TORRANCE, Calif. -- July 27, 2004 -- iCRco and Shanghai Ascent Medical Equipment Technologies have created a strategic partnership through which Shanghai will distribute and service iCRco’s computed radiography systems in the People’s Republic of China. Shanghai will also act as iCRco’s agent to obtain Chinese regulatory approval.

“This represents a great opportunity,” said Sales of iCRco. “Shanghai Ascent Medical has the expertise and capabilities to help iCRco expand throughout China. It will be a strong partner.” China’s centrally run healthcare system is converting to digital technology at a faster rate than U.S. hospitals. According to Sales and Marketing, only about 15 percent of U.S. hospitals have adopted digital technology; many simply lack money for capital improvements. “In South Korea, market penetration is about 80 percent and we think China – the largest market in the world – has the same potential,” said Sales. “This is a very exciting time.”

The simplicity of iCRco’s computed radiography systems will make it an attractive choice in the Chinese market, which includes both technologically advanced medical centers in the country’s larger cities and rural clinics that operate in rugged environments. The units’ simple design, intuitive user interface, flat scan path, low maintenance and competitive pricing make them particularly good choices for clinics and smaller hospitals.

According to Eddy Ye, vice president of business development for Ascent Medical, iCRco’s entry into the Chinese market will represent the first time that country’s health care professionals have had access to computed radiography technology that is both affordable and of high quality. “iCRco’s computed radiography solutions have the right attributes of quality, simplicity and low cost,” he said. “We have great confidence in iCRco as our product partner.” According to Ye, approval by the Chinese State Drug Administration (SDA) – the Chinese equivalent of the U.S. Food and Drug Administration – will take about four months. Product shipments are expected to start in the fourth quarter of 2004. Shanghai Ascent Medical will exhibit the iCRco computed radiography systems at the 52th China International Medical Equipment Autumn Exhibition in November 2004.