Spencer Technologies and Terumo Cardiovascular Systems Partner to Co-develop Cerebral Monitoring Systems

SEATTLE, Wa and ANN ARBOR, Mich — September 3, 2002 — Spencer Technologies Inc., a company that develops, manufactures and markets medical products utilizing proprietary digital Power M-Mode Doppler (PMD) ultrasound technology, and Terumo Cardiovascular Systems Corporation, a company that develops, manufactures and markets products to the cardiac surgery market, today announced a strategic partnership that will provide new cerebral monitoring options to the CV surgery market.

Under the terms of the agreement, Spencer Technologies will manufacture, and Terumo Cardiovascular Systems will be the exclusive distributor, of the PMD transcranial Doppler system for the surgical monitoring of blood flow in the brain. The parties also have an agreement to pursue the development of future products utilizing the PMD technology.

The non-invasive ultrasound technology allows the CV surgeon to accurately monitor changes in blood flow during surgery, which is valuable in potentially reducing or preventing the incidence of intra-operative and post-operative strokes. The technology has significant advantages over the commonly used analog transcranial Doppler (TCD) technology, including greater accuracy, reduction of the time necessary to locate important blood vessels, and reduced training time, all of which make the technology easier to use.

"We are delighted with this partnership with Terumo in that it allows us to penetrate and serve the very important cardiac surgery market," said Scott Seidel, CEO and President of Spencer Technologies. "Monitoring brain blood flow using PMD technology could have a major impact on post surgical outcomes."

"While agreements are somewhat easy to find, true synergistic partnerships are not. The specific expertise of both our companies, when combined, will allow us to rapidly develop technologies which will help produce better patient outcomes and benefit both of our companies," said Terumo CVS' CEO and President Mark Sutter.

Spencer Technologies was co-founded in 1992 by Dr. Merrill Spencer, a pioneer in the development of diagnostic ultrasound. Spencer Technologies is dedicated to preventing a variety of adverse cardiovascular related events, including strokes, and significantly improving healthcare through the development and use of non-invasive ultrasound technologies for diagnosis, monitoring, and therapeutic effects. Spencer Technologies is involved in all aspects of ultrasound through integrated patient services, clinical research, R & D, manufacturing, and marketing their products and services.

Terumo Cardiovascular Systems Corporation manufactures and markets continuous monitoring systems and cardiopulmonary bypass products for the cardiac surgery market. It is headquartered in Ann Arbor, Michigan with manufacturing operations in Ann Arbor, as well as Elkton, Maryland; Ashland, Massachusetts; Tustin, California; and Matamoros, Mexico. It is a subsidiary of Terumo Corporation of Japan. Terumo Corporation is a premier global medical company with 2001 annual sales in excess of $1.7 billion. Terumo Corporation develops manufactures, and markets a wide range of medical products including syringes, needles, catheters, and blood bags.