Micronics and Renal Plant Enter Agreement to Develop Artificial Kidney Microfluidic Lab-On-A-Chip Platform for Kidney Hemodialysis.

Business Editors

REDMOND, Wash. & SOUTHBOROUGH, Mass.--(BUSINESS WIRE)--Oct. 1, 2001

Micronics, Inc. and Renal Plant Corporation announced today that they have entered into an exclusive agreement in which Renal Plant gains access to certain of Micronics' microfluidics technologies for the development of artificial kidney dialysis products.

According to market reports, an estimated 320,000 Americans suffer from end-stage renal disease (ESRD), at an annual cost of $15 billion for dialysis and related treatment. Of these patients, at least 35,000 are awaiting life-saving kidney transplants - a solution that, due to numerous factors, will be available to fewer than one third.

Patients suffering from chronic renal failure rely upon dialysis to remove toxic materials and excess water from their blood. Presently, there are two common dialysis methods - hemodialysis and peritoneal dialysis. The majority of patients are on hemodialysis.

In hemodialysis, a patient's blood is pumped through a filter by a machine. Over the duration of the patient's life - or until an organ transplant is available - this process must take place three to four times each week in either a hospital or a dialysis center. Patients on peritoneal dialysis have fluids injected into their abdomen three to four times daily, allowing the toxins to move through the peritoneal lining of the patient's body. Peritoneal dialysis is a procedure that a patient can undergo at home.

Renal Plant and Micronics have teamed to develop a portable, disposable lab chip-based artificial kidney for hemodialysis. Using Micronics' unique microfluidics technology, the product is intended to allow continuous treatment without the need for hospital or clinic visits. The product is intended to more closely resemble normal kidney function and is expected to result in significantly enhanced medical outcomes and quality of life for people suffering from ESRD.

Microfluidics is the ability to move, mix, pump and control fluids on a microscopic level. The use of microfluidic-based lab chips is expected to revolutionize certain aspects of the medical and diagnostic industries. For example, the ability to control and analyze body fluids with microfluidics-based products is expected to make it easier to provide point-of-care diagnoses and disease treatment at home rather than in the hospital. Renal Plant expects that it will take at least three years to develop a microfluidics-based artificial kidney product for commercial introduction, and is in the process of securing corporate financing to pursue its commercialization plans.

"We believe that microfluidics is key to providing improved solutions to patients on dialysis or awaiting organ transplantation," said Frank Fazio, Renal Plant's president. "In our view, the Micronics technology enables us to develop much needed solutions based on the unique properties of this technology."

Micronics' has licensed to Renal Plant the exclusive use of its H-Filter(R) technology for use in the field of both implantable and portable artificial kidney dialysis products. In exchange for certain upfront and ongoing license fees, purchase of disposable lab cards to be supplied by Micronics under a supply agreement, and royalty payments, and subject to certain terms and conditions, Renal Plant gains worldwide rights to the use of the H-Filter technology for use in the field. Financial terms were not disclosed.

Jim Merselis, president and chief executive officer of Micronics said, "We believe that the application of microfluidics to medical conditions is one of the many important markets this technology can support. We are pleased to be working with Renal Plant to address a vital medical condition with our technology."

Micronics, Inc.

Based in Redmond, Washington, Micronics is a leading developer of microfluidics-based solutions for application in life sciences, drug discovery and development and in vitro diagnostics. Micronics' proprietary technologies expand the boundaries of miniaturization in microfluidics, enabling faster chemical reactions of complex fluids at considerable cost, labor and time savings. The company's unique technology platform allows lab-on-a-chip sample preparation, chemical separation and analysis, miniaturized cellular analysis, and the analysis of whole blood and other complex fluids. Visit http://www.micronics.net for more information.

Renal Plant Corporation

Renal Plant is an early-stage company based in Southborough, Massachusetts. The Company is working in collaboration with leading researchers at the University of Massachusetts and has filed patents on artificial-kidney related applications that it expects to incorporate into planned products. Visit http://www.renalplant.com for more information on Renal Plant Corporation.