NovaRay Medical, Inc.

NovaRay Medical, Inc.
TCL Medical Systems

TCL Medical Systems

February 15, 2012 07:00 ET

NovaRay Medical, Inc. Enters Into Distribution Agreement for China and Southeast Asia With TCL Medical Systems for NovaRay's ScanCath™ Cardiovascular Imaging System

NEWARK, CALIFORNIA and BEIJING, CHINA--(Marketwire - Feb. 15, 2012) -

NovaRay Medical, Inc. of Newark, California, USA ("NovaRay"), developer of high-performance medical x-ray fluoroscopy systems, announced today that it has entered into a collaboration agreement with TCL Medical Systems / Beijing Sinopharm Hundric Medline Info. Tech. Co., Ltd of Beijing, P.R. China ("TCL Medical") for joint product development, manufacturing and distribution in China and Southeast Asia of NovaRay's ScanCath™ cardiovascular system. NovaRay has developed a new cardiovascular catheterization imaging system incorporating a number of unique and proprietary developments that addresses the growing issues of radiation hazards in the cath lab while providing the image quality capabilities not available with current imaging systems.

NovaRay with its development partner, Triple Ring Technologies, Inc., and TCL Medical will collaborate on product development of the ScanCath™ system for the commercialization and manufacturing for China and the rest of world markets.

TCL Medical has paid NovaRay an undisclosed amount for an exclusive market distribution rights for ScanCath™ products for the China and Southeast Asia market.

"The completion of this transaction with such a distinguished partner is an endorsement of NovaRay's unique and exciting ScanCath™ cardiovascular imaging system," said Marc Whyte, President and Chief Executive Officer of NovaRay. "With our partnership with TCL Medical, NovaRay is now well positioned to bring our ScanCath™ system, based on our proprietary technology, to market. We plan on rolling out ScanCath™ systems starting early next year in various parts of the world."

Hu Hai, General Manager of TCL Medical adds: "NovaRay's ScanCath™ systems positions our company at the forefront of imaging technology in China's rapidly growing medical imaging market. ScanCath™ will enable us to capture a significant share of that growing market."

The worldwide market for medical cardiovascular x-ray fluoroscopy systems is approximately US$1.8 billion per year. The demand for cardiovascular fluoroscopy systems remains strong due to the continued growth of image-guided minimally invasive procedures.

Interventional cardiology procedures require sophisticated x-ray imaging to accurately deploy small devices such as stents. These procedures can be lengthy and are associated with high radiation exposures to patients and cath lab staff. NovaRay's ScanCath™ system is designed to offer high image quality and unique imaging capabilities while providing up to 90% reduction in radiation exposure to the patient and up to 80% reduction to the cath lab staff.

Heartstream Corporate Finance B.V. of Naarden, the Netherlands, acted as advisor to NovaRay on the transaction.

About NovaRay (http://www.novaraymedical.com/): NovaRay is a developer of high-performance x-ray imaging systems and is a Delaware corporation based in Newark, California. NovaRay works closely with Triple Ring Technologies, Inc. for development of the products and manufacturing of the imaging chain (http://www.tripleringtech.com/).

About TCL Medical (http://med.tcl.com/en/): TCL Medical Systems / Beijing Sinopharm Hundric Medline Info. Tech. Co., Ltd of Beijing, P.R. China ("TCL Medical") is a subsidiary of TCL Corporation. TCL Corporation is a large public company established in 1981 and is a global leader and technology innovator in consumer electronics, mobile communications, and home appliances. TCL Corporation formed TCL Medicalin 2009 with the intent to build a large medical business in Asia with cutting edge medical technology and is based in Beijing China.

Certain statements in this release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. They include statements regarding continued growth and existence of issues related to radiation hazards, unavailability of image quality capabilities in imaging systems, continued collaboration among NovaRay, Triple Ring Technologies, Inc. and TCL Medical, ability to bring ScanCath system based on proprietary technology to market, timing of ScanCath systems roll out, continued rapid growth of China's medical imaging market, ability to capture significant share of China's medical imaging market, continued strength of cardiovascular fluoroscopy systems demand, continued growth of image-guided minimally invasive procedures and other statements regarding NovaRay's or management's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. Factors that could cause actual results to differ materially include risks and uncertainties, including, but not limited to, the possibility that NovaRay may not be able to secure additional funding, the possibility that NovaRay may not be able to produce and market successfully any of its products, the possibility that NovaRay's products will not be sufficiently accepted by physicians, hospitals and other potential customers, the possibility that NovaRay will not obtain or maintain necessary regulatory clearances or approvals relating to NovaRay's products, and other factors, including those factors described in the Forms 10-KSB and S-1 for NovaRay and other filings NovaRay filed with the Securities and Exchange Commission. Any forward-looking statements contained in this document speak only as of the date hereof, and NovaRay does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this document, whether as a result of new information, future events or otherwise.

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