Karl Storz, CBYON Forge Marketing Alliance; Karl Storz SCB Technology and CBYON Image Guidance Systems to Be Integrated Into the OR1 Operating Room Platform; Alliance Announced at NASS.

Business Editors & Health/Medical Writers

MONTREAL--(BUSINESS WIRE)--Oct. 29, 2002

Karl Storz Endoscopy-America, Inc., the leader in global solutions for the integrated operating room, and CBYON(R) Inc., the technology leader in surgical visualization and navigation systems, announced today the signing of a marketing alliance agreement at the opening session of the 17th annual meeting of the North American Spine Society (NASS). The companies intend to collaborate in the development of an interface between the Karl Storz Communication Bus (SCB) and the CBYON Suite, fully integrating CBYON image guided technologies into the OR1(TM) platform. The agreement also specifies terms for Karl Storz and CBYON to co-promote products developed as a result of the collaboration.

OR1(TM) provides surgeons and operating room staff with a fully integrated operating room environment. Using sophisticated electronic systems, OR1 provides centralized control of every component of the operating room, including overhead mounting systems, surgical lights, operating room tables, endoscopic equipment, cameras, video systems and documentation solutions. Seamless integration of these systems is made possible due to the OR1 and CBYON open architecture design.

"This agreement formally links Karl Storz to one of the industry leaders in image guided technology," said Ali Amiri, vice president, marketing and product development, Karl Storz. "With this solid working relationship, Karl Storz will be able to integrate CBYON image guided capabilities into the OR1 platform. For surgeons and perioperative staff working in the OR1 environment, this means direct touchscreen or voice activation control of the CBYON image guided system."

Steve Martin, alliance manager, Karl Storz, added, "Karl Storz will now be able to integrate CBYON's image guided functionality into new and prospective OR1 facilities, as well as many of the leading medical institutions that have already adopted the integrated OR1 platform."

The main focus at CBYON has been the integration of its advanced visualization software with a variety of minimally invasive surgical instruments, such as endoscopes and fluoroscopes. Using CBYON patented Perspective Volumetric Navigation(TM), the surgeon dynamically observes the patient's 3D imaging data from any orientation, including the surgical tool's eye view. CBYON patented Image Enhanced Endoscopy(TM) synchronizes live endoscopic views with perspective volumetric images. This allows dynamic display of subsurface critical structures in relation to surgically exposed surfaces, making intra-operative targeting or avoidance easier. Currently, the system is optimized for neurosurgery, sinus and spinal applications.

Mitchell Seyedin, president and CEO of CBYON, commented, "This is an exciting time for CBYON. We are receiving significant interest from hospitals seeking to incorporate image guided technology across multiple surgical specialties. At the same time, many of these hospitals are migrating to the integrated OR1 platform. Now we can offer them a comprehensive package that streamlines the surgical process and improves patient care."

CBYON, Inc. (Mountain View, Calif.) is a medical technology company that develops and markets surgical visualization and navigation systems enabling minimally invasive techniques for a variety of procedures. The company's first suite of products is the CBYON(R) Suite, which has received 510(k) clearance by the Food and Drug Administration (FDA). CBYON is a privately held company. For more information please visit www.cbyon.com.

Karl Storz Endoscopy-America, Inc. is an affiliate of Karl Storz GmbH & Co. KG, an international leader for more than 50 years in diagnostic and operative technology, encompassing all endoscopic specialties. Based in Tuttlingen, Germany, Karl Storz GmbH & Co. KG is a family-owned company that designs, engineers, manufactures and markets all its products with an emphasis on visionary design, precision craftsmanship and clinical effectiveness. For more information, call [phone] or visit the company's website at www.karlstorz.com.