Colorado MEDtech, Inc. Announces Manufacturing Contract.

Business/Health Editors

BOULDER, Colo.--(BW HealthWire)--Jan. 16, 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 signed a one-year agreement with ETHICON to manufacture several different medical devices, accessories and spare parts.

Colorado MEDtech will also provide sustaining engineering support for the products.

"We have long valued our relationship with ETHICON and are pleased to enter into this manufacturing arrangement for 2002," said Stephen K. Onody, CEO and Chairman. "We are looking forward to providing ETHICON with high-quality contract engineering and manufacturing services this year and in the future."

Colorado MEDtech, Inc. is a leading 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.

ETHICON, INC., a Johnson & Johnson company, is a global medical device company that develops and markets products for wound management, women's health, orthopedic/sports medicine and cardiovascular surgery.

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 the customer may not give the Company any orders after the current contract expires, 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.