Innomed Technologies Announces That Court Enters Preliminary Injunction Against ``SPIRITUS'' Nasal Interface

Business Wire, May 28, 2003

Business Editors/Health/Medical Writers

BOCA RATON, Fla.--(BUSINESS WIRE)--May 28, 2003

Innomed Technologies, Inc. announced that on May 20, 2003, a federal district court judge in Orlando, Florida, issued a Preliminary Injunction enjoining Eldon Mixon and Cathy Mixon and all persons in active concert or participation with them who receive actual notice of the Court's Order, from the manufacturing, making, using, marketing, distributing, offering for sale, selling or importing the "SPIRITUS" nasal cannula interface device, any substantially similar product, or any information concerning that product anywhere in Florida or elsewhere in the United States.

In addition, the Court preliminarily enjoined the Mixons from competing with Innomed for a period of two years from the date of its Order or until a final decision on the merits is rendered by the Court. Likewise, all persons in active concert or participation with them who receive actual notice of the Court's Order are immediately enjoined from aiding and abetting Mixon's breach of the non-competition covenant as well. Innomed manufactures and widely distributes its popular "NASAL-AIRE" soft nasal cannula interface, which is used in the treatment of sleep apnea, to sleep centers and other health care providers.

Innomed initially filed its lawsuit in January 2003. The lawsuit alleges that the manufacturer of the "SPIRITUS" product misappropriated Innomed's confidential drawings and trade secrets, and used Innomed's proprietary information, to copy the design of Innomed's "NASAL-AIRE" device. The lawsuit asserts that Worldwide Medical Technologies, the manufacturer of the product and majority owned by Cathy Mixon, is competing unfairly with Innomed and that its copying is likely to cause confusion among consumers. Innomed's lawsuit seeks a preliminary and permanent injunction barring the manufacture and sale of the Worldwide Medical product, called "SPIRITUS," and unspecified money damages.

Because Innomed alleged that Worldwide's competition was causing Innomed irreparable harm, Innomed asked the Court to order Worldwide to immediately stop selling its competing product while the litigation was pending. In its Order the Court found that Roger Strickland, an officer and director of Worldwide (along with Cathy Mixon), formed Worldwide for the sole purpose of improperly competing with Innomed through a nasal interface device known as "SPIRITUS," and acted in concert with the Mixons in connection with their violations of the Asset Purchase Agreement. The SPIRITUS product is being marketed by non-party defendant, Viasys Healthcare, Inc.

Shara Hernandez, president of Innomed, hailed the Court's Order and explained, "The Court's ruling is especially important because consumers were being confused by Worldwide's product due to its similar look to Innomed's product." Ms. Hernandez went on to explain that "Innomed will vigorously enforce its intellectual property rights and protect its NASAL-AIRE product, which was introduced into the respiratory treatment markets by Innomed through substantial clinical trials, investment in patient education, and other product promotions."

A copy of the Court's Order is found on the Company's web site, http://www.innomedinc.com or may be obtained by calling the Company's office at 561/558-0129.

About Innomed Technologies, Inc.

Innomed Technologies, Inc., is the leading manufacturer of nasal cannula interface devices for the treatment of obstructive sleep apnea. The company is headquartered in Boca Raton, Florida and has close relationships with sleep centers throughout the world.

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.