Biosonics Signs Agreement With Leading National Health Care Advisory and Marketing Firm, Health Care Medical Solutions II

Business Wire, Sept 7, 1999

FORT WASHINGTON, Pa.--(BUSINESS WIRE)--Sept. 7, 1999--

Biosonics, Inc. (OTC BB:BISN), the Fort Washington, PA - based company that specializes in medical electrotherapeutic solutions, has signed a comprehensive medical agreement with Health Care Medical Solutions II, of Sioux Falls, SD.

Health Care Medical Solutions II (HCMS II) has been brought on board to assist Biosonics' sales and marketing efforts for the FDA approved Cystotron(TM) and other electrotherapeutic biomedical devices. HCMS II has extensive experience in medical product development, third party payment, medical equipment sales and marketing, managed care and medically related consulting.

HCMS II has worked with OEM medical product companies, the Mayo Clinic, the Executive Office of South Dakota, several state Medicaid agencies, the Federal Government (HCFA), numerous insurance companies and HMOs, as well as venture capital companies.

"Especially exciting is the FDA approved Cystotron incontinence device. Our initial focus is to secure relationships with clinical and luminary reference sites that will introduce the Cystotron into new markets. We will also identify and prepare distribution agreements with national and regional medical device marketing organizations," said Michael C. Rost, MD, President and Medical Director of HCMS II. "We have managed our own products from invention through international sales and distribution. HCMS II's extensive contacts with practicing physicians throughout the nation will position Biosonics to introduce its products to the customer."

Sandra Pileggi, Vice President of Biosonics, stated, "Over the past several months, I have had extensive conversations with Dr. Rost and his staff while interviewing numerous groups. The breadth of their product sales and marketing, physician relations, and third party reimbursement (including Medicaid, Medicare, HMO's, DRG's and CPT Codes) experience is a welcome addition to Biosonics."

Over 13 million people, based on US Dept of Health and Human Services statistics, suffer from incontinence, and there is a $13 billion market for incontinence products. The Cystotron is FDA approved for marketing, and offers an alternative treatment for urinary incontinent people.

This therapeutic device has been proven to have a rehabilitative effect on patients, in as little as 4 to 6 weeks.

In addition to the Cystotron, Biosonics has FDA marketing approval for the Salitron(R) a device to treat dry mouth which effects approximately 1 million sufferers of Sjogren's syndrome.

Biosonics has also developed several patented medical products that incorporate the same technology as the approved devices, for medical conditions such as erectile dysfunction (20 million men) and nasal/sinus congestion (50 million people) as well as diagnostic tools for physicians. Further information is available at the company's web site (www.biosonics.com).

All statements contained in this press release are not historical facts, including but not limited to the Company's plans for product development and marketing, are based on current expectations.

These statements are forward-looking (as defined in the U.S. Private Securities Litigation Reform Act of 1995 and the Act) in nature and involve a number of risks and uncertainties.

The factors that could cause actual results to vary materially include the availability of capital to finance operations on terms satisfactory to the Company and the availability of clearances or approvals of products by federal, state and foreign governmental authorities.