-- American BioMed Completes Manufacturing Alliance with MRI --
/FROM PR NEWSWIRE LOS ANGELES 213-626-5500/
TO BUSINESS AND MEDICAL EDITORS:
American BioMed Completes Manufacturing Alliance with MRI
- MRI Licenses Rights to Manufacture Silicone Balloon Catheters Utilizing
ABMI's Proprietary Technology
THE WOODLANDS, Texas, April 7 /PRNewswire/ -- American BioMed, Inc.
(OTC Bulletin Board: ABMI), a leading medical device developer and
manufacturer of minimally invasive devices for the treatment of cardiovascular
disease and proprietary balloon catheters for cardiovascular, urinary and
other disorders, today announced that it has finalized a manufacturing
alliance with Arizona-based MRI, a privately held manufacturer of silicone
catheters. MRI is the largest OEM manufacturer of silicone catheters and is a
leader in the design, development and manufacture of medical devices with
worldwide OEM manufacturing relationships.
Terms of the manufacturing alliance include the relocation of the
Company's facility from Irvine, CA to Tucson, AZ by April 30, 1999. The new
manufacturing facility will be managed and operated by MRI.
Concurrently, the Company announced that it has licensed the rights to
manufacture silicone balloon catheters utilizing its proprietary technology to
MRI and will receive royalties based upon products manufactured and
distributed by MRI. The Company will continue to market its existing catheter
product line and develop co-marketing opportunities with MRI.
Steven B. Rash, President and CEO, stated, "We are extremely enthused with
the manufacturing alliance and licensing agreement with MRI, a world-class
leader in the medical device industry. These transactions will greatly reduce
the Company's operating, production and engineering costs, providing an
estimated $600,000 savings to our cost structure during the year."
"Significant business opportunities made possible through this alliance
coupled with the licensing fees will generate substantial revenue growth in
the year 2000 and beyond. This affords us the opportunity to exploit
additional resources now at our disposal to develop our core technologies --
atherectomy catheters, guidewire microfilters and stents for potential
licensing and commercialization," Rash concluded.
Bob Kelliher, President and CEO of MRI stated that "The manufacturing
alliance with American BioMed compliments our strategy as an OEM producer of
unique all silicone balloon medical devices. Both MRI and ABMI will benefit
from the marketing synergies resulting from our long history and track record
with major medical companies, both public and private, worldwide."
American BioMed, Inc. utilizes state-of-the-art technology to develop,
manufacture and market minimally invasive medical devices for the treatment of
cardiovascular disease. The Company's products include 100%-silicone
catheters, through its Cathlab subsidiary, the Evert-O-Cath(TM), a toposcopic
catheter for site-specific drug delivery and fluid removal, the OmniCath(R),
an atherectomy catheter designed to remove atherosclerotic plaque from
obstructed blood vessels throughout the body, and the OmniFilter, which is
used to prevent blood clots from reaching various organs of the body. The
Company has over twenty-five patents and 11 FDA approvals covering its product
portfolio, and addresses an annual worldwide market estimated to be in excess
of $10 billion.
"Safe harbor" statement under the Private Securities Litigation Reform Act
of 1995: The statements that are not historical facts contained in the release
are forward-looking statements that involve risks and uncertainties including,
but not limited to, the results of research and development efforts, the
results of pre-clinical testing, the effect of regulation by the FDA and other
agencies, the impact of competitive product development, commercialization and
technological difficulties, the impact of the manufacturing alliance, the
results of financing efforts, the effect of the Company's accounting policies
and other risks detailed in the Company's Securities and Exchange Commission
filings.
SOURCE American BioMed, Inc.
/CONTACT: Steven B. Rash, President & CEO of American BioMed,281-367-3895; or
Stuart Bochler of International Market Advisors,732-591-0520/
/Web site: americanbiomed.com
Symbols:
US;ABMI
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