SOURCE: HealthSonix, Inc.

March 05, 2007 08:30 ET

HealthSonix Update to Shareholders

IRVINE, CA -- (MARKET WIRE) -- March 5, 2007 -- HealthSonix, Inc. (PINKSHEETS: HSXI) (FRANKFURT: H7S).

Dear HealthSonix Shareholders:

As we begin 2007, I thought it would be useful to take the opportunity to update you on what we accomplished in 2006 and plans for 2007. As you know, HealthSonix is a medical technology company focused on developing medical devices that aid in the fight against osteoarthritis. In the past 9 months we reached several milestones, both in North America and internationally. Here are some of the highlights:

--  HealthSonix became a public company by listing its shares on the OTC
    Market in the United States [HSXI] and on the Frankfurt Exchange, Germany
    [H7S].
    
--  The company secured international orders for 180k units of the
    enSonix@home device, totaling $16 million USD in gross revenues.
    
--  All HealthSonix products were registered with the United States Food
    and Drug Administration [FDA] were assigned a class 1 designation - the
    safest classification for medical devices - and were indicated for pain
    reduction and muscle relaxation.
    
--  International patent protection was filed through a Patent Cooperation
    Treaty (PCT) application to reserve the right to later file foreign patent
    applications in other key markets around the world. With this filing,
    future applications will be accorded the same effective filing date as the
    2005 US patent application.
    
--  World renown Rheumatologist, Dr. Edward C. Keystone joined the
    HealthSonix Medical and Scientific Advisory Board. Dr. Keystone is a
    professor of Medicine at the University of Toronto; Chairman of the
    Canadian Rheumatology Research Consortium; Associate Clinical Director of
    the Canadian Arthritis Network; founder and Board member of The Arthritis &
    Autoimmunity Research Centre of the University Health Network, one of the
    most comprehensive research centers of its kind in the world; and Senior
    Consultant, Rheumatology, at Mount Sinai.
    
--  HealthSonix added 3 hospital pools to its AquaSonix Therapy Centers:
    Bloorview Kids Rehab Hospital (Toronto); Baycrest (Toronto), which is one
    of the world's premier academic health sciences centers focused on aging;
    and St. Joseph's Healthcare in Hamilton, Ontario, which now also serves as
    a clinical trial site and training program for AquaSonix Therapists.
    
--  HealthSonix also announced the successful completion of over 200,000
    of its proprietary Sound Pressure Wave treatments, which continue to be
    successful for the treatment of chronic pain associated with arthritis,
    fibromyalgia, low back pain, and soft tissue injuries.
    
--  The success experienced with fibromyalgia is noteworthy. Fibromyalgia
    is a chronic disorder characterized by widespread musculoskeletal pain,
    fatigue, and multiple tender points.  People with fibromyalgia may also
    experience sleep disturbances, morning stiffness, irritable bowel syndrome,
    anxiety, and other symptoms. According to information provided by the
    American College of Rheumatology and the Arthritis Foundation, fibromyalgia
    is becoming a common disease, affecting approximately 3% of the population.
    Women are much more likely to develop fibromyalgia than men (by a ratio of
    4 to 1). The AquaSonix Therapy treatments reduce, and in some cases
    eliminate, pain and most patients report sleeping better.
    
This year promises to be even more exciting in terms of international growth, dictated in part by recent developments at the World Congress on osteoarthritis held in December 2006. The draft recommendations tabled at the Congress suggest that optimal management of patients with osteoarthritis of the hip and knee requires a combination of non-pharmacologic and pharmacologic modalities. Doctors and their patients have been aware of these guidelines, but were limited in their choices of "non-pharmacologic" treatments.

Today, HealthSonix offers viable non-pharmacologic treatments with its proprietary sound pressure wave modalities, and has commenced preliminary discussions with several multi-national manufacturers of prescription and over the counter drugs to conduct joint clinical trials -- with a view to address the guidelines published by the American College of Rheumatology (ACR). The objective of the joint trials will be confirm that the HealthSonix Sound Pressure Wave Therapy, in combination with the pharmacologic products, can significantly reduce pain and improve the patient's quality of life, hence should become the treatment of choice for chronic pain.

The demand for the HealthSonix products should increase exponentially over the next few years, as the population segment most susceptible to chronic pain [55 years and older] is expected to double over the next 20 years, and most pain medications that address chronic pain tend to have toxic side effects if taken in large doses and over a longer period of time. The HealthSonix Sound Pressure Wave treatments have no known side effects, are non-invasive, safe, and show an 80% success rate in reducing pain.

In summary, we feel that HealthSonix will grow significantly, on an international scale for the following reasons:

--  It's a major medical discovery in the fight against the chronic pain
    of arthritis.
    
--  Clinically proven efficacy in reducing pain and stiffness.
    
--  Intellectual property, protected, through international patent
    applications.
    
--  All products are registered with the FDA.
    
--  Growing Market segment -- as baby boomers age: no need to fight for
    market share.
    
--  Plans afoot to partner with major drug manufacturers for effective
    delivery of combined therapies.
    
--  an experienced management team that has been able to bring it all
    together.
    
We are also exploring various alternatives to expand our pipeline of products, and look forward to providing more detail on the progress and status of these as appropriate. I appreciate the heartfelt support everyone has shown to HealthSonix, and will be happy to further discuss the status of our progress at any time. We are committed to the continued growth and development of our Company in a manner that is meaningful for our shareholders, our future investors and the patients who we trust and believe will one day benefit from our therapies.

We thank you for your support.

Michael Ivezic
President and CEO

Contact Information

  • Contact:
    Dieter D. Doederlein
    Phone: 1-(800) 622-2121