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.

Largest Installation of Simbionix’ LAP Mentor Simulators Worldwide

The European Surgical Institute (ESI), one of the most modern and innovative training centers for further medical education in Europe, based in Hamburg, Germany, has installed 18 Simbionix LAP Mentor simulators.

The ESI has taken an innovative step by incorporating a large number of advanced training systems into its course curriculum focusing on minimally invasive operating techniques.

As a result, a large number of course participants will have access to practice on the most advanced virtual reality training systems.

The ESI will be using Simbionix’s Remote Mentor system to manage and track course participants’ progress on all 18 systems.

January Press Release – Simbionix and eTrinsic Form Exclusive Partnership

CLEVELAND, Ohio and Louisville, Co: Simbionix USA Corporation, a leading developer of advanced medical simulation products and eTrinsic, Inc, a developer of interactive medical education and assessment tools, today announced an exclusive partnership to develop a new generation of educational, assessment and simulation technologies and products for the medical device and physician education market. The joint development project will provide the first comprehensive, safe and cost effective technology-based surgical training solution. It will combine web-based clinical education with the most advanced ‘hands-on’ surgical simulation tools into an integrated and complete system of physician education and metrics-based assessment. “The market is ready for one solution that combines metrics-based didactic clinical education with the best in class simulation and assessment technology.” said Jacques Devaud, CEO and President of eTrinsic, Inc. In addition, the two companies will form a collaborative sales and marketing strategy to better address the needs of the surgical training market, expanding the business lines of both enterprises to accelerate growth. According to David Barkay, Simbionix CEO “Having the opportunity to work with eTrinsic, the recognized leader in web-based training, allows both companies to offer, for the first time in our industry, a comprehensive solution for physician training. The combination of our companies’ competencies opens the door to approach new markets as well as upgrading existing customers.” Both companies anticipate that the new systems will be fully accredited and healthcare professionals that successfully complete the programs will receive Continuing Medical Education credits. Additional clinical modules on all Simbionix products will be available in the near future.

Simbionix Enhances Medical Training by Providing Surgeons with Advanced Clinical-SimulationTechnology

At the University of Michigan Medical School, 21st century educational technology has caught up with 21st century medicine, with the development of the Clinical Simulation Center.

“We’re working to enhance patient safety and the quality of patient care. At the same time, we’re dedicated to the process of education and the assurance of competency, so the advanced technologies in our Clinical Simulation Center help us to meet all these goals,” says Paul Gauger, M.D., associate chair for education, U-M Department of Surgery.

Demo of the Simbionix ANGIO Mentor™ at the Medical Innovation Summit in Cleveland, October 18-20

The Cleveland Clinic Foundation hosted their second annual Medical Innovation Summit from October 18 through October 20 at the Clinic’s main campus in Cleveland . Simbionix was one of forty other Medical; Pharmaceutical, Devise and associated industries in the exhibit area. The attendees included executives from the world’s best known names in Medicine, Physicians and Entrepreneurs. The theme for the meeting “New Technologies, New Therapies, New Economics” covered topics of interest to the more than 700 attendees.

The recently announced Simbionix ANGIO Mentor created quite a stir when it was featured, in a “live feed” to all the meeting attendees as well as people around the world that were able to connect to the meeting via the internet. The same physician that performed the procedure reviewed the procedure on the simulator. He talked about the importance of Physicians being trained properly and as far as he is concerned “Simbionix leads the field not only in the quality of the graphics but in the realism of entire procedure”. The Simbionix booth was busy with Industry professionals looking for new and better ways of marketing their “wares”.

Simbionix State-of-the-Art Surgical Simulation and Training Systems were Enthusiastically Received at Several Major Professional Conferences

Prague, Czech Republic: Simbionix presented its GI Mentor™ and LAP Mentor™simulator systems at the UEGW – United European Gastroenterology Week, held in Prague on September 25-29. The participants had the opportunity to practice surgical procedures on the simulator systems, and were very enthusiastic about the products simulation capabilities of anatomy and procedures.

New York, NY – September, 2004 – Simbionix presented the URO Mentor™ and the LAP Mentor™simulator systems at the 13th annual meeting of the SLS – Society of Laparoscopic Surgery, held in New York Sep 29-Oct 2. These simulators were also featured in the post-graduate course: “The Role of Simulation in Residency Training and Continuing Medical Education.” Surgical simulators were one of the main focuses of the meeting and the URO and LAP Mentors received excellent reviews from the surgeons who used them. During the opening ceremony SLS president Dr. McDougall, spoke about the importance of surgical simulators and the need to incorporate them into curriculum. In his keynote lecture, Dr. Bell from the American Board of Surgery continued the theme and spoke on the role of simulation in education and training, and in certification. At the meeting, the URO Mentor™ and LAP Mentor™ were also part of a validation study that was initiated and conducted by the SLS. Most of the participants said that they see the surgical simulator as a useful educational tool.

Washington DC – October, 2004 – During the Transcatheter Cardiovascular Therapeutics (TCT) symposium, which was held in Washington DC on September 27- October 1, Simbionix, together with Cordis Endovascular organized hands-on carotid educational sessions on its ANGIO Mentor™ systems as part of a TCT learning center . The simulators were available at both the TCT learning center and the Cordis booth. Simbionix also took the opportunity to present a prototype of its new Renal Angioplasty module at the Cordis booth. The new Renal Angioplasty module received warm praise from participants, who were particularly impressed with the realistic simulation of the fluoroscopic images and the renal angioplastic intervention it provides.

New Orleans – LA October, 2004 – Simbionix presented its GI Mentor™ and Lap Mentor™ simulator systems at the ACS – American College of Surgeons (ACS) the 90th Annual Clinical Congress, held in New Orleans on October 10-14 . The surgeons had the opportunity to practice surgical procedures on the simulator systems, and were very enthusiastic about the products’ simulation capabilities of anatomy and procedures.

Bali, Indonesia – September 29, 2004 – Simbionix introduced its GI Mentor™ in Indonesia for the first time, at the ELSA Regional Meeting & World Congress of Gasless Laparoscopic Surgery, held in Bali on September 26-29, 2004. The GI Mentor simulator system was presented by Simbionix’s distributor for Indonesia, Schmidt BioMedTech.

Simbionix Launches its New ANGIO Mentor™ Simulator

Anaheim, Ca.: Simbionix has successfully launched its new ANGIO Mentor™ simulator system at the annual meeting of the Society for Vascular Surgery (SVS), which was held in Anaheim, Ca.

The ANGIO Mentor™ simulator, which was presented on the Cordis Endovascular booth at the SVS exhibition, was enthusiastically received by the vascular surgeons who attended the meeting.

The new simulator for interventional endovascular procedures has also received warm praise from doctors, who had the opportunity to experience the simulator capabilities in a workshop organized by the SVS before the opening of the annual meeting.