SOURCE: Oncologix Tech, Inc.

February 27, 2009 17:00 ET

Oncologix Announces Agreement With IUT

GRAND RAPIDS, MI--(Marketwire - February 27, 2009) - Oncologix Tech Inc. (PINKSHEETS: OCLG) announces entering into an agreement with Institut für Umwelttechnologien GmbH, a German Company ("IUT") under which the Company is licensing its proprietary technical information to a newly formed subsidiary of IUT, called "IUTM," which will engage in the design and manufacture of radiation based medical devices.

In making the announcement, Ms Judy Lindstrom, the Oncologix Chief Executive Officer, said, "We are extremely pleased and even excited at the prospect of going forward with our new partners at IUTM. We regard this new agreement as only the first step towards greater interaction between the two companies in seeking success in the medical radiation industry."

Under this agreement, Oncologix will own 10% of the equity of IUTM. It is retaining marketing rights to any product developed under the license and, under certain conditions, will have marketing rights to other radiation products developed by IUTM. The marketing rights are to be transferred to an Oncologix subsidiary in which IUTM will receive a 10% equity interest. Other terms involve the assumption of certain of the Company's obligations by IUT and the transfer to IUTM of a number of items of equipment and inventory related to microsphere development.

Ms Lindstrom went on to say that "It is especially gratifying to have this agreement after a period of great tribulation for our Company; technical difficulties, exhaustion of cash resources and, finally, a denial by the US Patent Office of key claims in the patent application of the University of Maryland - Baltimore covering the technology that had been licensed to us. While IUTM's objective is the successful development of a microsphere for the radiation treatment of cancer, the technology will not be based on what was licensed from the University of Maryland but rather from work product proprietary to Oncologix and IUTM." She cautioned, however, that "As with any technology based business, there are still risks to be overcome and ultimate success is not guaranteed. It will be especially important for us to raise enough new capital to take advantage of our marketing rights. Our agreement with IUT recognizes that matters will come up that cannot now be predicted and that we will deal with such matters on a good faith basis as they arise."

At the same time, Oncologix announced the formal termination of its Master License Agreement with the University of Maryland - Baltimore.

About Oncologix Tech Inc. and its subsidiary, Oncologix Corporation:

Oncologix Tech Inc. (formerly BestNet Communications Corp.) was formerly a provider of long distance telephone communication services but disposed of that business in January 2007.

The Company was developing a brachytherapy (radiation therapy) device, the Oncosphere System, for the advanced medical treatment of soft tissue cancers until it suspended operations at the end of December 2007 because of financial difficulties. It is based on a radioactive microparticles designed to deliver therapeutic radiation directly to a tumor site by introducing the microparticles into the artery that feeds the tumor tissue.

This release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the "safe harbor" created thereby. These statements include the plans and objectives of management for future operations, including plans and objectives. The forward-looking statements herein are based on current expectations that involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond control of the company. Although the company believes that the assumptions underlying the forward-looking statements are reasonable, any one of the assumptions could be inaccurate and, therefore, can be no assurance that the forward-looking statements included in this release will prove to be accurate.

About IUT

IUT was founded in Germany in 1992 by a group of scientists. It is located in the Berlin area and is concentrated on manufacturing special analytic devices and advanced technology developments, with a focus on environmental technology, and manufacturing of radioisotopes and radio labeled compounds. IUT maintains a website at http://www.iut-berlin.info/8.0.html?&L=1.

Contact Information

  • Contacts:
    Michael Kramarz
    Chief Financial Officer
    Tel: (616) 977-9933