FOR IMMEDIATE RELEASE
Breast imaging company, TechniScan, signs manufacturing agreement with Texas company
SALT LAKE CITY (February 24, 2011) – TechniScan (OTC BB: TSNI), a medical device company engaged in the development and commercialization of an automated 3D breast ultrasound imaging system, announced today that it has signed agreements for manufacturing and use of trademarks with Austin, Texas-based Womens3D.
These agreements follow a product development agreement signed between the two companies in January 2011 in which they agreed to jointly develop a specialized version of TechniScan’s Warm Bath Ultrasound (WBU) system specifically for Womens3D target market of women’s specific health practices such as OB/GYN and general practice offices.
Under the terms of the manufacturing agreement, TechniScan will be the exclusive manufacturer and supplier of the product(s) and Womens3D will receive a license to sell the product to its target market. The license becomes exclusive upon certain conditions being met, including payment of at least $1.5 million to TechniScan in connection with the initial design and development of the product. Womens3D has also committed to purchase at least $10 million of TechniScan’s products during the 36 months following FDA approval.
In addition to the manufacturing and trademark agreements, TechniScan receives shares of Womens3D common stock equal to 20 percent of the current capitalization of Womens3D.
“TechniScan is energized by our new partnership with Womens3D. We are looking forward to collaborating on the development and manufacturing of a WBU imaging system that addresses the unique needs of their target market. The partnership will potentially open new markets for our equipment and add an experienced medical imaging partner to our development efforts,” said Dave Robinson, chief executive officer of TechniScan.
Womens3D’s Chief Medical Officer and Research Scientist and Imaging Director at Texas A&M’s Institute for Preclinical Studies, Mark Lenox, Ph.D., conducted the technical evaluation of TechniScan’s WBU system.
TechniScan, Inc. is a medical device company engaged in the development and commercialization of a non-invasive imaging tool designed to provide physicians with automated ultrasound images of the human breast. TechniScan's Warm Bath Ultrasound™ (WBU™) imaging device is limited by U.S. law to investigational use unless, and until, cleared by the FDA. For more information, please visit www.tsni.com.
Forward Looking Statements
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