CHATSWORTH, Calif., June 16, 2003 (PRIMEZONE) -- International Remote Imaging Systems, Inc. (AMEX:IRI) Chief Executive Officer Kshitij Mohan told shareholders at the annual meeting on June 12, 2003 that the new iQ(tm)200 product platform is the centerpiece of the Company's cutting-edge technology that will underpin its growth over the next few years.
"The Iris Diagnostics Division, along with our Advanced Digital Imaging Research and StatSpin(r) subsidiaries, all have made significant technological contributions to the Company in the past year," Dr. Mohan said at last Thursday's meeting. "These interrelated technologies are linked to International Remote Imaging Systems' core business and are expected to foster anticipated future growth for the Company."
The Company's new product platform, the iQ200, the only fully-automated and integrated system that performs complete urinalyses, chemistry and microscopy combined, was recently introduced to the international marketplace at the EUROMEDLAB 2003 Expo in Barcelona, Spain, a major European medical trade show. "As we had anticipated, the iQ200 generated a great deal of interest at the Expo among distributors and potential customers," Dr. Mohan said. "With marketing efforts by IRIS and our key distributors in high gear, we anticipate that the Barcelona Expo and other upcoming trade fairs in Europe and the United States will lead to an acceleration in orders for the iQ200. We expect to have more than 30 firm orders in our backlog by the end of June."
Dr. Mohan noted that International Remote Imaging Systems, Inc. expects that the iQ200 will be well received in Europe and recently signed two key distribution agreements with Grupo CH-Werfen, a leading distributor to Europe's healthcare and research laboratory markets, in addition to other smaller distribution agreements. These agreements cover 12 countries and there are active negotiations with several other distributors. "In order to give the Company greater visibility to our international presence, we have established a new wholly-owned subsidiary, IRIS Global Networks, in Milan, Italy, which will give us a base of operation in Europe," he said.
Dr. Mohan said that the anticipated launch of the iQ200 System is the end result of hard work, dedication and the technical expertise of the Company's employees. He added, "I am very proud of our entire team, and am particularly fortunate in having strong executives and senior managers."
Dr. Mohan noted that the technical expertise of the Company's Advanced Digital Imaging Research, LLC ("ADIR") subsidiary continues to be recognized for its scientific and technology excellence through the grants and contracts that it has received from the National Institutes of Health (NIH), the National Aeronautics and Space Administration (NASA), and other companies.
The StatSpin subsidiary remains on top as a leader in sophisticated diagnostic products with its laboratory devices, including the world's fastest blood separator, benchtop centrifuges, small instruments and supplies primarily for specimen processing. "StatSpin's products are an important aspect of the Company's core business and complement Iris Diagnostics' line of IVD imaging systems," Dr. Mohan said.
Shareholders attending the annual meeting and those voting by proxy re-elected two Class I members to the Board of Directors. They are Stephen M. Besbeck, President of Creative Computer Applications, Inc., and Richard G. Nadeau, Ph.D., Chairman of Vistair, Inc.
Following the annual meeting, the board of Directors appointed a sixth person to serve as a member of the Board. Richard H. Williams, Chairman of Williams Resources Group, his own company specializing in financial evaluations, personal investment and consulting to emerging growth companies, will act as a stockholder representative on the Board.
"The Board of Directors received a number of requests to consider the appointment of an additional director as a stockholder representative," Dr. Mohan said. "We understand and support the desire of our shareholders for greater stockholder representation and accelerated our plans to increase the size of the Board to six members. Dick's broad experience with public companies will make him a valuable asset to the Board."
Mr. Williams was a consultant to emerging growth companies and in 1994 helped structure, finance and take public InTime Systems International, a software company, where he also served as a Board member and negotiated a licensing agreement with Oracle Systems Enterprise Software division. InTime Systems was sold to Aris Corporation in July 1998. Mr. Williams previously served as Chairman and CEO of Restor Industries, Inc., a public company engaged in the telecommunications service area. During his tenure at Restor, Mr. Williams built sales to more than $20 million. Prior to Restor, Mr. Williams led a group of investors who took a minority interest in a $100 million fiber optic build along with Kansas City Southern Industries, the majority owner. He later sold his group's minority position to Kansas City Southern at a multiple profit in 1987, and thereafter became an equity owner in Telcom Services Inc. acquiring 50% control at that time and, until 1989, was Chairman and CEO. In addition, Mr. Williams was President of A&W Exploration Corp., an operating oil and gas company with approximately 67 producing wells and $10 million in oil and gas partnerships. Before becoming an entrepreneur in 1980, Mr. Williams was Vice President of a $100 million consumer products division of Pfizer, Inc. from 1970 to 1980. He holds a BS in Business and Finance from New York University.
Shareholders also approved an increase of common stock reserved for the Company's stock option plan to 2,900,000 from 1,900,000 shares and ratified the appointment of BDO Seidman, LLP, as the Company's independent auditors.
The Company
International Remote Imaging Systems, Inc. has an established reputation as a leader in automated urinalysis technology and image flow cytometry. The Company's Iris Diagnostics Division is a leader in automated urinalysis technology with workstations in major medical institutions throughout the world. Using a patented Automated Intelligent Microscopy (AIM) technology and Auto Analyte Recognition software (AAR), a significant reduction in the cost and time consuming steps for manual microscopic analysis can be achieved.
The StatSpin(r) subsidiary, based in Norwood, Mass., is a worldwide leader in accelerated sample preparation for blood, body fluids and urine analysis. The subsidiary makes innovative centrifuges and blood analysis products, including the world's fastest blood separator (30 seconds). StatSpin's worldwide markets include medical institutions, commercial laboratories, clinics, doctors' offices, veterinary labs and research facilities. Its bench top centrifuges are dedicated to applications for manual specimen preparation for coagulation, cytology, hematology, and urinalysis.
Advanced Digital Imaging Research, LLC, is a research and development subsidiary based in the Houston, Texas area. ADIR assists in the advancement of proprietary imaging technology while conducting government-sponsored research and development in medical imaging and software, and contract research for corporate clients.
SAFE HARBOR PROVISION
This news release contains forward-looking statements made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, the Company's views on future commercial revenues, market growth, capital requirements, new product introductions, and are generally identified by phrases such as "thinks," "anticipates," "believes," "estimates," "expects," "intends," "plans," and similar words. Forward-looking statements are not guarantees of future performance and are inherently subject to uncertainties and other factors which could cause actual results to differ materially from the forward-looking statement. These statements are based upon, among other things, assumptions made by, and information currently available to, management, including management's own knowledge and assessment of the Company's industry, competition and capital requirements. Other factors and uncertainties that could affect the Company's forward-looking statements include, among other things, the following: unexpected technical and marketing difficulties inherent in major product development efforts such as the current project to improve the Company's urinalysis workstation product line; the potential need for changes in long-term strategy in response to future developments; future advances in diagnostic testing methods and procedures, as well as potential changes in government regulations and healthcare policies, both of which could adversely affect the economics of the diagnostic testing procedures automated by the Company's products; rapid technological change in the microelectronics and software industries; and increasing competition from imaging and non-imaging based in-vitro diagnostic products. The Company refers interested persons to its most recent Annual Report on Form 10-K and its other SEC filings for a description of additional uncertainties and factors that may affect forward-looking statements. The Company assumes no duty to update its forward-looking statements.