07/27/2004

Novasys Medical Receives Additional Financing From Ascension Health Ventures

NEWARK, California, July 27th, 2004 - Novasys Medical, Inc., a developer of new therapies and technologies for the treatment of female pelvic disorders, today announced a $2 million investment from Ascension Health Ventures. Ascension Health is the nation's largest Catholic and largest nonprofit health system, serving patients through a network of hospitals and related health facilities providing acute care services, long term care, community health services, psychiatric, rehabilitation and residential care in 20 states.

"We feel strongly that the Novasys Medical non-surgical treatment will fill a large unmet need for women not wanting surgery to treat their stress urinary incontinence "says Tara Butler MD, Investment Associate at Ascension Health Ventures. "We are excited about entering into this new relationship with Novasys Medical".

"We are pleased that Ascension Health Ventures has joined our roster of top-tier investors, which includes JPMorgan Partners, Invesco Private Capital, Delphi Ventures, Onset Ventures, Alloy Ventures, Affinity Capital Management and GBS Partners" said Debra Reisenthel, President and CEO of Novasys Medical. "Ascension Health is one of the nation's leading health systems, and their expertise will help assist us in learning about the needs of today's hospitals and doctors as we prepare to commercialize the Novasys Micro-remodeling System. This $2 million supplements the company's $25 million in Series C financing, which was announced in April 2004".

Stress urinary incontinence, often known as SUI, is the involuntary leakage of urine associated with sneezing, laughing, and other physical activities. SUI affects more than nine million American women and more than 50 million women worldwide. While both surgical and non-surgical SUI therapies are currently available, the former raise safety and recovery concerns and the latter compliance and effectiveness issues for many patients.

About Ascension Health Ventures

Ascension Health Ventures, LLC was launched in 2001 as a wholly-owned subsidiary of Ascension Health. AHV provides strategic venture funding to companies that offer innovative new products, services and technologies that will help Ascension Health's ministries serve their communities and transform the future of healthcare. AHV considers investment opportunities that offer operational, clinical or financial benefits in priority areas for Ascension Health's hospitals and other facilities.

About Ascension Health

Ascension Health is the nation's largest Catholic and nonprofit health system, with more than 100,000 associates serving in 67 acute care hospitals and dozens of related facilities in 20 states and the District of Columbia. Consistent with its mission to serve all people with special attention to those who are poor and vulnerable, Ascension Health provides clinically excellent care with an emphasis on innovation and a focus on transforming the healthcare industry.

About Novasys Medical, Inc.

Novasys Medical, Inc. (Newark, California) is a privately held, venture-backed company which is developing novel therapies for the treatment of female pelvic disorders. The company's initial focus is on the development and commercialization of the Novasys Micro-remodeling System, a proprietary, non-surgical radiofrequency device to treat female stress urinary incontinence. For more information, please visit www.novasysmedical.com or call (510) 226-4060.

Contact:
Christine Cunningham
Vice President, Marketing
(510) 226-4080
ccunningham@novasysmedical.com