SOURCE: CLX Medical, Inc.

October 15, 2008 09:43 ET

CLX Medical, Inc. Announces Agreement to License Additional Point-of-Care Diagnostic Testing Devices and the Outcome of the HandiLab-C Chlamydia Laboratory Study

MURRIETA, CA--(Marketwire - October 15, 2008) - CLX Medical, Inc. (OTCBB: CLXN), which is focused on the marketing and distribution of unique medical diagnostic testing products, today announced a letter of intent to license additional medical diagnostic testing devices from Intellect Holdings, Ltd., research and development company focusing on the development of innovative products for the healthcare industry.

In addition to the rapid point-of-care products CLX Medical has targeted to license for marketing and distribution in the United States and worldwide markets, the letter of intent includes an agreement to develop a unique CLIA waivable device for the detection of Chlamydia utilizing Intellect Holdings' proprietary device system.

"As part of CLX Medical's core focus to identify and license or acquire unique medical diagnostic testing products for marketing and distribution in the United States and worldwide markets, we continue to seek additional licensing and acquisition candidates, and the agreement with Intellect Holdings provides another source for products that may be represented by CLX Medical," stated Vera Leonard, chief executive officer of CLX Medical. The letter of intent will also allow CLX to pursue a parallel path in preparing a product for the estimated $300 million CLIA waived Chlamydia market.

The results of the laboratory tests validating the efficacy of the HandiLab-C Chlamydia test were inconclusive. Presumably, the chlamydia organisms grown in human tissue cell cultures failed to generate sufficient enzyme to trigger the response in the testing devices using this type of laboratory testing approach.

"This is certainly a disappointment," stated Vera Leonard, CEO of CLX. "We, and our shareholders, have invested a great deal of resources to capitalize on this very lucrative market opportunity. Our strategy at this time will be to go forward with the ThyroTest® acquisition and focus aggressively on its launch as a means of generating revenue and building value for our shareholders. In the meantime, we will continue our work on the HandiLab-C product as a secondary focus.

"With the letter of intent announced today, we will pursue, in parallel, an alternative technology that we believe could also allow us to pursue the CLIA waived chlamydia testing market. It is possible that this product would be ready for clinical trials sooner and face fewer regulatory hurdles than the HandiLab-C product, so we are pleased to have this alternative available to us," added Ms. Leonard.

Intellect Holdings, Ltd. is a strong research and development company focusing on to the development of innovative products for the healthcare industry. Among the innovative new products under development are kits for early cancer detection such as breast cancer monitoring, strep throat detection, prostate PSA and flu virus screening.

CLX Medical holds a 51% equity interest in Zonda, Inc., which has developed medical diagnostic tests for medical and non-medical markets, including a rapid point of care test for chlamydia. The company has also entered into a definitive agreement to acquire ThyroTest®, a rapid thyroid stimulating hormone (TSH) screening device used for the detection of hypothyroidism in adults, a common thyroid disease. ThyroTest® is FDA cleared and has also achieved CLIA waived status, so the test can be administered in the more than 100,000 CLIA waived doctors' offices in the U.S., as well as in any non-waived laboratory.

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About CLX Medical, Inc.

CLX Medical, Inc. (www.clxmedical.com) holds a 51% equity interest in Zonda, Inc. (www.zondaincusa.com), which has developed several rapid point of care tests for medical and non-medical markets, including a rapid test for chlamydia. CLX has also entered into a definitive agreement to acquire ThyroTest®, a rapid thyroid stimulating hormone (TSH) screening device used for the detection of hypothyroidism in adults, a common thyroid disease. CLX Medical is focused on the successful worldwide distribution of these and any additional products it may acquire or license.

All statements included in this release, including statements regarding potential future plans and objectives of CLX Medical, Inc. are forward-looking statements. Such statements are necessarily subject to risks and uncertainties, some of which are significant in scope and nature beyond CLX Medical's control. There can be no assurance that such statements will prove accurate. Actual results and future events could differ materially from those anticipated in such statements depending on many factors. Historical results are not necessarily indicative of future performance.

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