Diamics Signs $22 Million Contract With Leading Hospital Group in China

Diamics Signs $22 Million Contract With Leading Hospital Group in China

March 29, 2007

New Collector Pap-Map System Expected to Greatly Improve
and Expand Cervical Cancer Screening Worldwide


    NOVATO, Calif., March 29 /Xinhua-PRNewswire/ --
Diamics, a privately-held company developing products for
cancer screening and diagnostics, today announced that it
has signed a three year $22 million plus contract for the
use and distribution of its proprietary system for cervical
cancer screening in China.  

    Under the terms of the agreement, the Beijing Jingmin
Hospital Group will purchase no less then 1 million tests a
year. They will initially start with the company's CerCol
collector which is part of the Pap-Map(TM) cervical mapping
system. The CerCol collector received US FDA 510(k)
marketing clearance earlier this month. In China, product
registration is being funded and organized by the Beijing
Hospital Group.   

    Once registered, the CerCol collector initially will be
used in China in conjunction with the Diamics Transfer
Station, to automatically create a "touch-prep"
impression onto a pre-treated slide, which then can be
processed by normal Pap staining methods. Diamics' Pap-Map
technique is designed to create a "map" of the
sample collected from the cervix, to provide the physician
with Pap stain qualitative aspects of abnormal areas of the
cervix, to help direct colposcopy and biopsy procedures.

    The second phase of the agreement will be triggered by
the registration in China of Diamics' fully automated C-Map
cervical cancer screening system, now in testing. Once
registered, the C-MAP system (collector, transfer device,
reagents and scanner) will replace the individual CerCol
sales, with volumes reflective of the original three year
contract. The Beijing Jingmin Hospital Group will target
government institution sales and distribute via their
associated hospitals to significantly expand C-Map usage
within China. Except for their own hospital group use, they
will have certain non-exclusive distribution rights for the
C-MAP system in China.   
  
    The C-Map system is a molecular-based diagnostic device
being developed to allow for real time, `see and treat'
applications. It combines sampling with the CerCol
collector and slide preparation with discreet immunological
probes to determine the ratio between proliferating and
apoptotic cells and by means of a third marker, identify
cells that have been integrated by HPV. 

    "We are delighted to be working with the Beijing
Jingmin Hospital Group and its affiliates to help women in
China obtain proper screening for what is a highly
treatable disease if caught early," said Christine
Meda, President and COO, Diamics. "We anticipate that
the C-Map system will be a key diagnostic tool in China and
other `developing' countries as we expect the automated
system to offer a more specific, affordable result to women
who presently do not have such access." 

    China has a high incidence of cervical cancer and it
has recently become a government priority to address this
issue by promoting more widespread screening programs.  

    Cancer of the cervix is the second most commonly
diagnosed cancer in women worldwide. Approximately 500,000
new cases are diagnosed each year, 80% of which occur in
developing countries. 

    "The government here has called for greater
awareness, screening and treatment of women's health
conditions, specifically, cervical cancer, and we are very
pleased to be the first hospital to become a center of
cervical cancer screening excellence," said Dr. James
Shi, Beijing Jingmin Hospital.  "Our use of the CerCol
collector as soon as we complete registration, and later,
our use of the automated C-Map system will help ensure that
our patients are getting the best, most progressive care
possible." 

    About the CerCol Collector:

    On March 21, Diamics announced that it received 510(k)
clearance from the U.S. Food and Drug Administration (FDA)
to market its proprietary CerCol Cervical Sample Collection
System. The CerCol Cervical Collector is intended for the
collection of cervical cytology material and its transfer
for Pap analysis. The new device demonstrated > 98%
sample adequacy in multi-center clinical trials and offered
patients greater comfort over conventional collector
devices.

    About Diamics, Inc.

    Diamics Inc. is a privately owned medical device and
diagnostics company located in the San Francisco Bay Area.
The company is committed to developing, manufacturing, and
marketing cost effective, molecular-based cancer screening
and diagnostic systems that will increase long-term cancer
survival rates through early detection. Diamics' management
team has an extensive track record of success in the medical
device and diagnostics industries. The company's mission is
twofold: to help medical personnel worldwide improve the
lives of the people they treat and to generate a return on
investment for its shareholders. For more information,
please visit http://www.diamics.com .


    For more information, please contact:

     Christine Meda, President
     COO of Diamics
     Tel:   [phone]
     Email: [e-mail]

     Jennifer Larson 
     Tel:   [phone]
     Email: [e-mail]