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Tuesday April 7, 8:06 am Eastern Time
Company Press Release
NetMed Completes Successful Test of Ceramic Oxygen Generator
Targets Commercialization Within 12 Months
DUBLIN, Ohio--(BUSINESS WIRE)--April 7, 1998--NetMed, Inc. (AMEX: NMD - news), a developer and marketer of
medical and health-related technologies, announced today that the company has successfully completed acceptance testing of
a prototype of a ceramic oxygen generator which will be incorporated into its OxyNet(R) oxygen concentrator for the home
healthcare market. The company also announced the closing of a previously announced transaction with CeramPhysics, Inc.
wherein the company has acquired 95 percent of the CeramPhysics subsidiary which holds an exclusive worldwide license to
the technology for all applications except fuel cells and oxygen sensors. The patented technology draws room air through a
proprietary ceramic element to produce and collect pure oxygen. The technology has been in development for more than five
years, partly with the assistance of NetMed.
''Our goal'', said David J. Richards, NetMed president and chief executive officer, ''is to produce and market an oxygen
concentrator for home use that will be significantly better than products currently in the marketplace, which are based on
25-year-old technology. We believe this patented oxygen system will be lighter, quieter, more reliable and less costly to own
than current systems, and we are committed to commercializing the technology within the next 12 months.'' Richards said that
the company expects to demonstrate a 4 liter per minute commercial prototype of the system this summer and to begin
marketing a 5-6 liter per minute device during the second quarter of 1999.
Although the ceramic oxygen technology has many potential markets, including military and industrial uses, NetMed's initial
focus will be to market the OxyNet home oxygen concentrator to home healthcare providers who provide medical equipment
directly to both patients and health care organizations such as hospitals and nursing homes.
''Our immediate goal is to capitalize on the opportunity in the home oxygen market,'' said Mr. Richards, ''However we think
the technology provides many significant long term opportunities in related markets.''
The annual worldwide market for oxygen concentrators is estimated at close to $300 million, according to Richards, and is
expected to grow at an annual rate of 10 to 12 percent per year over the next several years.
Statements in this release which relate to other than strictly historical facts, including statements about the Company's plans and
strategies, as well as management's expectations about new and existing products, technologies and opportunities, market
growth, demand for and acceptance of new and existing products (including the PAPNET Testing System and the OxyNet
oxygen concentration device), are forward looking statements. The words ''believe,'' ''expect,'' ''anticipate,'' ''estimate,''
''project,'' and similar expressions identify forward-looking statements that speak only as of the date hereof. Investors are
cautioned that such statements involve risks and uncertainties that could cause actual results to differ materially from historical
or anticipated results due to many factors including, but not limited to, the Company's current reliance on a single product
marketed under license from NSI, the corresponding dependence on NSI's patents and proprietary technology, government
regulation, continuing losses from operations and negative cash flow, limited marketing and sales history, the impact of third
party reimbursement decisions, the challenges of research and development of new products, and other risks detailed in the
Company's most recent annual Report on Form 10-K and other Securities and Exchange Commission filings. The Company
undertakes no obligation to publicly update or revise any forward-looking statements.
Contact:
NetMed, Inc.
Ken Leachman
Vice President, Finance
(614) 793-9356
or
Porter, LeVay & Rose, Inc.
Martin Skala, Vice President
John Chuhran, Media Consultant
212/564-4700
More Quotes and News:
Netmed Inc (AMEX:NMD - news)
Related News Categories: biotech, medical/pharmaceutical |
