10/22/2008

Medicalgorithmics

Bioheart, Inc., Announces Letter of Intent to Acquire Medicalgorithmics, Ltd.

Deal Includes Pocketecg Wireless Beat-To-Beat Heart Monitoring and Diagnostic
System

Sunrise, Fla., Aug. 1 /PRNewswire-FirstCall/ -- Bioheart, Inc.,
(Nasdaq: BHRT), announced it has entered into a non-binding letter of intent
to acquire MEDICALGORITHMICS, Ltd. and the worldwide rights to the POCKETECG,
a real-time wireless beat-to-beat, intelligent heart monitor and diagnostic
system, designed for long-term, fully-automated electrocardiogram (ECG)
arrhythmia analysis. The device, manufactured by MEDICALGORITHMICS, Ltd.,
Poland, recently received CE mark approval for marketing throughout Europe.
Under the terms of the non-binding 'letter of intent', both companies are
expected to conduct their due diligence review within the next 60-90 days.
The terms of the agreement were not disclosed.
"Similar in size to an MP3 player, patients find the POCKETECG easy to use
24-hours-per-day in the comfort of their homes and when going about their
normal activities," said Dr. Marek Dziubinski, co-founder and Chief Technology
Officer, MEDICALGORITHMICS.
POCKETECG connects to the patient via two or three electrodes and
wirelessly transmits real time data 24-hours-per-day directly to the physician
or a monitoring center so that long-term outpatient monitoring can be
conducted over days or weeks. This constant monitoring outside of a hospital
environment provides peace of mind for both physicians and patients that the
patient can be reliably cared for outside of the hospital environment.
Additionally, use of this monitoring device for at-home disease management may
positively impact health care costs by minimizing emergency hospital stays.
"We expect major growth in the outpatient cardiac monitoring market
globally," said Dr. Richard Stokvis, Europa Partners, London, who has been
advising MEDICALGORITHMICS.
POCKETECG's automated analysis allows physicians to monitor large numbers
of patients simultaneously and saves time by eliminating the need to analyze
ECG tracings once the device reports that an abnormal event has taken place.
"We believe the merger of these two companies would create important
synergies in the diagnosis, monitoring and potential treatment of heart
failure patients, specifically in the area of arrhythmias and A-Fib," said
Howard J. Leonhardt, Chairman, CEO and Chief Technology Officer, Bioheart.
"The monitoring and management of patients experiencing arrhythmias and A-Fib
represents one of the fastest-growing segments of the treatment market."
"We believe this acquisition, if completed, will deliver significant value
for patients, physicians, and both companies," says Dr. Marcin Szumowski, CEO,
MEDICALGORITHMICS.
ABOUT ELECTROCARDIOGRAMS (ECG)
An electrocardiogram (ECG) is a diagnostic test that measures the
electrical activity of the heartbeat. Every time the heart beats, an
electrical impulse called a wave travels through the heart, causing it to
contract and pump blood flow through the heart muscle.
An ECG provides physicians with two critical pieces of information they
can use to diagnose heart health. First, by measuring time intervals on the
ECG, doctors can determine how long the electrical wave takes to pass through
the heart, which indicates whether the electrical activity is normal or slow,
fast or irregular. Second, ECGs enable physicians to measure the amount of
electrical activity that passes through the heart muscle, which may indicate
that parts of the heart muscle are too large or are being overworked.
ABOUT MEDICALGORITHMICS, LTD.
MEDICALGORITHMICS, Ltd. is a privately held high-technology company,
established in 2005. The Company is focused on development of innovative
solutions and systems for signal and data processing in cardiac monitoring,
heart sounds and electrophysiology of the heart. POCKETECG is its first
product that received CE mark. Other products in the pipeline include
HeartSOUNDS(TM) and CoperniQs(TM). The Company has extensive expertise in
digital signal processing, software design for clinical applications,
electrical engineering, physics and technology transfer. MEDICALGORITHMICS
investors include New Europe Ventures and BIB Seed Fund. For information on
MEDICALGORITHMICS or POCKETECG, please contact Dr. Richard Stokvis at Europa
Partners, Tel: +44 20 74403512 or e-mail: rstokvis@europapartners.com.
ABOUT BIOHEART, INC.
Bioheart, Inc., (Nasdaq: BHRT) is committed to delivering intelligent
devices and biologics that help monitor, diagnose and treat heart failure and
cardiovascular diseases. Its goals are to improve a patient's quality of life
and reduce health care costs and hospitalizations. Specific to biotechnology,
Bioheart is focused on the discovery, development and, subject to regulatory
approval, commercialization of autologous cell therapies for the treatment of
chronic and acute heart damage. Its lead product candidate, MyoCell(R), is an
innovative clinical muscle-derived stem cell therapy designed to populate
regions of scar tissue within a patient's heart with new living cells for the
purpose of improving cardiac function in chronic heart failure patients. The
Company's pipeline includes multiple product candidates for the treatment of
heart damage, including Bioheart Acute Cell Therapy, an autologous, adipose
tissue-derived stem cell treatment for acute heart damage, and MyoCell(R)
SDF-1, a therapy utilizing autologous cells that are genetically modified to
express additional potentially therapeutic growth proteins. For more
information on Bioheart, visit www.bioheartinc.com.
MyoCell and MyoCell SDF-1 are trademarks of Bioheart, Inc.