SOURCE: HealthSonix, Inc.

January 09, 2007 08:00 ET

HealthSonix Appoints CMI as Exclusive Distributor in South Korea for Its Medical Devices

IRVINE, CA -- (MARKET WIRE) -- January 9, 2007 -- HealthSonix, Inc. (PINKSHEETS: HSXI) (FRANKFURT: H7S) today announced that it has finalized a Memorandum of Understanding with CMI Medical Ltd., of Seoul, South Korea, to be the company's exclusive distributor for the AquaSonix Therapy and enSonix@home medical devices. CMI Medical will be commencing the registration process with South Korea's KFDA, the Korean equivalent of the FDA [US Food and Drug Administration], and plans to take the initial delivery of product in the first half of 2007. The first year of the agreement is estimated to be worth in excess of $3.5 million to HealthSonix once optional accessories for the device are included. A 30% annual sales escalation clause forms part of the agreement and CMI has to generate sales in excess of $4.5 million in 2008 to maintain exclusivity for the Korean market.

"The enSonix@home medical device has been extremely well received here in North America and has been given high marks for its efficacy by our patients. Ease of use and a relatively low cost is what is making this product very attractive to be used on its own or in combination with medications. South Korea is a very important market for us and foothold in the strategically important Far East market," said Ivan deSouza, Chairman of the Company.

The agreement calls for sales of 37,500 enSonix@home units in the first year of the agreement. CMI has sales and support offices in Seoul, Pusan, Kwangju, Taegeon, and Kangwon. "CMI is a significant addition to our worldwide distribution channels as they cater to both the consumer and the professional healthcare markets in South Korea," added Dieter Doederlein, Vice President of Corporate Development.

HealthSonix registered and cleared the enSonix@home medical device with the United States Food and Drug Administration (FDA) in the fall of 2006. EnSonix is designated as a class one device, the safest classification for medical devices. The product has been indicated for pain reduction and muscle relaxation.

HealthSonix, Inc. (PINKSHEETS: HSXI) (FRANKFURT: H7S) is a publicly traded medical technology company. The Company's core offerings are based on proprietary, patent pending medical technologies that use sound pressure waves to administer sub-sensory micro vibration to the human body. Precisely formatted low frequency sound pressure waves are 80% effective in treating the pain of many diseases, particularly arthritis. All treatments and products are safe, non-invasive and have no known side effects.

More information regarding HealthSonix and its products and services can be found at: or by calling the company at 1-877-622-2121.

Note: A number of statements contained in this report are forward-looking statements, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products and technologies, competitive market conditions, successful integration of acquisitions, the ability to secure additional sources of financing, the ability to reduce operating expenses and other factors not set forth herein. The actual results that the Company may achieve may differ materially from any forward-looking statements due to such risks and uncertainties.

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