NeoPath signs ARUP Laboratories as new customer for the AutoPap 300 QC System

Business Wire, Oct 25, 1996

REDMOND, WASHINGTON--(BUSINESS WIRE)--October 25, 1996-- NeoPath, Inc. (NASDAQ:NPTH) today announced that it has signed an agreement with ARUP Laboratories to install two AutoPap(R) 300 QC Systems at its Salt Lake City, Utah facility. ARUP Laboratories processes approximately 70,000 Pap smears per year and plans to run 100% of the Pap smears originally classified as normal through the AutoPap QC System as part of their quality assurance process.

"We're eager to begin implementing NeoPath's technology to help improve the accuracy of Pap smear testing in our laboratory," said Dr. Jay Marshall, Medical Director, Cytopathology, ARUP Laboratories.

Pap smears are the standard screening test for the early detection of precancerous conditions and cervical cancer. The AutoPap System rescreens Pap smear slides initially classified as normal by trained screeners (cytotechnologists). Clinical trials showed the device improves the detection rate of false negatives in Pap smear testing in U.S. clinical laboratories, thus increasing the ability to identify early signs on cervical cancer.

"This agreement with ARUP Laboratories in Utah opens a new territory to be served by our AutoPap 300 QC System," said Alan C. Nelson, Ph.D., President and Chief Executive Officer of NeoPath, Inc. "We are pleased to support the quality assurance efforts of yet another fine clinical laboratory in the U.S."

The AutoPap System, developed by NeoPath, Inc., is a medical device that integrates proprietary high-speed image processing computers, video imaging technology and sophisticated image interpretation software to capture and analyze the thousands of microscopic images from a Pap smear slide. The U.S. Food and Drug Administration granted NeoPath PMA approval to market the AutoPap System on September 29, 1995. In March 1996 NeoPath received HCFA approval for the AutoPap System to be used in the quality control rescreening of Pap smear slides.

NeoPath, Inc. developed the AutoPap System in pursuit of its goal to help eradicate cervical cancer worldwide. The company's core expertise is in the research, development, and commercialization of technologies to automate the interpretation of medical images. The company, with headquarters in Redmond, has approximately 180 employees.

Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks and uncertainties, including without limitation, product and manufacturing regulatory approvals; the Company's limited manufacturing, marketing, customer service and support capabilities; the Company's sole or limited source of supply of certain components; the status of competing products; and other risks and uncertainties detailed in the Company's filings with the Securities and Exchange Commission.

CONTACT: Martin Reid or Stacie D. Byars

National Sales Director Investor Relations

NeoPath, Inc. NeoPath, Inc.

(206) 869-7284 (206) 556-3050