SmartPill Diagnostics Positions SmartPill Capsule for Pre-Clinical Trials; Company Expects to Bring Innovative SmartPill Capsule to GI Healthcare Market in 2004

SmartPill Diagnostics, Inc. (www.smartpilldiagnostics.com), developer of patented SmartPill Capsule technology, today announced that the SmartPill Capsule, a first-of-its-kind, non-invasive (ingestible) device that measures GI tract pressure, transit time, and site-specific location, is ready to enter pre-clinical trials, putting the Company on track to bring the product to market in fourth quarter 2004.

Buffalo, NY (PRWEB) June 24, 2003 -- SmartPill Diagnostics, Inc. (www.smartpilldiagnostics.com), developer of patented SmartPill Capsule technology, today announced that the SmartPill Capsule, a first-of-its-kind, non-invasive (ingestible) device that measures GI tract pressure, transit time, and site-specific location, is ready to enter pre-clinical trials, putting the Company on track to bring the product to market in fourth quarter 2004.

About the size of a vitamin pill, the SmartPill Capsule uses patented microelectromechanical systems technology to enable gastroenterologists to measure patient GI tract pressure and peristaltic transit time. Doctors gain a digital map of the patients entire GI tract enabling them to precisely locate an area of abnormality, and assisting in the diagnosis of Gastroparesis, Dyspepsia, Irritable Bowel Syndrome (IBS), and other site-specific GI diseases and disorders. The patient benefits from an accurate diagnosis, better treatment at a lower cost, and a non-invasive approach to GI exploratory examinations.

Leveraging the strengths of SmartPill technology, SmartPill Diagnostics is poised to become a leading developer and manufacturer of SmartPill technology that aids in the diagnosis, definition and therapeutic intervention of gastrointestinal disorders and diseases. IBS and Irritable Bowel Disorder (IBD) collectively affect 50 million people in the US annually, at a cost of more than $30 billion US, and affect 30% of the worlds population. According to Medtech Insight, the diagnostic GI healthcare market is expected to exceed $12 billion US this year and expected to grow 10% annually over the next five years, and digestive disease costs exceed $100 billion annually.

SmartPill Diagnostics is headed by David Barthel, President and CEO. Other members of the executive management team include: Thomas White, COO, Dr. John Semler, VP of R&D, Ken Schneider, VP of Business Development, and Edward Sulick, VP of Sales and Marketing.

That weve made SmartPill part of our corporate identity reflects our focus on and the tremendous market potential of our SmartPill platform technology," said David Barthel. I couldnt be more excited about bringing the SmartPill to the GI healthcare market, enabling gastroenterologists to diagnose GI disorders and diseases with unprecedented precision, on a non-invasive basis, and at much lower cost."

Thomas White said, Weve developed a technology and product that is at the forefront of the medical industrys move toward non-invasive diagnostics and treatment. Our first generation SmartPill Capsule will afford gastroenterologists the opportunity to precisely locate site-specific diseases and disorders which will lead to a better therapeutic regimen."

The initial drug delivery and sampling technology was developed by Jerome J. Schentag, Pharm D., University at Buffalo (UB) professor of Pharmaceutical Sciences, and David D'Andrea, now SmartPill Diagnostics Senior Engineer, and licensed to SmartPill Corporation.

APPRO Healthcare, Inc. (www.approhealthcare.com) acquired the assets of The SmartPill Corporation, the medical technology company that developed the SmartPill Capsule, and then founded SmartPill Diagnostics, Inc. to commercialize and market the SmartPill Capsule. Under the terms of the asset purchase agreement, the assets of APPRO Healthcare, Inc. and The SmartPill Corporation, which include SmartPill Capsule patents and intellectual property rights, have been vested in SmartPill Diagnostics, Inc.

"UB recognized the tremendous potential of SmartPill technology, and licensed patent rights to the inventors company," said Robert J. Genco, D.D.S., Ph.D., SUNY Distinguished Professor, UB Vice Provost and head of the UB Office of Science, Technology Transfer and Economic Outreach. "Today, we are pleased to see that a strong management team has come together to move this innovative technology to market. We are looking forward to developing further collaborations between the university and SmartPill Diagnostics to support the growth of this new WNY biotech company."

Spaulding Ventures (www.spauldingventures.com) was the principal investor in SmartPill Corporation. Robert C. Logel, founder and Managing Director of Spaulding Ventures, said, We are pleased with the terms of the asset purchase, and very supportive of the idea of SmartPill and APPRO combining their relative strengths to form a new, vertically integrated development company. We have great faith in SmartPill Diagnostics business plan, technology and management team. The fact that both companies are rooted in Western NY not only strengthens this regions biotech industry, but gives me even more reason to expect other biotech investment opportunities to emerge from this community in the near future."

With the founding of SmartPill Diagnostics, the Company has opened a Series B round of financing to raise approximately $3 -- 5 million in preferred equity to fund clinical trials and productizing, secure FDA approval, and begin marketing the SmartPill. SmartPill Diagnostics expects to achieve positive EBITDA in 2004 when the SmartPill Capsule is expected to enter production. The Company expects the FDA to approve the SmartPill Capsule for sale and use in 2004.

SmartPill Diagnostics offices and product development facilities are located on the Buffalo Niagara Medical Campus at 847 Main Street, Buffalo, NY, in space that was formerly occupied by APPRO Healthcare.

About SmartPill Diagnostics

SmartPill Diagnostics, Inc. is a privately held developer and manufacturer of leading-edge SmartPill technology that aid in the diagnosis, definition and therapeutic intervention of gastrointestinal disorders and diseases. The SmartPill platform is a first-line diagnostic tool that has the capability to identify criteria, heretofore unavailable, that will greatly assist the physician in accurately diagnosing disease, provide for better treatment at a lower cost, and afford patients a non-invasive approach to GI exploratory examinations. Learn more at smartpilldiagnostics.com or call them at 716-855-1068.

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