USGI Medical Announces First US NOTES Cholecystectomy Procedure

Business Wire, April 2, 2007

Transvaginal Cholecystectomy Performed at Columbia University Medical Center by a Team Led by Dr. Marc Bessler

SAN CLEMENTE, Calif. -- USGI Medical, Inc., the pioneer in the emerging field of Incisionless EndoSurgery, announced today the use of its technology in the first US NOTES procedure (Natural Orifice Translumenal Endoscopic Surgery) performed at Columbia Presbyterian Hospital, New York, NY. Drs. Marc Bessler, Peter Stevens and Dennis Fowler successfully performed a transvaginal cholecystectomy with limited laparoscopic assistance as part of a larger IRB approved study. "USGI platform technology provided critical stability and control of the transvaginal endoscope, enabling the use of flexible endoscopic instruments for dissection and retraction of the gall bladder," said Dr. Marc Bessler, Director of Laparoscopic Surgery at Columbia University Medical Center, New York, NY.

Incisionless EndoSurgery is considered the next frontier in minimally invasive surgery and has captured the interest of GI surgeons and endoscopists for a variety of surgical applications. The transvaginal surgical approach enables access to the abdominal cavity with minimal or no external incisions or scars. In this first procedure, only three tiny laparoscopic incisions were made as compared to the customary four substantially larger incisions needed for a traditional laparoscopic cholecystectomy.

"The patient felt almost no pain on recovery, other than some minor discomfort at one laparoscopic site. We believe this approach will provide patients the benefit of reduced pain, faster recovery time and fewer scars than the traditional laparoscopic alternative," said Dr. Peter Stevens, Director of Endoscopy, Columbia University Medical Center, New York, NY. "As we enroll additional patients and gain experience with this technique we expect to reduce the number of laparoscopic ports - with the goal of a true incisionless procedure," said Dr. Bessler.

A key requirement of NOTES surgery, as identified by NOSCAR (Natural Orifice Surgery Consortium for Advancement and Research), is a stable surgical platform to support and guide the flexible endoscope and instruments. Existing flexible endoscopes are limited in providing a platform for advanced surgery. "In the abdominal cavity endoscopes alone are largely free-floating and unstable, limiting the physician's ability to perform surgery. The USGI devices, with ShapeLock[TM] technology, provided a stable platform," noted Dr. Bessler.

"USGI is very pleased to be a part of this first US NOTES procedure," commented John Cox, VP of Sales and Marketing at USGI. "In the coming months we are looking forward to the application of our EndoSurgical Operating System in a range of Incisionless procedures. This transvaginal approach is an important step in furthering the development of Endolumenal and NOTES technology."

USGI, with investment funding from Alta Partners and Interwest Partners, has focused on treating gastrointestinal diseases using only the natural passageways of the body (e.g. the patient's mouth) for access. USGI has been recognized by surgeons, gastroenterologists and patient care advocates as a leader in this field.

About USGI Medical, Inc.

USGI Medical Inc, based in San Clemente, California, was founded in 2001 to develop technology for Incisionless EndoSurgery. Potential applications for Incisionless EndoSurgery include Obesity, NOTES (Natural Orifice Translumenal Endoscopic Surgery) and GERD (Gastroesophageal Reflux Disease).

www.usgimedical.com

About InterWest Partners

InterWest Partners, founded in 1979, is a leading diversified venture capital firm focused on building long-term relationships with entrepreneurs and portfolio companies. Currently investing its ninth fund, IW IX, a $600 million fund, InterWest has more than $2 billion of capital raised since inception. InterWest has 16 investing partners in Menlo Park, CA and Dallas, TX, who bring together deep domain knowledge in life sciences and information technology.

www.interwest.com

About Alta Partners

Alta Partners is a San Francisco-based venture capital firm focused on life sciences investing. Founded in 1996, the firm currently manages $2 billion in committed capital through eight venture fund programs. Alta invests in biopharmaceutical and medical technology companies across the development continuum, from company formation to later-stage opportunities, and has funded more than 110 life sciences companies to date.

www.altapartners.com