MicroMed Technology, Inc. Announces Closing of $23 Million Series ``D'' Financing

Business Wire, Oct 2, 2002

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HOUSTON--(BUSINESS WIRE)--Oct. 2, 2002

MicroMed Technology, Inc. announced today that it has raised $23 million in a private placement of its Series D Preferred Stock. Existing investors participating in the round included Essex Woodlands Health Ventures, Charterhouse Group International, Oxford BioScience Partners and Schroder Ventures Life Sciences. New investors participating in the round included Mitsui & Co. Venture Partners, C.E. Unterberg, Towbin Private Equity Partners II, and Datascope Corp. C.E. Unterberg Towbin, a New York based investment banking firm, also represented the company as placement agent for a portion of the financing.

The company plans to use the proceeds to fund the commercialization of its principal product, the DeBakey VAD(R), in Europe where the device has received CE Mark approval. Additionally, proceeds will go to fund clinical trials in the United States as a bridge to heart transplant and as an alternative to heart transplant for patients who are not eligible for a heart transplant, due to age or co-morbidity.

Along with this Series D financing, MicroMed expects to shortly close a $5 million bank line of credit to provide additional support in capital expenditures and distribution.

The DeBakey VAD(R), a miniaturized axial flow heart pump or ventricular assist device (VAD) is named after famed heart surgeon Michael E. DeBakey, Chancellor Emeritus of Baylor College of Medicine. The device was developed through a collaboration between Dr. DeBakey; Dr. George Noon, a Methodist Heart Center cardiovascular surgeon and Baylor professor of surgery; engineers at the National Aeronautics and Space Administration (NASA); and MicroMed Technology, Inc.

"It is particularly gratifying to have the continued support of our existing shareholders and we are excited to have new investors in this round," said Dallas Anderson, president and CEO of MicroMed. "We are very pleased to close this funding."

About the MicroMed DeBakey VAD(R)

The MicroMed DeBakey VAD(R) represents the next generation in heart assist devices: miniaturization. Weighing less than four ounces and measuring 1x 3 inches, it is approximately one-tenth the size of the heart-assist devices currently in commercial use. Silent, miniaturized, less expensive devices like the DeBakey VAD(R) also appeal to a broader range of patients.

The MicroMed DeBakey VAD(R) is a miniaturized axial flow device that pumps blood from the left ventricle through a titanium inflow cannula inserted into the heart's apex. After passing through the pump, blood flows to the body through a Dacron(R) outflow graft sewn to the ascending aorta. The NASA pump invention has only one moving part. The heart pump is capable of providing blood flow in excess of 10 liters/minute.

The pump is driven by a brushless, direct current (DC) motor and is connected to a smart monitor via a percutaneous cable that is passed through the skin just above the right hip. The monitor/controller that is designed to operate the pump is powered by two 12-volt DC batteries. This unit with its two batteries weighs less than five pounds and allows the patient excellent mobility. At night, the pump is powered by a Patient Home Support System, which along with its batteries can draw power from the home's power system--allowing the patient a full nights rest.

MicroMed Technology, Inc., a privately held company, develops products to help patients suffering from congestive heart failure. The company's headquarters and ISO 9001 approved manufacturing facility are located in Houston, Texas. For more information on the study, the device, Drs. DeBakey and Noon, access www.methodisthealth.com/vad or www.micromedtech.com.

The MicroMed DeBakey VAD(R) is an investigational device and is limited by federal law for investigational use in the United States.