Radi Medical Systems Announces 2006 Medicare Hospital Outpatient Payment Rates for Myocardial Fractional Flow Reserve (FFR(myo)).

WILMINGTON, Mass. -- Radi Medical Systems, Inc (Radi) announced today that the Center for Medicare and Medicaid Services (CMS) has approved the proposed 2006 Medicare hospital outpatient payment classifications and rates. The 2006 rates have an increased amount of reimbursement when measuring Myocardial Fractional Flow Reserve (FFR(myo)) in multiple coronary vessels.

Numerous clinical studies have shown that FFR(myo) can be used to accurately assess the functional significance of coronary lesions. Comparative studies have shown that cost savings can be obtained by routinely utilizing FFR(myo) to assist in identifying the culprit stenosis via a 'tailored' approach in multi-vessel disease.

The adjustments to the reimbursement codes for FFR(myo) that take effect January 1, 2006 are as follows:

--APC group 0670, entitled 'Level II Intravascular and Intracardiac Ultrasound and Flow Reserve' has a national average payment rate of $1711.22, a decrease of $20.02.

--APC group 0416, entitled 'Level I Intravascular and Intracardiac Ultrasound and Flow Reserve' has a national average payment rate of $978.74, an increase of $704.18.

--CPT Codes 93571 and 93572 have decreased approximately 4% to $91.89 and $72.00, respectively.

APC group 416 and CPT code 93572 are utilized when more then one vessel is interrogated to measure FFR(myo).

Commenting on the new CMS ruling, Jim Archetto, COO, Radi Medical Systems Inc, states "These revised reimbursement rates mirror the clinical data; specifically, with the advent of drug eluting stents and aggressive medical therapies, more patients with complex coronary disease are presenting to the cath-lab for diagnosis and treatment. FFR(myo) is a quick, clinically validated method for the identification, localization and post intervention assessment of coronary artery disease. The updated reimbursement rates ensure that hospitals can accurately receive payment for this vital procedure."

Radi's physiology platform is the only system on the market that provides measurement of pressure (FFR), flow (CFR) and intravascular temperature using a single PressureWire(R)Sensor and one instrument. The new generation of intravascular assessment products includes the PressureWire(R)5 Sensor coronary guidewire, with significantly improved handling characteristics, and the RadiAnalyzer(R)Xpress, which provides a new level of ease of use for FFR measurements through an intuitive set up sequence.

About Radi Medical AB

Radi Medical Systems AB develops, manufactures, markets and sells medical devices in the field of interventional cardiology. The company is focused on two key areas: Intravascular sensors (coronary physiology) and Hemostasis Management (products to stop bleeding after interventional cardiology procedures). In collaboration with physicians and institutions around the world, Radi Medical Systems is committed to meeting the needs of healthcare professionals and their patients through innovation, technology and expertise. In addition, Radi offers value added support through education and training. Headquartered in Uppsala, Sweden, the company has a total of 250 employees worldwide with subsidiaries in Australia, Germany, Japan, Thailand, Switzerland, BeNeLux, United Kingdom and in the United States.

All CPT Codes are Copyright 2005, American Medical Association