Philips Medical Systems and North American Scientific Inc. to Collaborate on Research and Development of Novel Imaging Technology

Business Wire, Feb 21, 2002

Business Editors & Health/Medical Writers

CHATSWORTH, Calif.--(BW HealthWire)--Feb. 21, 2002

Agreement Between Philips Medical Systems and the Theseus Imaging

Subsidiary of North American Scientific Expected to Accelerate

Clinical Application of In Vivo Imaging of Cardiac Cell Death

Philips Medical Systems, a division of Royal Philips Electronics (NYSE: PHG)(AEX: PHI), and Theseus Imaging Corporation, a subsidiary of North American Scientific Inc. (Nasdaq: NASI), a developer of radiopharmaceutical agents, announced today a collaboration to undertake the research and development of improved methodology for the noninvasive imaging of cardiac cell death. Improved imaging and understanding of cardiac cell death may enable more accurate evaluation of disease progression and response to treatment in patients suffering from coronary artery disease.

The collaborative research will focus on optimizing techniques and instrumentation for using Apomate(TM), an investigational in vivo nuclear medicine imaging agent that targets cells undergoing apoptosis or necrosis.

Under the terms of the agreement, Theseus will provide images and other data from its cardiac imaging trials of Apomate(TM) to Philips Medical Systems. Philips will use the data to develop improved fusion of Apomate(TM) and Thallium images using advanced simultaneous dual isotope imaging (SDI) through the application of Vantage Pro, its proprietary attenuation correction technology. Both parties believe that the collaboration will result in improved imaging methodology that should enhance Apomate(TM) imaging, leading to increased clinical acceptance and improved clinical outcomes when Apomate(TM) imaging is applied.

"This agreement provides us with access to what we believe is a unique imaging technology," said Jeff Nelson, general manager of Philips Nuclear Medicine business line. "Abnormal myocardial cell death is a critical factor in evaluating the management of coronary artery disease and heart failure. Philips is pursuing an active imaging development program that will provide innovative instrumentation and imaging software for the further growth of nuclear cardiology as a critical element of cardiac patient care."

"The Philips collaboration is another potent example of how Theseus is moving to position its Apomate(TM) imaging agent for the detection of cell death," said Dr. Allan Green, President of Theseus Imaging Corporation. "The development of specialized, high quality technology and software by Philips Medical Systems for dual isotope imaging and for attenuation correction to provide improved quantification of image data provides important support for our Apomate(TM) development program."

About Philips Medical Systems:

With the recent acquisitions of Marconi Medical Systems, Agilent's Healthcare Solutions Group, ADAC Laboratories and ATL Ultrasound, Philips Medical Systems is firmly established as the global number one or two player in most of its markets and businesses. Philips' portfolio includes x-ray, ultrasound, magnetic resonance, computed tomography, nuclear medicine and PET, patient monitoring, information management and resuscitation products, as well as a range of services which include asset management, training and education, business consultancy, financial services and e-care business services.

Philips Medical Systems has pro forma sales of Euro 6.5 billion, is represented in more than 100 countries and employs over 22,000 people. All products are backed by Philips' worldwide network of research and development and sales and service organizations. Philips Medical Systems is part of Royal Philips Electronics, one of the world's largest electronics companies. Additional information can be found at www.medical.philips.com.

About North American Scientific:

North American Scientific designs, develops and produces innovative radioisotopic products, including brachytherapy seeds and radiopharmaceuticals, principally for the treatment and diagnosis of disease. Its lead radiopharmaceutical product candidate is Apomate(TM), a kit for the preparation of Technetium Tc-99m labeled Annexin-V (a naturally occurring human protein produced by recombinant techniques). It is administered intravenously and is intended for the in vivo imaging of apoptosis and necrosis, two common forms of cell death. For more information, please visit the Company's Web site at www.nasi.net.

Statements included in this release that are not historical facts may be considered forward-looking statements that are subject to a variety of risks and uncertainties. There are a number of important factors that could cause actual results to differ materially from those expressed in any forward-looking statements made by the company including, but not limited to, uncertainties relating to drug discovery and clinical development processes, the impact of competitive products and technological changes, changes in relationships with strategic partners and dependence upon strategic partners for the performance of critical activities under collaborative agreements, uncertainties relating to patent protection and regulatory approval, the stable supply of appropriate isotopes, whether produced by the company or purchased from third-party vendors, the impact of competitive products and pricing, research and development estimates, market opportunities, risks associated with strategic opportunities or acquisitions the company may pursue and the risk factors included in the company's Form 10-K for the fiscal year ended October 31, 2001 and subsequent filings with the Securities and Exchange Commission. Any forward-looking statements contained in this news release speak only as of the date of this release, and the company undertakes no obligation to revise or update any forward-looking statements, whether as a result of new information, future results or otherwise