Hemedex, Inc. Announces Alliance With The Anspach Effort, Inc. to Market Its Tissue Perfusion Monitor.

Business Editors & Health/Medical Writers

CAMBRIDGE, Mass.--(BUSINESS WIRE)--Sept. 19, 2002

Hemedex, Inc., announced today that it has signed a multi-year agreement with The Anspach Effort, Inc. (Palm Beach Gardens, FL) to market its Bowman Perfusion Monitor(TM), Model 500 to neurosurgeons in global markets outside Asia. The Bowman Perfusion Monitor, Model 500, which was developed to provide clinicians a powerful prognostic tool by quantifying tissue blood flow (i.e., "perfusion") in continuous, real time, and absolute units was recently granted FDA clearance.

Hemedex, Inc., a privately held company, designs, develops and markets tissue perfusion-measuring devices that address unmet clinical needs in numerous critical medical and surgical situations. The Bowman Perfusion Monitor, Model 500, is the first commercially available device that monitors tissue blood flow continuously at the capillary level in real- time and absolute units of ml/100g-min. The perfusion-monitoring device utilizes a proprietary thermal diffusion technology through its minimally invasive, QFlow 500 Probe, which physicians can implant in cerebral, or any other, soft tissue.

The Anspach Effort, Inc., founded by orthopedic surgeon William E. Anspach, Jr., M.D. in 1978, is the global market leader in providing high performance instrument systems and related products to the neurosurgery, neurotology, orthopedic and otolaryngology markets. Charles McGarrity, Anspach President of Global Business Development, stated: "We are very excited about the clinical value and market potential of the Hemedex Bowman Perfusion Monitor, and we will begin immediately to leverage our network of independent distributors in the U.S. and abroad to introduce this technology to our customers. We will implement the market launch of the Bowman Perfusion Monitor at the upcoming Congress of Neurological Surgeons' meeting next week in Philadelphia, PA."

According to H. Frederick Bowman, Ph.D, Hemedex Chairman and CEO, "The measurements made by the Company's technology are a long sought after and important parameter in understanding and managing many critical clinical situations, and prior to the development of our technology, the capability to get continuous, real-time, soft tissue perfusion measurements in absolute units did not exist. The high clinical value of our platform technology has been well documented in life-saving neurosurgical and organ transplantation surgery cases, among others. We are very pleased that a company of Anspach's caliber appreciates the potential of our technology, and has committed their significant marketing, sales and distribution resources behind it."

One application of the Bowman Perfusion Monitor is monitoring cerebral blood flow in patients with traumatic brain injury to help identify those at risk for secondary ischemic injury to the brain. Approximately 370,000 Americans suffer a traumatic head injury annually. By using the Bowman Perfusion Monitor to measure continuous, real-time cerebral tissue blood flow, clinicians can identify patients at risk from ischemia due to cerebral edema (brain swelling), and measure patient tissue blood flow response to therapies implemented to correct the pathology. In addition, other critical neurosurgical interventions where clinicians currently employ Anspach devices and products, such as aneurysm procedures and procedures to relieve patients suffering subarachnoid hemorrhage, will also benefit from the valuable prognostic data provided by the Hemedex technology.

The potential market for tissue perfusion measuring devices is estimated by Hemedex to include millions of annual procedures, globally, and its alliance with The Anspach Effort, Inc. establishes the company's first distribution channel in addressing the neurosurgical market segment. In addition, according to William Reed, Hemedex Vice Chairman: "Hemedex seeks to form partnerships with other segment leading healthcare companies that have critical mass in different target markets, and where its perfusion monitoring technology can bring high clinical benefits that have the potential to improve patient outcomes while lowering overall costs."

About Hemedex, Inc.

Hemedex, Inc., located in Cambridge, Massachusetts, is a vertically integrated medical device company that designs, develops and markets minimally invasive, perfusion-measuring devices that address critical medical problems in areas that include neurosurgical monitoring, organ transplantation, cardiovascular monitoring and reconstructive surgery, among others. Hemedex's products are based on a proprietary, platform perfusion quantification technology, licensed from Thermal Technologies, Inc. of Cambridge, MA, which was developed with funding from the National Institutes of Health (NIH).