Medical Dynamics introduces two new products.

ENGLEWOOD, Colo.--(BUSINESS WIRE)--June 14, 1995--Medical Dynamics, Inc. (NASDAQ SmallCap Market: MEDY), a provider of minimally invasive surgical camera systems and accessories, today announced the introduction of two technologically advanced products -- the Universal Sterile Endoscopy System(TM) (USES(TM)) and the Coupler/Drape(TM) -- which will be distributed in the United States and selected foreign markets for use in the endoscopic surgical field.

Universal Sterile Endoscopy System(TM)

The USES System consists of a specially designed single- or three-chip surgical video camera manufactured by Medical Dynamics and a sterile drape for use exclusively with those cameras. The USES cameras, which employ state-of-the-art digital technology, sell for approximately one-third the cost of competing models.

The single-use drapes encase the USES cameras prior to every surgical procedure to provide complete sterility for each patient at a lower cost than traditional sterilization methods. The single- and three-chip USES drapes will sell for $18 and $24, respectively.

"We believe the USES System is perfectly positioned to benefit from hospital, surgery center and individual physician demand for lower-priced, high-quality surgical camera systems," said Van A. Horsley, chief executive officer. "The system should also benefit from the medical industry's increased emphasis on finding a reliable sterilization method for surgical camera systems in order to prevent cross contamination of patients."

Coupler/Drape(TM)

The Coupler/Drape is a single-use, sterile drape designed not only to enclose the camera, but also the coupler (the connecting piece between the camera and endoscope) of an endoscopic surgical camera system. The Coupler/Drape, which is priced at $19.50, addresses the same issues of cost and sterility as the USES Drape, and has the added advantage of conforming to virtually all manufacturers' surgical cameras, couplers and endoscopes, Horsley said.

Both the USES and Coupler drapes eliminate the need for expensive and equipment-damaging means of cleaning, disinfecting or sterilizing prior to each case, thereby drastically reducing equipment sterilization, repair and replacement costs, Horsley said.

"In addition, with the medical community, OSHA and the FDA all searching for alternatives to glutaraldehyde, ethelene oxide gas sterilization and costly mechanical wet processing, our new sterile drape products provide a solution by offering a quick, safe and cost- efficient method of creating a completely sterile endoscopy system," Horsley said.

The Coupler/Drape and the USES System were previewed in late March at the Association of Operating Room Nurses (AORN) convention. Both products have received regulatory clearance for marketing, with patents issued on the USES System and in application on the Coupler/Drape.

"We have generated more than 600 leads for the Coupler/Drape as well as the USES System and are very encouraged by the preliminary market response to the product," Horsley said.

The Coupler and USES drapes combine with two of Medical Dynamics' existing products, Cam-Wrap(TM) and Lap-Wrap(TM), to create the most complete line of sterile drape products available in the industry today, Horsley said.

He added that conservative estimates indicate that 20 million endoscopies are performed worldwide annually, amounting to an approximate potential market of $400 million for endoscopic sterilization products based on an average cost of $20 for either a drape or alternative sterilization technique.

Medical Dynamics designs, develops, manufactures and markets minimally invasive surgical camera systems and accessories. The Company's products include: the Electronic Video Laparoscope, incorporating an image sensor chip at the tip of the laparoscope that produces superior illumination and an exceptional image; the patented Lap-Wrap(TM), a disposable, sterile sheath and drape used to provide a sterile cover for all laparoscopes and camera systems; and the Optical Catheter System(TM), which uses catheter technology to allow direct visualization virtually anywhere in the body on a micro-invasive basis.

CONTACT: Medical Dynamics, Inc., Englewood

Van A. Horsley, 303/790-2990

or

Pfeiffer Public Relations, Inc., Denver

303/393-7044