Innomed Technologies Receives Massive First Orders for New Sleep Apnea and Respiratory Device Poised to Hit Market

Tuesday, January 22, 2002

BOCA RATON, Fla.--(BUSINESS WIRE)--

BOCA RATON, Fla.--(BUSINESS WIRE)--Jan. 22, 2002--Innomed Technologies, Inc., a Boca Raton, Florida-based medical technology company for the respiratory and sleep apnea markets, has introduced the FDA approved Nasal Aire(TM) interface. The new product, hoped to revolutionize the sleep apnea industry, is slated to reach the market in mid-January. Innomed has sales commitments in excess of $20 million for this year.
The Nasal Aire(TM) interface differs from competitors' models in several ways: it requires no headgear, virtually eliminates all pressure points on the face and bridge of the nose, has one of the highest CO2 washouts, contains virtually no parts that can break from the device, and it wears like an oxygen cannula.
Innomed Technologies, Inc., has signed contracts with three distributors to market the Nasal Aire(TM) interface. The device will be distributed to the home care markets in the U.S. and abroad, as well as the domestic hospital market. In addition, negotiations are underway with numerous other international distribution networks. Innomed Technologies' agreements are with Medical Industries of America, Inc., to the home care market in the United States; and CareFore Medical, Inc., to the overseas home care market which includes the Far East, including Hong Kong and Japan (one of the largest home care markets in the world), Mexico and Australia. Vent Lab Corporation, Inc. will distribute the product domestically to hospitals offering the disposable version of the product for respiratory departments and emergency rooms.
"According to analyst reports, the sleep apnea market is growing at a pace of 25% annually, with 40% of the market devoted to respiratory products," said R. Patrick Karem, CEO of Innomed Technologies, Inc. "Based on the results of clinical tests and the feedback we have received from physicians, our sales should exceed forecasts.
"Furthermore, 150 physicians from across the country serve on Innomed's advisory board. These physicians have endorsed the product and have expressed great enthusiasm in getting this innovative device on the market and to patients in need."
Independent clinical trials were conducted last year for the Nasal Aire(TM), with further ongoing testing scheduled. The studies showed that when patients are given a choice between using the Nasal Aire(TM) or the three leading competitive masks, manufactured by Resmed, Inc. (RMD), Respironics (RESP), and Mallinckrodt, 98% of the time the Nasal Aire(TM) was chosen.
"We are delighted to be appointed as national distributors for the Nasal Aire(TM) interface," said Russell Bird, president of Medical Industries of America, Inc. "We believe this device has the potential to revolutionize the sleep apnea market because it addresses so many of the primary issues concerning compliance. A very large percentage of patients give up their therapy early on because of problems relating to the masks and head gear. Nasal Aire(TM) improves the odds of compliance dramatically."
"The Nasal Aire(TM) is one of the most innovative products I've seen in the last 20 years. It is equally useful for both the sleep apnea and the respiratory markets," said Bob Martin, vice president of sales and marketing for Vent Lab Corporation, a privately-held manufacturer and distributor of disposable medical devices. Vent Lab is currently manufacturing the Nasal Aire(TM) device. "In the respiratory market, non-invasive ventilation is growing by leaps and bounds. Use of the Nasal Aire(TM) on patients in early stages of respiratory distress will allow many of those patients to avoid being intubated and placed on a ventilator. This device will positively effect patient outcomes and help reduce the cost of quality health care."
Not only has the product received resounding endorsement from medical providers, but it is getting excellent support from the respiratory device industry as well.
"This is a unique and innovative product and we are very excited about the opportunity to market this product outside the U.S.," said L. Robert Mogue, executive vice president of Sales and Marketing for CareFore Medical, Inc., one of Innomed Technologies overseas home care distributors. "The early sales forecast and our initial feedback from customers look extremely promising."
Innomed Technologies, Inc. is a 21st Century medical technologies company. The company is poised to bring new and more effective medical products and devices to the public through a medical development and engineering team, as well as acquisitions of other medical related companies. Innomed Technologies, Inc. has primarily been a research oriented, privately held, medical technology development company for the past four years. The company owns a full utility patent and patents pending. More information regarding Innomed Technologies is available at http://www.innomedinc.com.

About Mergenet Solutions, Inc.

Innomed's parent company is Mergenet Solutions, Inc., a full service technology incubator based in Boca Raton, Florida. The company also can assist private companies in their efforts to become public, as well as ancillary services, such as providing a board of directors, constructing company advisory boards, and private placements.
The company at present has several companies under incubation and accepts applications at the company's web site (http://www.mergenetsolutions.com or http://www.gopublicnet.com). Mergenet Solutions concentrates on technology, medical technology, and energy related companies.

A Private Securities Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release (as well as information included in written statements to be made) contain statements that are forward-looking, such as those relating to consummation of the transaction, anticipated future revenue of the Company's, and success of current public offerings. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward looking statements.