Medsearch Announces Development of New Anesthesia Monitor to be Marketed Internationally.

NEW YORK--(BUSINESS WIRE)--Dec. 3, 1998--

-Company Expects Revenues To Total Over $115 Million Over

The Next 5 Years-

MedSearch, Inc. (OTC BB:MDSX), a cutting-edge developer of medical devices and technologies, today announced that through its subsidiary, Meduck Technologies, Inc., the Company has developed a unique medical device that measures the depth of anesthesia via the sympathetic nervous system.

The Meduck anesthesia monitor has been given the Helsinki approval and a prototype is undergoing the final stages of initial clinical testing. The Company anticipates the anesthesia monitor will be cleared under the FDA 510K ruling providing an expeditious approval procedure. Although anesthesia monitors are fundamental parameters in numerous segments of the medical field, there is no other existing anesthesia monitoring device that can directly measure the sympathetic system of the body.

The monitor was developed by Dr. Ofer Barnea of Meduck. Dr. Barnea received his Ph.D. in Biomedical Engineering from Drexel University in Pennsylvania and is an esteemed member of the Tel Aviv Biomedical Faculty in Israel. This monitor, created by Dr. Barnea, utilizes easily attached, non-invasive sensors to measure the activity of the sympathetic nervous system. A patent is pending in the U.S.

The Meduck Monitor Serving the Medical Community and Insurance Carriers

According to the American Society of Anesthesiologists (ASA), the measurement of photoplethysmograph and temperature parameters are standard during surgery. The Meduck anesthesia monitor utilizes these parameters for the measurement of sympathetic activity. This unique device provides the anesthesiologist with the panoramic view necessary to accurately assess the depth of anesthesia. Additionally, according to the ASA, "out of the 20 million patients undergoing surgical procedures in the U.S. each year, over 150,000 patients experience awareness under anesthesia". The estimated cost of malpractice litigation cases with respect to awareness under anesthesia totals over $1 billion annually.

The Meduck Monitor/Unique Capabilities

Existing monitors measure brain waves (EEG) and muscle movement. These measurements are frequently inaccurate as EEG requires the absence of confounding influences that are impossible to eliminate during surgery. Because of the unreliability of existing monitors, anesthesiologists can inadvertently administer excess medication. Over-administration of anesthetic medication can prolong patient recovery rates and lengthen hospital stays. In excess of $2 billion is spent in the U.S. each year on prolonged hospital stays caused by over-administration of anesthetics.

Research in the last 15 years has shown that although the patient may seem deeply asleep during surgery, this may not be the case at all. If the patient is not deep enough asleep, he may accumulate explicit and implicit memories which can trigger severe sleep disorders, emotional stress of varying degree and mental disorders. These symptoms may implicate patient rates, working capability and quality of life.

The Meduck device's unique monitoring capabilities of the sympathetic system of the body could virtually eliminate a large portion of this $2 billion unnecessary and life-threatening cost.

Jacob Meller, President and Chairman of MedSearch, stated, "Until U.S. FDA approval is obtained, the Company will market the monitor in Europe and other foreign markets. Additionally, MedSearch is considering negotiations with several large corporations with the probability of a joint venture or strategic alliance concerning the Meduck monitor. This monitor and the potential it possesses for the anesthesiologist, additional applications as a home-care sleep monitor for sleep disorders and diagnostic neurological monitor, position MedSearch as a leading competitor in the anesthesia monitoring market and can provide our shareholders with significant long-term value."

"The Company intends to develop between four to six new medical devices each year as it aggressively pursues its strategic growth initiatives," Meller concluded.

Companies (OEM's) currently manufacturing anesthesia devices in which MedSearch believes their device could be utilized as an add-on enhancement to their monitors include: Hewlett Packard (NYSE:HWP), Marquette Electronics, Drager, SpaceLabs Medical Inc. (NASDAQ:SLMD), DataScope Corp. (NASDAQ:DSCP) and Datex.

MedSearch is focused on proprietary medical devices/technologies targeting a number of medical disciplines.

This release may contain forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual events may differ from the Company's expectations as a result of risk factors discussed in the Company's reports on file with the Securities and Exchange Commission.