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Zecotek advances research initiatives to develop "PET - MRI" in a collaborative agreement with University of Washington - Offering the next generation in medical imaging
09:30 EDT Thursday, July 27, 2006



SINGAPORE, July 27 /CNW/ - Zecotek Medical Systems Singapore Pte Ltd, a division of Zecotek Medical Systems Inc., (TSX-Venture - ZMS; Frankfurt- W1I.F) today announced that it has entered into a Collaborative Research Agreement with the University of Washington. Jointly, the two parties will develop a proprietary PET-MRI detector as the core technology of a next generation medical imaging system.

"Zecotek's new crystal materials, photo-detectors and advanced optical components design are critical to a successful fusion of PET and MRI into one machine. The major barrier to a fusion of PET-MRI has been the strong magnetic fields of MRI which destroy the photo-detection capabilities of current PET" states Dr. Faouzi Zerrouk, Chairman and CEO of the Company "Zecotek has developed the technologies to overcome this barrier and will be working with UofW on a complete solution."

Dr. Zerrouk added; "We are very excited at having entered into this agreement with Prof. Lewellen and his team. Prof. Lewellen is considered a leading worldwide researcher in the field of high resolution PET system development and has established immense credibility with major medical OEMs. Prof. Lewellen and his team have acknowledged Zecotek's contribution to the project as the 'breakthrough technologies' needed for the successful development of a PET/MRI system, considered the next gold standard in Medical Imaging."


Company Roadmap: Moving up the Value Chain

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The increasing demand for improved imaging tools in the early detection and treatment of disease is resulting in both a rapid growth in equipment sales and an evolution in imaging technologies. Medical device OEM's now offer an array of image detection devices to capture human anatomy (X-ray, Computed Tomography or CT, and Magnetic Resonance Imaging or MRI) and biological activity (the Positron Emission Tomography or PET scanner) in a global market estimated at US$10 billion annually. The fastest growth segment is the PET-CT scanner, a hybrid device that captures both anatomical abnormalities as well as biological activity at the molecular level. Currently the frontier in imaging for disease detection and treatment, PET-CT sales are expected to pass US$1 billion annually.

To date, the principal focus of the Company's Imaging Division has been the development of enabling technologies for the PET-CT devices of third party OEMs. These include the Company's LFS scintillation material as a performance upgrade to present PET-CT devices (marketed by Northrop Grumman under an exclusive 20 years licensing agreement), as well as other technologies in development, including new solid state photo-detectors and scintillation materials.

While these enabling technologies represent significant value and will continue to be an important source of the Company's revenue, to deliver increased value to shareholders the Company's roadmap includes selectively moving up the value chain with the development and commercialization of complete devices in its new 9000 square foot research and production facilities in Singapore. Combined PET/MRI/MRS systems offer unique capabilities in simultaneous imaging of anatomy and function. While the fusion of these technologies has previously been attempted, a completely integrated system has not yet been possible due to a number of issues, including the impact of the magnetic field of the MRI system on the PET detectors. The Company's proprietary technologies, described as "critical enabling technologies" by UofW group leader Dr. Tom Lewellen, will be key components to overcoming these issues and making a completely integrated system a reality.


The Alliance with the University of Washington

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The PET-MRI development project is a joint collaboration between Zecotek and the University of Washington, where the Agreement recognizes existing pre-agreement rights of the United States Government National Institute of Health in the pre-agreement intellectual property developed at the University. Each party will contribute proprietary intellectual property to the project. Under the Agreement, Zecotek will contribute the project's funding and the enabling technologies of scintillation crystals and solid state photo-detectors. The Company and the University will collaborate on systems and component designs as well as project management over the project's anticipated three year life. Among the Company's intellectual property contributions will be these new technologies in development, including its solid state photo-detectors and advanced scintillation materials. Part of the University's contribution is its extensive experience in PET detector and electronics design as well as system integration and image reconstruction algorithms and display/analysis. New designs developed at UofW will utilize Zecotek's unique crystal and solid-state photo-detectors as well as access to Zecotek's expertise in optical components design, along with advancements in the University's unique FireWire based data acquisition methodologies and image reconstruction algorithms for the new scanners. The sole rights to commercialization obtained under the Agreement with the UofW represent an important operational step toward the Company's goal of developing and commercializing a proprietary PET/MRI system.

The Agreement was signed by Zecotek Medical Systems Singapore Pte Ltd, a wholly-owned subsidiary of the Company. "By signing this Agreement, Zecotek will benefit from this union, considered one of the most prestigious and widely recognized imaging research teams in the world" added Dr. Zerrouk.