Mirabel Medical Systems Closes $9 Million Funding; New Breast Cancer Screening System Development Continues.

AUSTIN, Texas -- Mirabel Medical Systems, developer of the T-Scan(TM) breast cancer screening system, closed a $9 million second-round of funding today. The over-subscribed round was led by Stockton Partners, a New York-based private equity firm. The funding will allow Mirabel Medical to continue plans to bring the T-Scan(TM) 2000 ED to market over the next 12 months.

"It appears that Mirabel Medical Systems is poised to transform breast cancer screening for younger women," said Ken Goldman, Managing Director of Stockton Partners. "We are excited about working with this technology and this management team, and look forward to helping Mirabel Medical become the undisputed leader in the development of innovative cancer screening solutions." Harvey Krueger, Chairman of Stockton Partners and Vice Chairman of Lehman Brothers Inc. will be joining the Mirabel Medical board of directors.

T-Scan is the first system designed to be used for routine annual breast cancer risk screening in women ages 30 to 40, who typically have denser breast tissue, as a complement to a clinical breast exam (CBE). The test is non-invasive, utilizing Electrical Impendence Scanning (EIS) to measure low-level electric signals as they pass through breast tissue. Like an ultrasound, the painless 10-minute exam provides immediate results, identifying signal flow patterns that are consistent with an increased risk for breast cancer. Women determined to be at high risk for breast cancer following a T-Scan screening would then be referred for mammography.

Mirabel Medical has submitted a premarketing approval application to the FDA for T-Scan(TM) 2000ED, and it has been assigned expedited review status by the agency based on its potential to provide clinically meaningful advantages over existing screening technology in women under 40 years of age.

"We are extremely encouraged by the strong support we've received from physicians involved in the clinical trials," says Ron Ginor, MD, president and CEO of Mirabel Medical. "With more than 20,000 exams completed as part of our clinical development -- and nearly 3,000 exams performed in just the last few months -- we are convinced that this system will play a critical role in identifying young women who are at increased risk for breast cancer and most likely to benefit from additional imaging."

Lt. Col. Alexander Stojadinovic, Vice Chairman of Surgery at the Walter Reed Army Medical Center, who is a primary investigator in a multi-center trial evaluating the T-Scan system and an expert on EIS technologies says, "T-Scan represents a potentially important approach to the challenge of identifying high-risk young women under 40 who generally have no other practical modality for the detection of breast cancer. If breast tissue changes detected by EIS are proven to correlate with cancer risk, this would advance significantly the approach to the selection of young women for advanced imaging and more diligent clinical surveillance."

Breast cancer is the leading cause of cancer death in women between the ages of 25 and 40, and will strike 1 of every 217 women by age 40.

The T-Scan(TM) 2000ED is currently available for investigational use only pending FDA approval for marketing. It is anticipated that the device will be available on the commercial market over the next 12 months.

About Mirabel Medical Systems Inc.

Mirabel Medical Systems is a leading developer and manufacturer of Electrical Impedance Scanning (EIS) detection systems designed for early breast cancer risk assessment. Founded in 1993, Mirabel Medical is headquartered in Austin, Texas and has research, development and manufacturing operations in Israel.

Mirabel Medical Systems, T-Scan and the T-Scan 2000ED are trademarks of Mirabel Medical Systems Inc. All other company or product names are the registered trademarks, or trademarks of their respective owners.

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