LAKE FOREST, CA--(Marketwire - January 13, 2011) - TRIMEDYNE, INC. (OTCBB: TMED) today announced it reached an amicable settlement of its contract dispute with Lumenis Ltd. of Yokneam, Israel, under which Lumenis has paid Trimedyne $2 million, and Trimedyne and Lumenis have entered into mutual releases. While the Settlement Agreement was executed at a later date, the Settlement Agreement is dated as of August 31, 2010, the date of expiration of the OEM Agreement between Trimedyne and Lumenis. As a result, the settlement is being reflected in Trimedyne's financial statements for the Quarter Ended September 30, 2010, which is the end of Trimedyne's fiscal year.
Trimedyne and Lumenis also entered into a License Agreement, under which Lumenis will continue to pay Trimedyne 7.5% of Lumenis' sales of angled firing and side firing laser devices through July 21, 2014, for a non-exclusive license to Trimedyne's two basic U.S. Patents covering side firing laser devices. The License Agreement, although executed at a later date, was also dated as of August 31, 2010, the date of expiration of the OEM Agreement, which contained a license to the same two U.S. patents to Lumenis.
Commenting on the Settlement and License Agreements with Lumenis, Marvin P. Loeb, Sc.D., the Chairman of Trimedyne, said, "The $2 million payment by Lumenis and the royalties anticipated through July 21, 2014, will enable Trimedyne to expand its sales efforts on our current lasers and fiber-optic devices and conduct clinical studies on a new fiber-optic device covered by three of Trimedyne's other U.S. Patents."
The new fiber-optic device has already been cleared for sale by the U.S. FDA. Trimedyne plans to use it with its Holmium Lasers for the treatment of benign prostatic hyperplasia or "BPH," commonly called an enlarged prostate, the treatment of herniated ruptured discs in the spine and other uses. These conditions are typically treated on an outpatient basis at lower cost and without the usual hospital stays, bleeding and adverse effects of conventional surgery.
Trimedyne, Inc. is a leading manufacturer of proprietary medical lasers and patented fiber optic devices for performing a variety of minimally invasive procedures as a less traumatic, lower cost alternative to traditional surgery. For additional information, visit Trimedyne's website at http://www.trimedyne.com.
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act:
Statements in this news release may contain forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934, including words like "expect," "anticipate," "may," "could" and others. Such statements may involve various risks and uncertainties, some of which may be discussed in the Company's current 10-KSB Report and other SEC reports. There is no assurance such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.