iTech Medical Announces Equity Financing of $2.2 Million

HUNTINGTON BEACH, Calif., Mar 25, 2010 (BUSINESS WIRE) -- iTech Medical, Inc. /quotes/comstock/11k!imsu (IMSU 0.45, 0.00, 0.00%) (FWB: 0IM), a medical information technology company, is pleased to announce that it has entered into a financing agreement with a European investor for $2.2 million of equity financing over the next 12 months. The investor has the option to provide another $1.0 million of equity financing during the following six months. The Company intends to use the proceeds for working capital and to complete the clinical and regulatory work on its proprietary Muscle Pattern Recognition (MPR) System and introduce the MPR System in North America and Europe, anticipated to be in the fall of 2010.

"The proceeds from this financing are expected to provide us with the resources we need to achieve our near-term clinical and regulatory goals," said Wayne Cockburn, President and CEO of iTech Medical. "We believe this new investment in iTech Medical is a testament to the market opportunity for our technology and a reflection of the commitment of our investors. With a strong management team, vision and a disruptive technology, we're pleased to be in a position to help fuel the next stage of iTech Medical's growth."

Under the financing agreement, the investor has agreed to purchase, on a monthly basis through March 2011, a total of 4 million shares of common stock for $0.30 per share and a total of 2 million shares of common stock for $0.50 per share. In connection with those purchases, the investor will receive warrants to purchase a total of 6 million shares of common stock at prices ranging from $0.40 per share to $0.80 per share, expiring between August 31, 2013, and February 28, 2014. Pursuant to the financing agreement, the investor may elect to pay the purchase price for the shares of common stock in either United States dollars or euros. These purchase prices were based on the United States dollar/euro exchange rate on December 5, 2009. This release reflects the purchase obligation in United States dollars.

In addition, for a 60-day period, commencing upon the date the Company files with the United States Food and Drug Administration its 510(k) application covering its MPR technology, the investor will have right to elect to provide an additional $1.0 million of equity financing through the purchase of common stock at $0.50 per share over a six-month period. In connection with those purchases, the investor will receive warrants to purchase a total of 4 million shares of common stock at prices ranging from $0.40 per share to $0.80 per share, expiring October 31, 2014.

About iTech Medical

iTech Medical, Inc. /quotes/comstock/11k!imsu (IMSU 0.45, 0.00, 0.00%) (FWB: 0IM) is engaged in the research and commercial development of healthcare information systems and technologies. To date, the Company has focused on developing a proprietary platform called Muscle Pattern Recognition (MPR), a unique clinical tool for the analysis of muscle function. MPR is a patented clinical tool that analyzes patterns of muscle recruitment. It provides detailed physiological information on muscle function that can assist in the diagnosis and treatment of back and neck injuries and illnesses.

For the latest information on iTech Medical, please visit our website at www.iTechMedical.com.

Forward-Looking and Cautionary Statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that reflect management's current views and estimates regarding future market conditions, company performance and financial results, business prospects, new strategies, the competitive environment and other events. You can identify these statements by the fact that they use words such as "anticipate," "believe," "estimate," "expect," "intend," "project," "plan," "outlook," and other words and terms of similar meaning.

These statements involve a number of risks and uncertainties that could cause actual results to materially differ from the potential results discussed in the forward-looking statements. Among the factors that could cause actual results and outcomes to differ materially from those contained in such forward-looking statements are the following: general economic conditions, acquisitions and development of new businesses, divestitures, product availability, sales volumes, pricing actions and promotional activities of our competitors, profit margins, weather, changes in law or regulations, foreign currency fluctuation, availability of suitable real estate locations, our ability to react to a disaster recovery situation, and the impact of labor markets and new product introductions on our overall profitability.

A further list and description of these risks, uncertainties and other matters can be found in the company's annual report and other reports filed from time to time with the Securities and Exchange Commission, including, but not limited to, the Company's Annual Report on Form 10-K filed with the SEC on April 15, 2009. iTech Medical cautions that the foregoing list of important factors is not complete and assumes no obligation to update any forward-looking statements that it may make.

SOURCE: iTech Medical, Inc.