FOR IMMEDIATE RELEASE
Esaote Group and TechniScan Medical Systems Sign Agreement
The Italian Esaote Group and Salt Lake City, Utah-based TechniScan Medical Systems Sign Key Technology Sharing and Financial Partnership Agreement
Genoa, Italy - Salt Lake City, Utah: November 26th 2007. The Esaote Group (Esaote), an international leader in the production of medical imaging and diagnostic technologies and TechniScan Medical Systems (TMS) Inc., a Salt Lake City-based developer of ultrasound technology for breast imaging, have signed an important partnership agreement to share technologies and intellectual property, collaborate in the development of TechniScan's UltraSound CTTM, and to cooperate in marketing. As a part of the agreements Esaote will also participate as a financial partner taking up to a 20% equity stake in TMS.
"These are significant agreements that will bring great strategic benefits for both companies. TechniScan's innovative approach to breast imaging has the potential to completely change the way breast disease is diagnosed and treated in the United States and around the world," said Esaote Group Managing Director and General Manager Fabrizio Landi. "We expect that this partnership will create new diagnostic solutions as well as fresh opportunities for both companies in the medical-scientific and industrial sectors.
In addition to the cooperative development agreements, Esaote will also make a substantial investment in TMS equity, investing up to $9 million. Coincident with the close of this investment, TMS and Esaote will execute an Original Equipment Manufacturing (OEM) agreement, which will allow TMS to incorporate Esaote's products and technologies in the products developed by TMS while the TMS technology will be used in future Esaote ultrasound systems. Furthermore the Companies will execute an exclusive distribution agreement for the European market and a commercial cooperation for the American market.
"This new relationship brings TechniScan so much more than investment. It validates our development approach and clinical applications strategy, and provides us with worldwide expertise in systems development, marketing and sales" noted TMS CEO David C. Robinson. "Esaote Group is truly an international powerhouse that brings us market credibility and the critical mass in engineering, sales and distribution to take UltraSound CTTM to the next level in our commercialization efforts."
TMS has raised more than $16 million in equity financing and $4 million in federal grant funding from the National Institutes of Health (NIH) and the National Cancer Institute (NCI) over the last 5 years. Along with these agreements, TechniScan will close its Series E Preferred financing, with commitments of $9 million from Esaote and more than $3 million already committed from TMS board and current shareholders bringing the total raised to more than $32 million.
With a 2007 consolidated turnover of about $370 million (USD) - of which approximately 60% was generated in international markets - the Esaote Group operates wholly owned subsidiaries in Holland, France, Germany, Spain, USA, Argentine, Brazil, China and India. Today Esaote employs 1200 employees, 20% of whom are employed in Research & Development activities. Information concerning Esaote and its products is available at .
TechniScan Medical Systems, Inc. (TMS) is a private company that grew out of the University of Utah Department of Bioengineering. TMS develops innovative 3D medical imaging technology using both reflection and transmission ultrasound to create tomographic images of the female breast. TMS's unique ultrasound CT breast scanning systems are intended to provide physicians with new, automated, non-invasive, tools for diagnostic breast imaging. TMS has developed this technology with the continued support of the Governor's Office of Economic Development (GOED) Centers for Excellence Program in Utah, the National Institute of Health (NIH) and the National Cancer Institute (NCI). Information concerning TechniScan Medical Systems, Inc and its products is available at www.techniscanmedical.com. The TMS breast UltraSound CTTM imaging device is limited by US law to investigational use until cleared by the FDA.
For additional information:
Esaote Press Contact (USA - Italy)
About TechniScan Medical Systems, Inc.
TechniScan Medical Systems (TMS) is a publicly traded medical device company engaged in the development and commercialization of a revolutionary ultrasound imaging system, SvaraTM, that uses a process called Warm Bath Ultrasound (WBUTM) to provide automated, 3D, high quality ultrasound images of the human breast. SvaraTM is designed to provide physicians with a new, non-invasive, diagnostic imaging tool that will provide detailed information about the anatomy (i.e. physical structures within the breast) and pathology (i.e. bulk tissue properties). The Svara WBUTM is a B-mode and reflection tomographic ultrasound system for imaging a patient's whole breast.
For More Information:
Press and Media
TechniScan Medical Systems
Dave Robinson, CEO
TechniScan Medical Systems