CHICAGO, Nov. 1, 2004 (PRIMEZONE) -- Molecular Diagnostics, Inc. (OTCBB:MCDG) ("MDI") has entered into a major strategic alliance with the biotechnology division of a Fortune 500 healthcare company. The alliance calls for the manufacture and distribution of MDI's Automated Image Proteomic System (AIPS), with the initial distribution contract to MDI at over $600,000. In addition, the two companies will collaborate and develop unique proprietary antibodies to be used in the MDI proteomic cell-based assay systems, the first of which is the CVX cervical screening system.
Under the terms of the five-year agreement, this division will manufacture the MDI-designed AIPS hardware and then distribute these systems through its international sales organization. The complementary image analysis software, running on the AIPS platform was developed by MDI for the CVX system. It is anticipated that the first AIPS systems will be shipped in either late fourth quarter of 2004 or early first quarter of 2005.
Denis M. O'Donnell, M.D., Chief Executive Officer of MDI, commented, "I am extremely pleased with this important alliance. This not only provides a means for MDI to achieve significant revenues, but just as importantly, it provides us a strategic partner who will help MDI achieve its plans for the development of innovative screening systems. This alliance will also give the company considerable support in our efforts to bring a unique cervical cancer screening system, in the form of the CVX assay, to market."
About Molecular Diagnostics, Inc.
Molecular Diagnostics develops cost-effective cancer screening systems which can be utilized in a laboratory or at the point-of-care to assist in the early detection of cervical, gastrointestinal, and other cancers. The InPath(tm) System is being developed to provide medical practitioners with a highly accurate, low-cost cervical cancer screening system that can be integrated into existing medical models or at the point-of-care. Molecular Diagnostics also makes certain aspects of its technology available to third parties for development of their own screening systems.
Certain statements in this release are forward-looking. These statements are based on Molecular Diagnostics' current expectations and involve many risks and uncertainties, such as the company's inability to obtain sufficient financing, the possibility that clinical trials will not substantiate Molecular Diagnostics' expectations with respect to the InPath System, and other factors set forth in reports and document filed by Molecular Diagnostics with the Securities and Exchange Commission. Actual results may differ materially from Molecular Diagnostics' current expectations depending upon a number of factors affecting the Company's business. These factors include, among others, risks and uncertainties detailed in the Company's periodic public filings with the Securities and Exchange Commission, including but not limited to the Company's Annual Report on Form 10-K for the year ended December 31, 2003 and its Quarterly Report on Form 10-QSB for the quarter ended June 30, 2004. Except as expressly required by law, Molecular Diagnostics undertakes no obligation to publicly update or revise any forward-looking statements contained herein.