RDOC...another bio-tech with big news...Tuesday May 25, 6:25 pm Eastern Time
Company Press Release
SOURCE: Integrated Surgical Systems, Inc.
Integrated Surgical Systems Announces It has Signed a Binding Letter of Intent With a European Investor Group
DAVIS, Calif., May 25 /PRNewswire/ -- Integrated Surgical Systems, Inc. (ISS) (Nasdaq: RDOC; EASDAQ), the world's most prestigious medical robotics company and the world leader in image-directed, semi-autonomous software and robotic products for surgical applications, today announced that the company has signed a binding letter of intent with an investment group for an investment of $4 million in equity funding.
The investment group is led by Senator M.Y. Dogmoch of the Dogmoch Group of Companies. Mr. Dogmoch is Chairman of the group and a renowned businessman in the Middle East and Europe. Mr. Dogmoch is an investor in several high-tech companies and has a reputation as a high-tech expert. He was recently appointed as a Senator of the University in Hamburg, an award of great significance in Germany. ISS previously entered into a marketing and distribution agreement for the Middle East with Dogmoch Group of Companies.
Under the terms of the investment, the investor group will pay licensing fees for the rights to market both the ROBODOC® and the NeuroMate(TM) systems in Europe and the Middle East. The investor group intends to purchase a substantial number of systems from ISS through the year 2000. In connection with the transaction, the investor group will acquire ISS's European sales and service organization and assume those activities.
ISS will also issue warrants sufficient to allow the investor, when combined with the initial shares purchased at market price, to acquire up to 40% of ISS. The warrants will be exercisable upon the achievement of specified sales milestones.
''We are very excited about the opportunity we see with ISS's computer assisted surgery business,'' said Senator Dogmoch of the investor group. ''We believe we can substantially increase the rate of penetration of the company's technology in Europe and the Middle East, because we have both the financial and business resources to facilitate the adoption of this technology in the health care community.''
''ISS's primary markets for the near future are outside the United States,'' said Dr. James C. McGroddy, Chairman of the Board of ISS. ''We have confidence that the relationship with Senator Dogmoch and the investment group will play a major role in strengthening ISS's presence and accelerating the sales of the ISS product family in the important European and Middle East markets.''
Dr. Ramesh Trivedi, who resigned last month from his position as the President and CEO of ISS, played a key role in working with the investment group. As a condition of the transaction, the Dogmoch Group of Companies required that Dr. Trivedi immediately resume his position as the President and CEO of Integrated Surgical Systems. With the signing of the binding letter of intent, the Board of Directors of ISS has re-instated Dr. Trivedi as President and CEO of the Company.
The Company
Integrated Surgical Systems, Inc. develops, manufactures, markets and services computer-controlled, image-directed robotic products for surgical applications. ISS produces the ROBODOC® Surgical Assistant System (ROBODOC), which is designed for orthopedic applications. The ROBODOC System has been used to perform precise total hip replacement surgeries on more than 4,000 patients worldwide. ROBODOC is currently being marketed in Europe. NeuroMate(TM), ISS' neurosurgery product, is the first robotic technology for use in stereotactic brain surgery. NeuroMate consists of a robotic arm assembly and a PC-based positioning system. The product interfaces to popular pre-surgical planning stations, which are offered by a number of third-party vendors. ISS has installed 10 NeuroMate systems in the U.S., France and Japan, which have supported neurosurgical procedures on more than 1,800 patients, to date.
Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties, including the timely development and market acceptance of new products and upgrades to existing products, the impact of competitive products and pricing, and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission (SEC).
Note: ROBODOC® is registered trademark of Integrated Surgical Systems, Inc. NeuroMate(TM) is a trademark of Integrated Surgical Systems, S.A.
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