SRS Medical Purchases Urodynamics and Incontinence Product Lines from Endocare; Latest Acquisition in Incontinence and Women's Health.

Business Editors/Health/Medical Writers

BIOWIRE2K

BILLERICA, Mass.--(BUSINESS WIRE)--Oct. 17, 2003

SRS Medical Corp. today announced that it had acquired all assets related to urodynamic products and certain incontinence treatment devices from Endocare, Inc. of Irvine, CA (ENDO.PK). The transaction, valued at approximately $3 million, includes the intellectual property, customer lists and inventory related to the Timm Medical and Browne(TM) urodynamic products, as well as the C3(TM) (male) and StepFree(TM) (female) devices for incontinence treatment.

This is the third significant acquisition by SRS Medical in the area of incontinence and women's health. In January of this year, SRS Medical acquired substantially all of the assets of Asbrook/Eris of Ventura, CA, a leading manufacturer of urodynamic products, and previously acquired the In-Flow(TM) device, an advanced technology for female atonic bladder, from American Medical Systems, Inc. (AMS) of Minnetonka MN (Nasdaq:AMMD).

Urodynamic products are used to evaluate urinary tract function and provide the medical justification for most therapeutic interventions related to urinary incontinence and other voiding disorders. Many analysts believe that the market for urodynamics is poised for rapid growth, due to an increasing recognition of the value of establishing a diagnostic basis for treatments, as well as increases in the rate of reimbursement. At a time when rates for most procedures are being cut, CMS/Medicare this year announced increased reimbursement averaging 40% for urodynamics.

SRS Medical CEO Kevin M. Connolly said that the purchase of these product lines is consistent with the company's strategy of offering a comprehensive program for the diagnosis and conservative treatment of incontinence.

"The Endocare products fit seamlessly into our continence care program. In particular, this acquisition provides us with the customer base to leverage both our Eris technology and Endocare's new urodynamic systems," Connolly said.

William J. Nydam, President of Endocare, commented, "This is a transaction that works for both parties. The Timm/Browne urodynamics are well respected products that fit with SRS Medical's program and the sale of this product category is in line with Endocare's announced strategy to refocus its efforts on its core platform technology of tumor ablation."

SRS Medical Corp. is a wholly-owned subsidiary of SRS Medical Systems, Inc., a privately held Delaware corporation with facilities in Billerica MA and Redmond WA. To learn more about SRS Medical and its products, please visit http://www.srsmedical.com.