Ekips Technologies, Inc. Receives NIH Phase II Grant to Fund Human Asthma Testing With Breathmeter^TM in Partnership with American Lung Association of Oklahoma

NORMAN, Okla. (October 5, 2004) - Ekips Technologies, Inc., announced today the company has received a $750,000 Phase II National Institutes of Health (NIH) grant from the National Heart Lung and Blood Institute (NHLBI) to support clinical studies for obtaining FDA approval of the company's initial product -- The Breathmeter^TM (http://www.breathmeter.com). The laser-based breath analysis instrument can aid in the diagnosis of asthma and subsequent treatment monitoring.

Funds will be used to support human testing and additional instrument development in partnership with the American Lung Association of Oklahoma. The Oklahoma organization is one of two ALA chapters nationwide involved in human clinical studies.

"We are excited to support Ekips and its breakthrough Breathmeter technology and hopefully bring its potential to fruition for all asthma patients and the medical professionals who care for them," says Kay Todd, PhD, CAE, Chief Executive Officer, American Lung Association of Oklahoma. "This partnership reinforces our philosophy not only to educate, but to push the envelope for new solutions to asthma."

Pulmonologists, asthma specialists, and respiratory therapists reviewed the latest generation of the Breathmeter at the September 2004 Hammarsten Medical Conference in Oklahoma City sponsored by the Oklahoma ALA Chapter.

"I look forward to trying out the Breathmeter in my clinic," says Dr. Santiago Reyes, a pediatric pulmonologist in Oklahoma City. "It is clear from its performance that the Breathmeter will easily handle my patient load of about 20 patients per day."

Worldwide medical research demonstrates that exhaled biomarkers are potentially useful objective measurements of airway inflammation in asthma. Measurement of exhaled biomarkers goes beyond traditional pulmonary function testing such as spirometry. The Breathmeter is designed to allow physicians real-time access to information contained in breath samples previously limited to research laboratories.

The patent-pending technology developed by Ekips uses a mid-infrared laser chip - similar to the laser chip used in commercial DVD players -- to measure markers linked to asthma in exhaled breath. Such multiple molecule measurement capability allows great flexibility in breath sample collection. The Breathmeter technology has received national attention in such publications as the Wall Street Journal, USA Weekend and Prevention magazine.

Asthma experts agree that more widespread monitoring of exhaled inflammatory markers for asthma diagnosis and therapy monitoring can be a key part of improving the health of asthma sufferers. The Asthma and Allergy Foundation of America reports five million children in America have asthma and up to 20 percent of infants have eczema. The Centers for Disease Control and Prevention estimates the cost of treating asthma in these children at $3.2 billion per year.

"The potential benefits to both the doctor and the patient are substantial because we have another tool to use in the clinic to help us monitor the progress of asthma therapy," says Dr. Mark Camp of the Lung Center, Norman, Oklahoma. "The Breathmeter is a very patient friendly device which allows us to test children too small for standard pulmonary function testing. We are excited about its potential clinical applications."

About Ekips Technologies, Inc. Ekips Technologies, Inc., incorporated in Oklahoma in 1997 to develop, manufacture and market lasers and laser-based systems. The company's proprietary technology enables low-cost fabrication of semiconductor lasers that have performance characteristics superior to those of competing products. The company is the beneficiary of research grants from the National Science Foundation and the Oklahoma Center for the Advancement of Science and Technology. For more information on the company's flagship product visit http://www.ekipstech.com.