Paradigm Medical to Launch New Equipment/Consumables to Aid in Lasik Surgery.

Business Editors

American Society of Cataract and Refractive Surgery 2002

SALT LAKE CITY, Utah--(BUSINESS WIRE)--May 13, 2002

Paradigm Medical Industries, Inc. (NASDAQ: PMED/PMEDW) announced today it will launch its patented new automated microkeratome, the "K-Tome," at the American Society of Cataract and Refractive Surgery (ASCRS) meeting in Philadelphia on June 2-5, 2002.

The new system incorporates a disposable blade in a patented non-gear-driven housing that is used to cut the corneal flap for LASIK (laser-assisted in situ keratomileusis) surgery, the popular surgical procedure for correcting near-sightedness. After the flap is made, it is rolled back and the exposed inner surface receives laser treatment which changes the refractive index, freeing near-sighted people of the need for glasses. More than 40% of the eyeglass wearing U.S. population suffers from near-sightedness.

"Our `K-Tome' will represent a second generation device used in refractive vision correction, and is related to our acquisition of Innovative Optics earlier this year," said Paradigm Medical's Chairman and Chief Executive Officer, Thomas F. Motter. "According to industry studies, there were more than 1 million refractive surgery procedures performed in the U.S. in 1999. That figure was expected to exceed 3 million in 2001 and reach 6 million in 2003.

"Our system is superior in several respects," Mr. Motter added. "The blade is soft-wear driven through a patented mechanical process, which avoids the inherent dangers associated with gear-driven systems like torque and wobbling that can result in corneal tears, perforations, free flaps and button holes. These serious complications have proven problematic for eye surgeons. All the other systems are gear driven and leave troughing on the surface of the cut, making outcomes from lasing an exact new radius of curvature as well as flap management less predictable."

According to Dr. Charles Casebeer, one of the pre-eminent ophthalmic pioneers in LASIK surgery, "One more big advantage is the fact that the surgeon can actually view the cut while being made through the patented sapphire applanation plate, allowing him to see what is happening all along the route of the cut in real time, and to subjectively evaluate and determine if stopping is appropriate before it is too late. This is very significant."

"Paradigm Medical believes a great opportunity exists to potentially replace 10,000 gear-driven systems with our Food and Drug Administration-approved technological advancement," Mr. Motter continued. "It will sell for about $50,000. Moreover, the new disposable blade business will also prove to be a growth business for the Company since the average surgeon is currently performing six cases per week, according to a recent Theta Reports survey on the refractive vision correction industry.

"We think that the combination of a more elegant approach, enhanced safety features and a significant reduction in blade price to the surgeon will translate into a rapid industry conversion to our technology. The Company has built adequate inventory to achieve rapid market penetration through year's end," Mr. Motter concluded.

Paradigm Medical Industries, Inc., currently develops, manufactures and markets surgical and diagnostic high-tech, proprietary equipment and consumable products for the medical industry. The Company's corporate headquarters are located at 2355 South 1070 West, Salt Lake City, Utah 84119. Call 801-977-8970 or visit us at our web site at www.paradigm-medical.com.

This press release contains statements that, if not verifiable historical fact, may be viewed as forward-looking statements that could predict future events or outcomes with respect to Paradigm and its business. The predictions in these statements will involve risk and uncertainties and, accordingly, actual results may differ significantly from the results discussed or implied in such forward-looking statements.