Recom Managed Systems Enters Joint Venture with TZ Medical to Develop, Market and Sell State-of-the-Art Heart Catheters.

GREENVILLE, S.C. -- Recom Managed Systems (AMEX: RSY) announced today that it has signed a non-binding Memorandum of Understanding with TZ Medical, Inc. of Portland, Ore., pursuant to the creation of an exclusive joint venture between the parties. Under the proposed joint venture, TZ will contribute its entire line of intracardiac catheters and Recom will utilize its patented and patent-pending signal-amplification and noise-reduction technologies to create a new state-of-the-art catheter line. The parties will split the profits of the joint venture equally.

"We are pleased and proud that our researchers continue to develop new uses for our unique noise-reduction technologies, even as we prepare to proceed to market with our initial product, the Model 100 Heart Monitor," said Pamela Bunes, president and chief executive officer of Recom. "We will continue to identify opportunities like this joint venture with TZ Medical to expand the use of our technology in areas with significant growth and revenue potential to create value for Recom's shareholders."

An intracardiac catheter is a flexible tube that is inserted through a vein in the leg and fed into the heart to withdraw samples of blood, measure pressures within the heart's chambers or vessels, or inject contrast media. When used for diagnostic purposes, the catheter is equipped with electrodes connected to electrocardiographic monitors that allow physicians to evaluate cardiac function, including arrhythmia, or irregular heartbeat. The physician can then predict the patient's risk for future cardiac events and determine the best therapy.

With current technologies, the presence of interference (also called "noise" or "artifact") in the reading makes the true reaction of the heart to the diagnostic or clinical procedure difficult to measure. The proposed joint venture will examine the potential for Recom's amplifier to substantially reduce this noise in the next generation of TZ's respected line of catheter products, allowing physicians to make more accurate diagnoses and better therapeutic choices.

"Catheterization is critical in the diagnosis and treatment of cardiovascular disease, but interference in the reading is a constant problem for cardiologists as they seek to determine and provide the best treatment for their patients," said Michael I. Weintraub, MD, FACP, FAAN, clinical professor, New York Medical College Department of Neurology and Internal Medicine. "The combination of Recom's technologies with TZ's catheter products should provide physicians with more accurate information and help improve patient care." Dr. Weintraub recently authored Complementary and Integrative Therapies for Cardiovascular Disease. Previously, he edited a book, Heart and Brain: Interactions of Cardiac and Neurologic Disease.

The transaction is subject to preparation, finalization and execution of definitive and binding documentation, satisfactory due diligence, potential regulatory approvals and other conditions, both known and unknown.

About Recom Managed Systems, Inc.

Recom Managed Systems, Inc. is an emerging life-sciences company focused on the monitoring and detection of disease through continuous biomedical signal monitoring. Recom Managed Systems, Inc. uses its patented signal technology to design and develop medical devices that simplify and reduce the costs of diagnostic testing and patient monitoring in an ambulatory setting. With its patented signal-technology platform, Recom brings clinical-quality physiological signal monitoring to the ambulatory setting.

Recom's first product, the Model 100 Heart Monitor, is an ambulatory patient heart monitor that uses patented signal-processing technology to record a clinical-quality ECG signal in the present of interference generated by the patient's body movements and ambient environment. The Model 100 has received 510(k) clearance from the Food and Drug Administration.

Recom Managed Systems, Inc. is traded on the American Stock Exchange under the symbol RSY. More information is located at http://www.recom-systems.com

About TZ Medical, Inc.

TZ Medical was founded in 1992 by Tom Tribou and Byron Zahler to manufacture pacemaker monitors and cardiac event monitors. Tribou and Zahler both experienced successful careers at United States Surgical Corporation prior to founding TZ Medical. Tribou has 33 years experience in healthcare sales while Zahler has spent 25 years in the healthcare industry.

The company has a primary emphasis on cardiovascular products with niche products for the cardiac catheter, interventional radiology and electrophysiology laboratories. The company sells intracardiac catheters, cardiac monitors, hemostatic products and defibrillation electrodes with 510K FDA approval. In addition, TZ Medical sells a Holter monitor that may provide future opportunities for the Recom amplification technology.

Caution Regarding Forward-Looking Statements

Statements in this release that are not strictly historical are "forward-looking" statements. Forward-looking statements involve known and unknown risks, which may cause Recom's actual results in the future to differ materially from expected results. Factors which could cause or contribute to such differences include, but are not limited to, failure to complete the development and introduction of new products or services, failure to obtain federal or state regulatory approvals governing medical devices, monitoring and other related services or products, inability to obtain physician, patient or insurance acceptance of Recom's products or services, adverse equity-market conditions and declines in the value of Recom's common stock, and the unavailability of financing to complete management's plans and objectives. These risks are qualified in their entirety by cautionary language and risk factors set forth and to be further described in Recom's filings with the Securities and Exchange Commission.