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DOBI Medical Announces Intention To Acquire The Assets of Dynamics Imaging, Inc.
MAHWAH, NJ, August 31, 1999 – Privately held DOBI Medical Systems announced today that it has entered into definitive discussions to purchase the assets, including all intellectual property, of Dynamics Imaging, Inc. (DII), a Mahwah, New Jersey based biomedical imaging company specializing in breast cancer detection. Such purchase would be subject to a definitive agreement and approval of the shareholders of the respective companies.
Dynamics Imaging has spent the past 4 years in the development of their Dynamic Optical Breast Imaging (DOBI) system, based on the use of Dynamic Functional Imaging to detect angiogenesis-like vascular changes associated with the growth of malignant lesions. The Company has been conducting clinical tests in a number of major U.S. and international hospitals including Massachusetts General in Boston, Columbia Presbyterian in New York, Hackensack University Medical Center in New Jersey, and in Swansea, Wales along with additional product development testing at the National Surgery Center in Moscow, Russia.
In 1998, DII held discussions with the U.S. Food and Drug Administration regarding their new technology and the steps necessary to obtain FDA approval for its marketing and sale. In the period since those meetings, through an agreement with Spencer Trask Partners, a Madison Avenue based investment banking firm, DII has been attempting to obtain additional funding to continue its efforts toward FDA approval. The result of those efforts has resulted in the prospect of a sale of DII’s assets to DOBI Medical.
The DOBI system is a unique and proprietary technology for digitized, optical imaging of the human body. In its initial application, the system will offer a low-cost, non-invasive method to detect the presence or absence of cancer in a woman’s breast. According to DOBI Medical Systems Chief Executive Officer, Phillip C. Thomas, the DOBI system will initially be used in an adjunctive role to mammography, with the objective of substantially reducing the large number of breast biopsies performed today. Invasive biopsy procedures which produce benign results is a problem estimated to cost $8 billion annually worldwide.
The DOBI technology is protected by an intellectual property portfolio of seven issued patents and a series of trademark approvals, with additional patents in development. Should this acquisition be completed, DOBI Medical hopes to complete clinical testing of the DOBI system within 24 months. Results of this testing are the basis for obtaining approval from the FDA to begin marketing the product.
DOBI Medical Systems was formed when West Palm Beach, Florida based, Lake Worth Ventures decided to investigate the purchase of the assets of Dynamics Imaging. Lake Worth Ventures is a successful privately held venture capital firm that invests in health care and Internet-related companies that target technology based high growth markets.
For further information, please contact: Phillip C. Thomas, Chief Executive Officer, 201-760-6464, email@example.com, or Shellie M. Roth, Investor Relations Partners, Inc., 973-535-8389, firstname.lastname@example.org.
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