Q4 2006: PreOp Mentor Simulator Another “Industry First” Success for Simbionix

Cleveland, Ohio and Lod, Israel: Simbionix unveiled its revolutionary PreOp Mentor Simulator (WIP) for a sneak preview during a “Live Broadcast” at Transcatheter Cardiovascular Therapetuics (TCT) in Washington, DC where Dr. Bill Gray successfully performed a carotid intervention at Columbia University, NY on a patient after simulating the procedure on the PreOp Mentor a day earlier based on the actual anatomy of that patient. The PreOp case was performed in collaboration with PolyDimensions, Germany, a company specializing in high quality anatomical 3D-reconstruction from CT-Data.Dr. Giora Weisz, an Interventional Cardiologist from Cardiovascular Research Foundation and Columbia University Medical Center stated, “I believe patient-based simulation can significantly improve patient safety by training physicians on the patient’s own anatomy and by practicing with the appropriate devices before the actual procedure, resulting in shorter procedure time, less unnecessary equipment, and ultimately, higher success rates and less complications.” During the live broadcast, the Cath Lab team said they believe that as a result of the patient-based training, they used less contorts, less x-ray time and most importantly, were able to improve patient safety.

Ran Bronstein, Simbionix President stated, “until now, simulation was limited to generalized models of patients, however, with the PreOp Mentor, planning and simulation are done beforehand based on the patient’s individual anatomy, allowing for better preparation and leading to better results.”

In addition to the PreOp Mentor Simulator, scheduled for Commercial Release in 2007, Simbionix showcased their new advanced Coronary Module at TCT. The Coronary Module simulates coronary interventions such as, PTCA, stenting and left ventricular angiography. The new module uniquely features the simulation of a patient’s vital signs in response to actual simulated coronary complications while the ANGIO Mentor Mini is a portable simulator to be used as a “Personal Trainer” for smaller courses or for on-site training.

Success for Simbionix at the September European Conferences

Physicians practiced peripheral vascular interventions on the ANGIO Mentor and experienced the newHernia Repair Module on the LAP MentorAt CIRSE in Rome, Italy, Simbionix participated in the CIRSE Simulation Gallery, enabling participants to experience hands-on the Simbionix ANGIO Mentor. Physicians trained on the Renal, Carotid, SFA and Iliac Intervention Modules, enthusiastically practicing the complete range of peripheral vascular intervention techniques.

During the same week, at the EAES in Berlin, Germany, Simbionix premiered the new Ventral Hernia Repair module on the LAP Mentor. Two validation studies on the GI Mentor and the URO mentor were presented as posters and won Best Poster Awards from amongst 500 posters.

Simbionix Announces Immediate Availability of its Newest Module for Training Laparoscopic Hernia Procedures

Cleveland, OH, USA, and Lod, Israel; Simbionix announces the availability of a new add-on module for the teaching and practice of laparoscopic hernia procedures. First of its kind in the industry, the LAP Hernia module is the latest addition to the suite of laparoscopic procedures developed for the LAP Mentor. The Hernia module features real-life clinical treatment scenarios and skills assessment tools for the teaching and practice of laparoscopic hernia procedures. The Simbionix LAP Mentor, with its intuitive user interface, represents the industry’s most advanced training content, 3-D real-life graphics and ergonomically designed hardware

The LAP Hernia module is targeted for the training of surgeons, who, in a series of real-life case studies, will be able to practice laparoscopic incisional hernia treatment procedures, including adhesiolysis and handling and fixating mesh,. The Hernia add-on module joins the growing library of software modules for the Simbionix LAP Mentor simulation product, including Essential LAP Skills, Suturing and Lap Chole modules.

“The new module for training LAP ventral hernia procedures reduces the need to train on animals, and then patients later on. Using simulation to learn and practice the various clinical scenarios positively impacts patient safety”, stated Jan F. Kukleta, MD, from the Laparoscopic Training Center in Zurich, Switzerland.

The LAP Hernia module will be launched in Europe at the EAES in Berlin, Germany on September 13-16 and at the American College of Surgeons (ACS) Chicago, Ill, October 8-12 (booth # 239).

Simbionix is committed to continuously innovating and growing its product offering. The wide range of training modules, case studies and scenarios is developed in response to the growing importance of clinical training and education for the improvement of patient care. As a world leader in the field of simulation-based medical education and training, Simbionix continues to provide professional training solutions in a timely and efficient manner.

Simbionix’ New CFO Brings Strong International Financial and Legal Background

Cleveland, OH and Lod, Israel: Simbionix USA Corporation (Simbionix), a developer of medical simulators and hands-on curriculum for training medical professionals, announced that Boaz Tal has joined the company as Chief Financial Officer (CFO). Boaz will work in the Lod, Israel office managing global financial operations, including the Cleveland, Ohio and Denver, Colorado locations.

Boaz brings broad financial knowledge and experience to Simbionix. For the last 9 years, Boaz was employed by the prestigious law firm of Herzog Fox & Neeman, Israel, specializing in international ventures, M&A, and commercial transactions. Prior to his years at Herzog Fox & Neeman, Boaz spent 6 years focused on international corporate financial management. Boaz’ career has allowed him the opportunity to work with many international medical technology companies, a perfect fit with Simbionix.

Gary Zamler, CEO, stated, “Simbionix is looking to the future and to cementing our place as the leader in the simulation and medical content and education market. Adding Boaz to the team, with his diverse background and talents, fits with our long term strategic plan of continuous growth and our plan to prepare for an IPO.” Chairman of the Board, Dr. Avshalom Horan said, “Boaz’ recruitment following Gary’s appointment as CEO in April is another step in building a strong management team that can grow the company to the next level.” President and COO, Ran Bronstein, explained, “We anticipate a smooth transition as Aurel Dzur, CFO, assists Boaz until June 19, 2006.”

Since its inception in 1997, Simbionix has raised approximately $11 million. Investors include, among others, Early Stage Partners and Koor Corporate VC. The Company is now in the process of raising additional financing in order to fund the global rollout of its Total Solution simulation product offering.

Simbionix is a global leader in medical simulation technology. The company’s mission is to provide state of the art, simulation-based medical education and training systems, and to set the standard for minimally invasive surgical training and performance. Since the successful introduction of the GI Mentor™ to the world market in 2000, Simbionix completed four other medical training simulators, which provide medical experts with hands-on training in a comprehensive array of Minimally Invasive Surgery procedures; the URO Mentor™ – a simulator for endourology procedures, the PERC Mentor™ for percutaneous access procedures, the LAP Mentor™ – a multi disciplinary simulator for laparoscopic skills and surgery procedures, and the recently launched and enthusiastically received ANGIO Mentor™ for interventional cardiologists, interventional radiologist and vascular surgeons that can use it to perform complete procedures, as well as acquiring basic skills.

eTrinsic, a Division of Simbionix USA, Relocates to a New and Exciting Facility in Denver, Colorado

Cleveland, OH and Denver, CO: eTrinsic, a division of Simbionix USA, a leading developer of online education and training products serving the medical device industry and medical education sectors, has relocated their offices from Louisville, Colorado to the historical LoDo district of Denver, Colorado.

The move places eTrinsic in one of the most vibrant and popular areas of the city, offering greater access to a broad range of talent. Jacques Devaud, President, stated, Moving to Denver, and especially to a central, highly accessible and popular area, will make it easier for eTrinsic to attract and retain the best class of employee. This is important as we grow to accomplish our business goals.

Gary Zamler, Simbionix CEO, added “The investment in our division’s new office facility serves as an example of our expanded commitment to the important US market, our comprehensive Content & Education product strategy, and our confidence in eTrinsic’s ability to implement this strategy. We want to remain the world leader in the field of medical education and simulation technology, and to continue to offer the most comprehensive medical training experience available, using the latest software and hardware technology.”

eTrinsic, a division of Simbionix USA., is the leading developer of e-learning content and proficiency measurement technology exclusively for the medical sector, with primary focus on developing web-enabled simulations of highly complex medical devices, equipment, and procedures. eTrinsic brings deep medical domain expertise to each project, along with seasoned development and technology teams.

Simbionix is a global leader in medical simulation technology. The company’s mission is to provide state of the art, simulation-based medical education and training systems, and to set the standard for minimally invasive procedural training and performance measurement. Since the successful introduction of the GI Mentor™ to the world market in 2000, Simbionix has completed four other medical training simulators, which provide medical experts with hands-on training in a comprehensive array of Minimally Invasive procedures; the URO Mentor™ – a simulator for endourology procedures, the PERC Mentor™ for percutaneous access procedures, the LAP Mentor™ – a multi disciplinary simulator for laparoscopic skills and surgery procedures, and the recently launched and enthusiastically received ANGIO Mentor™ for interventional cardiologists, interventional radiologists and vascular surgeons. All the Mentor line of products can be used to perform complete procedures, as well to acquire basic skills.

Early Stage Partners LP is the most active early stage venture capital fund based in Cleveland, Ohio. Early Stage Partners was formed to fill an unserved market need in financing the commercialization of world-class technologies. The company invests primarily in promising opportunities in the life sciences; enterprise software, supply chain management, polymers and advanced materials.

Koor Corporate Venture Capital, (NYSE:KOR, TASE) is the venture capital arm of Koor Industries – one of the Israel’s largest investment-holding company ($1 billion). KVC invests in the areas of telecommunications technology, internet infrastructure, enterprise software and life sciences.

Shestra (Switzerland), one of the earliest investors in Simbionix. is a Geneva-based private equity banking group.

Gary Zamler to Lead Simbionix to its Next Stage of Growth to Become a Leading International Medical Simulation and Training Solutions Provider

Cleveland, OH and Lod, Israel, February 2006 – Simbionix USA Corporation (Simbionix), a developer of medical simulators and hands-on curriculum for training medical professionals, today announced that Gary Zamler will join the company as Chief Executive Officer (CEO) on April 10th, 2006.Gary brings a rich background of over 20 years of global distribution experience working within the medical technology industry. Most recently Gary was the Director of Sales for the rapidly growing Given Imaging Ltd (NASDAQ:GIVN), which pioneered the field of wireless Capsule Endoscopy. During his 3 1/2 years at Given, which saw revenues grow from $9M to $87M, Gary was involved in the distribution of Given Imaging products throughout the globe, in North and South America, Europe, and most recently focused on Asia where he has been involved in developing the company’s distribution channel strategy in China and other emerging Asian markets.

Prior to joining Given, Gary held key management positions in several leading International Medical Diagnostic Imaging companies: Country Sales Manager for GE Medical Systems, Israel, CT Global Sales Manager, for Marconi Medical (former Picker International), VP of Commercial Operations for Elscint’s largest subsidiary in the USA, and Managing Director and General Manager for Elscint’s Diagnostic Imaging operations in Southern Africa.

“We are delighted with the energy and global sales expertise Gary brings to Simbionix,” said Simbionix Chairman, Dr. Avshalom Horan. “With his extensive experience in high growth medical technology companies, I’m confident Gary will lead our existing management team to help Simbionix become a global leader in medical simulation and training solutions.”

Gary added, “In my view, Simbionix possesses two critical elements for success – a world class team of dedicated professional people, and a very strong technology platform. I am extremely excited about the opportunity to join such an innovative company, especially when the Industry now understands the importance of medical simulation and requires solutions for physician training. Looking ahead, I see the potential for substantial growth with the introduction of Simbionix’s “Total Solution”, which encompasses web-based didactic training with hands-on simulation training and immediate feedback to the medical professional. These tools will provide the medical community with a new and more effective way to learn complex minimally invasive procedures.”

“Gary’s proven team-building skills and global sales and marketing experience bring additional depth to our team. We are excited to have Gary join us to help drive the company to the next level as a leading international medical simulation and training solutions provider,” commented Ran Bronstein, Founder, President and Chief Operating Officer.

Since its inception in 1997, Simbionix has raised about $11 million including investment from the institutional investors Early Stage Partners and Koor Corporate VC. The Company will seek to raise additional financing later in 2006 or during the first half of 2007, in order to fund the global roll out of its Total Solution simulation product offering.

Simbionix Acquires eTrinsic, Inc.

CLEVELAND, Ohio and Louisville, CO (January 12, 2006) – Simbionix USA Corporation, a leading developer of advanced medical simulation products, today acquired all assets and employees of eTrinsic, Inc, a developer of interactive medical education and assessment tools. The terms of the acquisition were not disclosed.

The companies have been working closely as partners for a year developing technologies and products for the medical device and physician education market. The acquisition will speed development of a wide-ranging technology-based training, education and assessment solution. Surgeons and interventionalists are increasingly relying on simulation-based training to learn how to use new products and procedures, to practice for challenging procedures, and to maintain advanced skills. The acquisition gives Simbionix greater access to educational content to be delivered over its expanding installed base of medical simulators.

We’re very pleased to join with what we consider to be the clear market leader in terms of advanced technology, innovation and breadth of capability, said Jacques Devaud, CEO and President of eTrinsic, Inc. Devaud will continue as President of eTrinsic and will also have the title of VP of Curriculum Development at Simbionix. eTrinsic will become a division of Simbionix.

“Simbionix has been continuously innovating and improving its products and services to meet changing market requirements. After working closely with eTrinsic for about a year, it became clear that by merging our capabilities, technologies and client relationships, we could more quickly develop and deliver a market-changing solution,” said Ran Bronstein, President of Simbionix. “While both companies have been leaders in the medical education and training market for eight years, the market is still in its infancy in terms of both capabilities and revenue growth. We intend to increase our pace of innovation to develop an advanced and comprehensive solution for physician and sales force education and training.”

Only a Year After its Introduction, the Simbionix ANGIO Mentor Provides Physicians All Over the World with Safe Endovascular Interventions Expert Training.

During the Society for Vascular Surgery (SVS) symposium, which was held in Chicago IL, on June 16, Simbionix, together with Cordis Endovascular, organized hands-on carotid educational sessions on its ANGIO Mentor™ systems.

With the available 12 systems, a large number of participants had access to practice on the most advanced virtual-reality training systems of carotid stenting. Attendees were offered CME credits through SVS.

The educational sessions were a success. All the sessions were fully booked, and attendees were impressed with the system’s capabilities.

Simbionix Founders Announce Their Successors

As part of their original, long-term plan, David Barkay, founder and currently President and CEO and Edna Chosack, founder and currently Vice President of Strategic marketing are leaving the company to pursue new entrepreneurial challenges. Assuming the Simbionix presidency will be company Co-founder Ran Bronstein.Barkay, Bronstein and Chosack started Simbionix in 1997. Mr. Barkay and Ms. Chosack, along with their son, will relocate to Montreal to begin their new endeavors. Prior to joining the company, Bronstein was R&D manager of Kidum Multimedia Ltd., where he was responsible for the development of computer games. Earlier, he worked as projects manager at Tecnomatix Ltd. dealing with 3D graphics and robotic simulation.

“I look forward to this excellent opportunity to assist in taking our company to the next level,” stated Bronstein. “My previous focus has been on the development of our technology and I am now being offered an opportunity to assume more responsibility.”

“We will dearly miss David and Edna,” added Simbionix Chairman Avshalom Horan. “They have made an enormous difference in creating the great momentum we are presently experiencing in the marketplace.”

“With a $8 million revenue run rate and profitable operations, I felt it was the right time to move on and let the team grow,” said Barkay. “It’s been gratifying to see Simbionix move from the start-up stage and into sales, but it’s been particularly good to see the increased acceptance of simulation training in the medical community.”

Dr. Yael Friedman who has worked closely with Ms. Chosack as a Simbionix employee since 2002, will assume her responsibilities. “Dr. Friedman is a great asset for the company and provides a very deep competency in the development of meaningful medical content. She is supporting one of the best R&D teams in the industry,” said Chosack.

Simbionix Continues to Innovate

During April, Simbionix has presented its new developments both for the ANGIO Mentor and the LAP Mentor simulators.

After a successful launching in the US with more than 30 systems sold, The ANGIO Mentor was presented for the first time in Europe during the Chairing Cross at the Imperial College, London, UK. The carotid intervention and the new renal intervention modules received warm praises from the physicians in the meeting.

On April 13th, during SAGES 2005 in Florida, USA, Simbionix presented a prototype of the LAP Mentor’ suturing module. Physicians who have tried the suturing module were impressed with both the thread and the environment simulation, which they found extremely promising.