Innovative Medical Services Signs Contract to Provide Axenohl To Leading Korean Cosmetics Company.

Business Edtiors and Health/Medical Writers

SAN DIEGO--(BW HealthWire)--March 19, 2001

Dodo Cosmetics to Launch New Product Line featuring Antibacterial,

Acne-Fighting Ingredient

Innovative Medical Services (NASDAQ: PURE) today announced that the Company signed its first long-term contract for Axenohl(R).

Innovative Medical Services signed a five-year contract with Dodo & Company, a leading Korean cosmetics manufacturer and marketer. Dodo & Company is launching a revolutionary line of acne-fighting cosmetics containing Axen as its active ingredient. (Axen is the trade name for the use dilution Axenohl solution.) Under the terms of the contract, Dodo & Company will purchase approximately $1.2 million dollars of product from Innovative Medical Services over five years. In addition to the purchase price, Innovative Medical Services will receive a royalty on sales of the Axen-containing products. The Company anticipates that total revenues from the contract should exceed $5 Million over five years. Dodo & Company plans to begin purchasing product in May 2001 in preparation for the September launch of its new product line.

Chairman Y.S. Lim of Dodo Cosmetics stated, "Including Axenohl in our products gives Dodo a tremendous competitive edge. It is a highly effective product, and we are excited to provide this new antimicrobial technology to our customers."

Mitch Cohen, Innovative Medical Services' Vice President, Marketing, commented, "The agreement with Dodo & Company is certainly a milestone for IMS. Cosmetics is just one of literally hundreds of potential applications for Axenohl, and this contract represents the beginning of an exciting new era for the Company."

As announced earlier this month, the US Patent and Trademark Office issued US Patent Number 6,197,814 for Axenohl. Patent applications have been filed in more than 50 countries and regions. The Axenohl International Patent Application was published by the World Intellectual Property Organization on April 22, 1999 under publication number WO 99/18790.

Axenohl is a revolutionary antimicrobial technology that uses the biocidal properties of ionic silver to kill bacteria viruses and fungi. Axenohl's broad effectiveness works to prevent and treat infection, and, unlike traditional disinfectants, Axenohl is non-toxic and environmentally friendly. Potential applications for products containing Axenohl include municipal and point-of-use/point-of-entry water treatment, food processing, personal disinfecting retail products, and commercial and retail hard surface disinfecting products. In addition, this technology may prove to be revolutionary in the healthcare market for treatment of disease, including human and animal infections and wounds, and for disinfecting applications in hospitals, clinics, surgical centers, dental offices and other medical and health related facilities.

The disinfection efficacy of Axenohl has been well documented by independent testing laboratories. Axenohl eliminates the following test organism strains all within one minute and with 99.9999% efficacy (complete kill): Pseudomonas aeruginosa ATCC 15422, Staphylococcus aureus ATCC 6538, Salmonella cholerasuis ATCC 10708, E. Coli ATCC 0157:H7, Listeria monocytogenes ATCC 11543, Entrococcus facium ATCC 11543, Rhino virus (common colds), and Rotavirus (infectious diarrhea).

About Innovative Medical Services

Innovative Medical Services, based in El Cajon, California, is the nation's leader in pharmaceutical water purification. The Company has expanded from its niche pharmacy market into other, broader markets with new products, including residential and commercial water filtration systems, health and wellness-related retail merchandise, silver ion bioscience technologies in addition to the Company's comprehensive e-commerce health supersite, www.Nutripure.com.

Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current management expectations that involve risks and uncertainties that may result in such expectations not being realized. Potential risks and uncertainties include, but are not limited to, the risks described in filings with the Securities and Exchange Commission.