Evaluation of a Breakthrough Computer-Assisted Colonoscopy System Presented at Digestive Disease Week 2005.

CHICAGO -- An evaluation of a new colonoscopy system, (the Navigator(TM) Endoscopy System), was presented at this week's 2005 Digestive Disease Week(R) (DDW) annual meeting. Developed by NeoGuide Systems Inc., the System is designed to enhance physician control of colonoscopes and to eliminate looping -- the fundamental limitation of colonoscopy.

Colorectal cancer (CRC) is the second leading cause of cancer deaths in the United States. Colonoscopy is the gold standard for CRC screening, allowing early detection and prevention of the disease.

When performing a conventional colonoscopy, the endoscopist advances the scope and controls a bendable tip. The remainder of the scope's insertion tube is not controlled. The colon has multiple curves and floats within the abdomen; therefore, as the endoscopist advances the tip through the colon, the scope pushes against the colon wall and stretches the colon and its surrounding tissue. As the endoscopist inserts the scope further, the tip does not advance. Instead, the scope pushes the colon, forming a large loop. This phenomenon, known as "looping," is responsible for the majority of patient pain in colonoscopy. Pain from looping leads to the need for sedation, with its associated expense and risks.

"Colonoscopy is one of the most frequently performed outpatient examinations. However, it is still technically challenging, largely due to unpredictable looping which has been demonstrated to occur in the majority of cases," said study lead investigator, Dr. Jacques Van Dam, Professor of Medicine, Stanford University School of Medicine. "We believe this device has the potential to have profound implications for colorectal cancer screening, and may thereby represent an important advance for public health."

Dr. Van Dam presented the results of simulated-use bench testing and in vivo animal studies. Compared to a conventional colonoscope in the bench studies, the Navigator Endoscopy System applied significantly less force to the colon wall at the sigmoid flexure, which is the primary location of looping in colonoscopy. The in vivo animal studies demonstrated the safety of the Navigator Endoscopy System, with no tissue damage or perforations associated with the System.

The Navigator Endoscopy System is designed to traverse the natural shape of the colon, based on the computerized map, so less force is applied to the colon wall, which could potentially eliminate or reduce significantly the incidence of looping. In addition, the System offers advanced capabilities and procedural features unavailable with conventional colonoscopes, including the ability to display a real-time three-dimensional map of the colon and the ability for physicians to mark the location of polyps on this map.

"Looping is the principal reason that many colonoscopy procedures are painful, time consuming, and difficult," said Amir Belson, M.D., president and co-founder of NeoGuide Systems Inc. "We believe that by addressing looping, the Navigator Endoscopy System has the potential to significantly increase the number of colonoscopies that endoscopists are able to perform, which will be particularly important as the demand for the procedure continues to grow."

The Navigator Endoscopy System is subject to U.S. FDA 510(k) review and is not available for sale. The company expects commercial availability of the product in 2006.

About NeoGuide Systems Inc.

NeoGuide Systems was founded in 2000 with the mission to transform the way endoscopic procedures are conducted. The company is developing platform technology designed to revolutionize the way physicians visualize and deliver therapies within the body. The company's first product offering, the Navigator Endoscopy System, is a breakthrough colonoscopy system that incorporates NeoGuide's proprietary Foresight(TM) computer-assisted technology. Representing a significant departure in the way colonoscopies are performed, the Navigator Endoscopy System offers physicians more control through advanced features. NeoGuide Systems is headquartered

in Los Gatos, Calif.

(C) 2005 NeoGuide Systems Inc.

NEOGUIDE, the NEOGUIDE logo, NAVIGATOR and FORESIGHT are trademarks of the company.

About Digestive Disease Week

Digestive Disease Week (DDW) is the largest international gathering of physicians, researchers and academics in the fields of gastroenterology, hepatology, endoscopy and gastrointestinal surgery. Jointly sponsored by the American Association for the Study of Liver Diseases (AASLD), the American Gastroenterological Association (AGA), the American Society for Gastrointestinal Endoscopy (ASGE) and the Society for Surgery of the Alimentary Tract (SSAT), DDW takes place May 14-19, 2005 in Chicago. The meeting showcases approximately 5,000 abstracts and hundreds of lectures on the latest advances in GI research, medicine and technology.