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NQCI Comments on Terminated Merger and License Transaction with Xcorporeal, Inc.

BEVERLY HILLS, Calif. -- National Quality Care, Inc. (OTCBB:NQCI) ("NQCI") refers to its Current Report on Form 8-K filed with the Securities and Exchange Commission on January 4, 2007, which report is available for review on the SEC website at http://www.sec.gov. In such Current Report, NQCI announced, among other things, that as a result of Xcorporeal's breaches of contract and fraudulent and other wrongful conduct, it had terminated all transactions and agreements between NQCI and Xcorporeal, Inc., including, without limitation, a Merger Agreement and a License Agreement, each dated as of September 1, 2007, between NQCI and Xcorporeal.

Robert Snukal, NQCI's Chief Executive Officer, stated that, "In response to NQCI's assertion of its rights, Xcorporeal has made a number of meritless allegations, which it has repeated in a press release dated January 9, 2007 that it filed with the SEC pursuant to a Current Report on Form 8-K of the same date." Mr. Snukal further stated that, "Xcorporeal's press release is riddled with too many deliberate mischaracterizations and outright falsehoods to warrant a point-by-point refutation." Moreover, NQCI notes that the matters referenced in Xcorporeal's press release are pending before the Los Angeles Superior Court (Case No. BC364140, which NQCI filed against Xcorporeal and Victor Gura on December 29, 2006) and before an arbitrator in Santa Monica, California. NQCI intends to vigorously pursue its rights and remedies in appropriate judicial forums. NQCI is confident that these proceedings will confirm that NQCI has properly terminated the License Agreement and all other transactions and agreements between NQCI and Xcorporeal, and that such proceedings may also result in the award of monetary damages and other relief to NQCI. Accordingly, Mr. Snukal stated that, "NQCI believes that there is no reason to debate the issues via press release, and regards Xcorporeal's attempt to do, by means of a series of false and misleading statements made in an inappropriate forum, as a continuation of its pattern of wrongful conduct."

About National Quality Care, Inc.

NQCI will continue to focus on the development of its wearable artificial kidney, which can be worn as a belt and operates 24 hours a day, 7 days a week. NQCI also has developed a continuous ultrafiltration belt for the treatment of patients with Congestive Heart Failure. The wearable artificial kidney, for which NQCI recently received its first patent, is designed to treat patients suffering from ESRD by providing continuous dialysis from a device worn as a belt by the patient. However, recent studies have indicated that the device can also be used safely and effectively in a simplified version to treat the salt and fluid overload afflicting patients with Class III and IV Congestive Heart Failure.

Some paragraphs of this press release, particularly those describing NQCI's strategies, operating expense reductions and business plans, contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. While NQCI is working to achieve those goals, actual results could differ materially from those projected in the forward-looking statements as a result of a number of factors, including difficulties in marketing its products and services, need for capital, competition from other companies and other factors, any of which could have an adverse effect on the business plans of NQCI, its reputation in the industry or its expected financial return from operations. Factors such as these could have an adverse effect on NQCI's results of operations. In light of significant uncertainties inherent in forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by NQCI and its subsidiaries that such forward-looking statements will be achieved.
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Publication:Business Wire
Date:Jan 10, 2007
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