IRIS Awarded Research Grant for Wavelet-Based Image Compression.

Business/Medical Editors

CHATSWORTH, Calif.--(BUSINESS WIRE)--July 9, 2001

International Remote Imaging Systems, Inc., also known as IRIS (AMEX: IRI), the world's leading manufacturer of urinalysis workstations, announced today that its Advanced Digital Imaging Research, LLC (ADIR) subsidiary has been awarded a Phase 1 Small Business Innovative Research Grant from the National Cancer Institute (NCI), one of the National Institutes of Health (NIH).

The project, entitled "Wavelet-Based AROS Compression of Cytogenetic Images," seeks to develop improved methods for compressing the data files that must be transmitted and stored to archive patient information.

"We were extremely excited about this award," stated Dr. Kenneth Castleman, President of ADIR. "This project expands the scope of our ongoing research into the very promising area of wavelet-based methods for digital imaging." Dr. John A. O'Malley, Chairman, President and Chief Executive Officer of IRIS, said, "The image compression software being developed by ADIR is applicable to a wide variety of problems that go far beyond cytogenetics and even beyond medicine. This is another example of our diversification of the ADIR subsidiary."

The $100,000 grant provides for a 12-month study to be carried out in collaboration with Dr. Zixiang Xiong of Texas A&M University, and Dr. Xiaolin Wu of the University of Western Ontario. Medical collaborators on the project are Dr. Janice Smith of DynaGene in Houston, Texas; Dr. Alan Lamb of Genzyme Genetics, in Santa Fe, New Mexico, and Dr. Ji Zhang of the University of Nebraska Medical Center in Omaha, Nebraska. Dr. Qiang Wu, Lead Research Engineer at the ADIR subsidiary of IRIS, is the Principal Investigator on the project.

Image compression has long been used in cytogenetics, as in other medical fields, to reduce the storage requirements for the large number of images that must be processed, transmitted, and stored for archival purposes. Lossless compression techniques have been used almost exclusively to prevent any possibility of image degradation. Lossy compression techniques, however, offer much more compact compression, and when properly used, do not introduce visible artifacts, even though the data is not preserved in exact form.

The image compression technique now being pioneered by ADIR makes use of the wavelet transform, a recently developed mathematical technique for decomposing an image into its components. Current research indicates that the wavelet transform is better suited for image compression than the techniques that have been used in the past. It can attain far superior compression ratios, whether the compression is lossy or lossless.

Further, the "Arbitrary Region of Support" (AROS) approach uses lossless compression on those parts of the image that are critical for diagnosis and a more efficient lossy compression technique on the image background. The result is much smaller data files that still preserve the details of the specimen that are essential to diagnosis.

IRIS designs, develops and markets patented and proprietary in vitro imaging systems for automating microscopic urinalysis procedures performed in hospitals and clinical laboratories using patented and proprietary technology that combines visual microscopy, digital image processing and automated image interpretation for analyzing specimens.

IRIS is a leader in automated urinalysis technology with more than 450 of its workstations installed in major medical institutions throughout the world. IRIS manufactures the only clinical analyzers using real-time video flow imaging, displaying microscopic images on a video screen; the systems are operated by touch screen interfaces pioneered by the Company for use in urinalysis. IRIS imaging systems use patented and proprietary automated intelligent microscopy (AIM) technology for automating microscopic procedures. IRIS enables clinical laboratory technologists to rapidly and efficiently analyze and process specimens automatically, significantly reducing the costly and time-consuming manual steps required for microscopic analysis.

Its StatSpin(R) subsidiary, acquired in 1996, excels as a maker of innovative centrifuges and blood analysis products. Thirty-five thousand of its micro centrifuge systems have been sold to date. More than 600 major medical institutions worldwide, along with thousands of smaller hospitals, commercial laboratories, clinics, doctors' offices, veterinary labs and research institutions use StatSpin's products. StatSpin manufactures the world's fastest blood separator (30 seconds). Its bench top centrifuges are dedicated to applications for manual specimen preparation for coagulation, cytology, hematology and urinalysis. StatSpin has been providing centrifuges to the veterinary market through a company which provides sample and analysis systems and recently shipped the 10,000th centrifuge to this market.

Its ADIR subsidiary, Advanced Digital Imaging Research, LLC, established in 2000, is a research and development organization based in the Houston, Texas area. ADIR assists in the advancement of IRIS' proprietary imaging technology while conducting government-sponsored research and development in medical imaging, and performing contract research and software development for corporate clients.

This news release contains forward-looking statements made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees of future performance and are inherently subject to uncertainties and other factors which could cause actual results to differ materially from the forward-looking statement. Such statements are based upon, among other things, assumptions made by, and information currently available to, management, including management's own knowledge and assessment of the Company's industry and competition. IRIS refers interested persons to its most recent Annual Report on Form 10-K and its other SEC filings for a description of additional uncertainties and factors which may affect forward-looking statements. The Company assumes no duty to update its forward-looking statements.