. Genoptix's technology is applicable in current well-established markets, including pharmaceutical research and drug discovery, as well as smaller but growing markets such as prenatal testing, tissue engineering, cell selection, infertility and stem cell isolation.

Forward-Looking Statements 

The statements in this press release that are not historical facts are forward-looking statements that represent management's beliefs and assumptions based on currently available information. Forward-looking statements can be identified by the use of words such as "believes," "intends," "estimates," "may," "will," "should," "anticipated," "expected" or comparable terminology or by discussions of strategy. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot assure that these expectations will prove to be correct. Such statements involve risks and uncertainties, including, but not limited to, the risk that the Company's existing level of orders may not be indicative of the level or trend of future orders, the risk that the Company may not successfully complete the work encompassed by current or future orders, the risk that unforeseen technical or production difficulties may adversely impact project timing and financial performance, the risk of an adverse result in pending or potential litigation, the risks associated with regulation by the Federal Food and Drug Administration, including compliance with the Quality System Regulation, the risk that acquired companies cannot be successfully integrated with the Company's existing operations, and the risk that a downturn in general economic conditions or customer budgets may adversely affect research and development and capital expenditure budgets of potential customers upon which the Company is dependent. Should one or more of these risks materialize (or the consequences of such a development worsen), or should the underlying assumptions prove incorrect, actual results could differ materially from those forecasted or expected. These factors are more fully described in the Company's documents filed from time to time with the Securities and Exchange Commission. The Company disclaims any intention or obligation to update publicly or revise such statements whether as a result of new information, future events or otherwise.