TechniScan Medical Systems Receives $6.4MM from Private Investors.

Successful Round of Financing Follows on Top of $2.8MM NIH Grant for Company's Revolutionary UltraSound Technology

SALT LAKE CITY -- TechniScan Medical Systems (TMS), Inc., a Salt Lake City-based developer of ultrasound technology for breast imaging, today announced the successful completion of its Series D Preferred financing of $6.4 million. The recent funding comes on top of a $2.8 MM Small Business Innovation Research (SBIR) Program grant from the National Cancer Institute (NCI)/National Institutes of Health (NIH) awarded in late 2006. "Our investors have once again demonstrated their confidence in the quality of our company management team and the potential of our technology," noted TMS CEO and President David C. Robinson. "TMS is rolling into its commercialization phase with significant funding from the private sector and important support from NCI/NIH, whose SBIR funding was awarded to fewer than one in nine companies in 2006."

TechniScan's revolutionary technology, UltraSound CT[TM] (USCT[TM]), provides unique diagnostic information that could help radiologists distinguish between cancers and benign conditions. Additionally, the technology uses a breast cancer diagnostic exam that is not painful or uncomfortable. This new imaging system is intended to aid physicians in diagnosing breast cancer in conjunction with traditional mammography by providing detailed information about the anatomy and tissue properties of the breast in ways not previously possible. The goal of the USCT[TM] system is to characterize the ultrasound properties of normal, benign and malignant tissues in the breast which could enable physicians and radiologists to more easily recognize the presence of cancer and provide more effective management.

TechniScan is a private company that grew out of the University of Utah's Department of Bioengineering. Support for commercializing the technology has been provided by the Utah Governor's Office of Economic Development (GOED) Centers for Excellence Program. "This process exemplifies the way the system should work," said David Robinson, TechniScan's CEO. "Without the support of institutions like GOED, University of Utah and NCI/NIH, promising technologies like ours would not be successfully commercialized. Their ongoing support is a tremendous validation of what we have accomplished and substantiates the real promise of our technology."

About TechniScan Medical Systems, Inc.

Founded in 1984, TMS (www.techniscanmedicalsystems.com) uses an ultrasound technology called inverse scattering, which makes use of the entire spectrum of information available from the ultrasound signal. The resulting diagnostic information includes ultrasound transmission tomography images in a format similar to that provided by MRI and CT imaging. In addition, UltraSound CT[TM] provides indices of speed and attenuation of sound, tissue properties that may provide physicians with valuable diagnostic information.