Computer Motion Awarded $2 Million to Advance Surgical Robotics in Telemedicine in ``Advanced Technology Program'' Competition.

Business Editors & Health/Medical Writers

National Institute of Standards and Technology (NIST)

Selects Computer Motion to Pursue Innovative Research

in Tele-Collaborative Surgical Training

SANTA BARBARA, Calif.--(BW HealthWire)--Nov. 1, 2001

Computer Motion, Inc. (Nasdaq:RBOT), the world's leading developer of surgical robotic systems, today announced that it has been awarded a $2,000,000 research and development grant from the Department of Commerce, National Institute of Standards (NIST), Advanced Technology Program 2001 competition.

Computer Motion selected Dr. Peter Schulam of UCLA School of Medicine, Dr. Ranjan Mukherjee of Michigan State University, and Dr. Steven Butner of University of California at Santa Barbara, to collaborate on the development project that will combine surgical robotic systems with telemedicine to allow expert surgeons to closely guide in-training surgeons through complex minimally invasive surgical procedures.

The proposed system is based on the integration of four of Computer Motion's FDA cleared robotic surgical systems and features the ZEUS(R) system modified to include two identical surgeon consoles with shared control of a single set of "arms" that are used to operate on the patient. Other significant developments to the system include "haptic" feedback so that in-training surgeons can actually feel their mentor's actions through the console controls and experience surgery through the hands of an expert. In September 2001, a specially modified non-FDA cleared ZEUS(R) system performed the world's first transatlantic telesurgery. The system was used by surgeons operating from a console in New York to remove the gallbladder of a patient located in France.

Yulun Wang, Ph.D., Founder and Chief Technical Officer of Computer Motion and principal investigator of the grant stated, "Computer Motion has always believed that the development of a broad-base of products that offer many benefits to our customers is of fundamental importance in creating a successful business." Dr. Wang continued, "We also believe that by combining forces with leading researchers at institutions like UCLA, UCSB, and Michigan State University, who will be working with us on this exciting project, we will be able to accelerate the speed with which we can drive new product research and development."

The title of the grant is "A New Concept for Minimally Invasive Surgical Training Using Robotics and Tele-Collaboration." The NIST Advanced Technology Program (ATP) is a unique program whose purpose is to accelerate the development of innovative technologies that promise significant commercial payoffs and widespread benefits for the nation. As stated in the NIST grant proposal, the potential market opportunity for tele-collaboration in medicine and surgery exceeds one billion dollars per year.

Dr. Peter Schulam, chief of the division of endourology and laparoscopy at UCLA Medical Center and the lead clinical investigator of the grant said, "Less invasive surgery brings significant benefits to patients including faster recovery times and reduced pain and trauma. However, the demand for surgeon training far outpaces the time that experts have to train surgeons in these new procedures." Dr. Schulam continued, "The shared-control robotic system to be developed with this grant will let experts give the fundamental physical interaction, that is critical for training, to more surgeons while eliminating the demand of travel time on their schedules."

Ranjan Mukherjee, Ph.D., Associate Professor at Michigan State University said, "Our NIST/ATP grant will give us the opportunity to develop a unique and novel robotic platform for telesurgical training and education," Dr. Mukherjee continued, "Using our novel control algorithm, two surgeons will be able to collaborate on a surgical procedure with shared and programmable control authority.

This will represent a new paradigm in telesurgery with force feedback."

Steven E. Butner, Ph.D., Professor of Electrical & Computer Engineering at University of California Santa Barbara said, "This project is poised to make fundamental contributions in the teaching and mentoring of minimally invasive surgical techniques. The availability of equipment that will facilitate cooperation between student and mentor surgeons could revolutionize the way surgeons develop and learn new MIS procedures."

Computer Motion is a high-tech medical device company evolving surgical practices to enhance patient lives. The company develops, manufactures and markets proprietary computer-enhanced and robotic surgical systems that enhance surgeons' capabilities, improve patient outcomes and reduce costs. Computer Motion plays a significant role in transitioning the surgical community from current open procedures to endoscopic procedures that are less painful and traumatic to the patient. Computer Motion's products include the FDA cleared ZEUS(R) robotic system for new minimally invasive microsurgical procedures, and the FDA cleared HERMES(TM) Control Center, a centralized system that enables the surgeon to voice control a network of "smart" medical devices. The AESOP Robotic Endoscope Positioner is the first FDA-cleared surgical robot to be commercially available in the U.S. The company's newest product, the SOCRATES(TM) Telecollaboration System, is designed to facilitate surgeon collaboration using video and audio conferencing, shared control of the endoscopic camera, and video annotation on the surgical image in the operating room. The company's products are CE-Marked for commercial sale in the European Community. The company's Web site is www.ComputerMotion.com.

This news release contains forward-looking statements concerning the company's business and products. Actual results may differ materially depending on a number of risk factors, including the risks of competition and competing technologies, duration or suspension of clinical studies, regulatory clearances and approvals, and physician, hospital and payor acceptance of the company's products. These factors and other risks inherent in the company's business are described from time to time in the company's Securities and Exchange Commission filings, including its Annual Report on Form 10-K. The company undertakes no obligation to revise the forward-looking statements contained herein to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events.