Direct Medical Systems Release: Lower Cost Medical Equipment And Manufacturing Service Will Be A Welcome Relief To Hospitals And Clinics

SAN RAMON, Calif., Feb. 25 /PRNewswire/ -- Direct Medical Systems, LLC (DMS) of San Ramon has announced the signing of an exclusive agreement to import and distribute medical diagnostic equipment such as magnetic resonance imaging systems (MRI), computed axial tomography scanners (CT), ultrasound systems and other products from a joint venture between a manufacturing company in China and the government of The People's Republic of China.

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This agreement gives DMS the rights to market and distribute their equipment in all countries outside of China. DMS expects to receive FDA clearance to market in the United States by the end of this year.

DMS has also signed an exclusive agreement to provide manufacturing services that will involve DMS offering cost reductions to US companies by manufacturing their products at our R&D and manufacture facilities in China. Over the past ten years there has been a consolidation of competitive companies in this industry resulting in less competition and higher prices. DMS plans to offer their products through national and regional distributors in this country and abroad who will provide lower prices while maintaining the quality of service and support the industry has come to expect. DMS also has an exclusive distribution sales channel of over 220 direct medical sales representatives in China. Manufacturing services will be offered directly through DMS' Manufacturing Division.

"China is poised to become the next big player in this industry as well as in the electronics, entertainment and automotive industries and we at DMS are thrilled to be a part of this new economy," said Mark Falkowski, President and CEO of Direct Medical Systems.

The total world market for diagnostic imaging equipment is estimated to be over $16 billion in 2005 with the United States accounting for approximately 50% of the total market. DMS, through its distributor network, plans to become a major competitor in this market by offering customers low cost alternatives to those offered by traditional suppliers of this equipment. The company expects as much as 50% of its revenue will come from the engineering, redesign and manufacturing of other companies' products in China.

For more information, please visit the Direct Medical Systems website at http://www.dmsww.com/.

NOTE: Certain of the statements contained herein may be statements of future expectations and other forward-looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. In addition to statements which are forward-looking by reason of context, the words 'may, will, should, expects, plans, intends, anticipates, believes, estimates, predicts, potential, or continue' and similar expressions identify forward-looking statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation, (i) general economic conditions, including in particular economic conditions in the Direct Medical Systems core business and core markets, (ii) performance of financial markets, including emerging markets, (iii) the frequency and severity of insured loss events, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) the extent of credit defaults (vii) interest rate levels, (viii) currency exchange rates including the China-Euro-U.S. Dollar exchange rate, (ix) changing levels of competition, (x) changes in laws and regulations, including monetary convergence and the European Monetary Union, (xi) changes in the policies of central banks and/or foreign governments, (xii) the impact of acquisitions, including related integration issues, (xiii) reorganization measures and (xiv) general competitive factors, in each case on a local, regional, national and/or global basis. Many of these factors may be more likely to occur, or more pronounced, as a result of terrorist activities and their consequences. The company assumes no obligation to update any forward-looking information contained herein.

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CONTACT: Mark Falkowski, CEO of Direct Medical Systems, LLC,+1-925-465-1491, or markf@dmsww.com

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