Excel-tech Ltd.

Excel-tech Ltd.

May 08, 2007 07:00 ET

XLTEK Provides Update on Market Developments for its Front-Line NeuroPATH Product

OAKVILLE, ONTARIO--(CCNMatthews - May 8, 2007) - Excel-Tech Ltd. (TSX:NRV) ("XLTEK") a medical technology company that designs, develops and sells proprietary neurodiagnostic medical devices, today provided an update in light of new developments in the reimbursement to primary care physicians for nerve conduction testing using XLTEK's Front-Line NeuroPATH instruments.

As the Company disclosed on November 30, 2006, management believed that new Local Coverage Determinations (LCDs) implemented at that time would result in significantly reduced billings by physicians for diagnosing carpal tunnel syndrome using XLTEK's NeuroPATH. The new LCDs related to restrictions on reimbursement by Medicare to physicians for automatic nerve conduction testing using glove-like electrode arrays for the identification of peripheral neuropathies. The new LCDs were implemented in several States in the US, including Florida, Texas and California.

Recently the State of Florida has reinstated the reimbursement to physicians for nerve conduction testing using instruments such as XLTEK's NeuroPATH. In addition, the American Medical Association ("AMA") has instituted a formal process to determine if the use of automated new technologies, such as the NeuroPATH, would warrant the establishment of new CPT billing codes, or the revision of current codes, related to such reimbursements. XLTEK will be participating in the AMA's working group reviewing these codes.

"We are cautiously optimistic that these new developments will result in the re-establishment of some level of reimbursement to qualified physicians for the use of our NeuroPATH products," stated John Mumford, President and CEO. "However, at this time we will not incur any additional sales and marketing costs related to this product until we are certain the business is once again a viable and growing opportunity for XLTEK."

"In the meantime, we are continuing with multiple academic clinical validation studies for NeuroPATH. Initial results are as we predicted, yielding the same accuracy as manual testing. We are also advancing our efforts with the Specialist community to realize the best potential for this product to improve outcomes for patients and reduce costs for payors," Mr. Mumford added. "We look forward to being able to reintroduce the product into the marketplace under terms acceptable to all stakeholders including the AMA, Payor and Specialist communities."


XLTEK is a medical technology company that designs, develops and sells proprietary medical devices. XLTEK's core business consists of its Neuro-Diagnostic Equipment, used by neurology specialists to assist in the diagnosis and monitoring of the central and peripheral nervous systems. These core products, marketed since 1997, are sold into four main markets: the epilepsy market, the sleep disorders market, the myopathy and neuropathy market, and the surgical monitoring market. Revenue from these core market segments currently generates the majority of XLTEK's revenue. The Company is leveraging these proprietary technologies and strong market position to development new and related products targeted at complementary markets.

XLTEK is headquartered in Oakville, Ontario, Canada. The Company's common shares trade on the Toronto Stock Exchange (TSX:NRV). Additional information about XLTEK and its products may be found at www.xltek.com.

Forward-Looking Statements:

Certain statements contained in this release containing words like "believe", "intend", "may", "expect" and other similar expressions, are forward-looking statements that involve a number of risks and uncertainties. Factors that could cause actual results to differ materially from those projected in the Company's forward-looking statements include the following: market acceptance of our technologies and products; our ability to obtain financing; our financial and technical resources relative to those of our competitors; our ability to keep up with rapid technological change; government regulation of our technologies; our ability to enforce our intellectual property rights and protect our proprietary technologies; the ability to obtain and develop partnership opportunities; the timing of commercial product launches; the ability to achieve key technical milestones in key products and other risk factors identified from time to time in the Company's filings.

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