RITA Medical Systems and Aloka Sign Co-Promotion Agreement

RITA Medical Systems and Aloka Sign Co-Promotion Agreement

MOUNTAIN VIEW, Calif., Dec. 14 /PRNewswire/ -- RITA Medical Systems, Inc. (Nasdaq: RITA), a medical device company that develops, manufactures and markets minimally invasive products to treat patients with solid cancerous or benign tumors, announced today that it has signed a co-promotion agreement with Aloka Co., Ltd., one of the world's leading diagnostic ultrasound imaging companies. Ultrasound is the method used most often to visualize and guide the placement of RITA's radiofrequency (RF) ablation devices during medical procedures. Aloka and RITA expect the agreement to increase and broaden awareness among physicians of both companies' product lines and the important benefits provided by each company's products, which are often used in conjunction with each other.

Under the terms of the agreement, each company's U.S. sales force will undergo training on the others' products to help them identify potential common customers. RITA and Aloka will also seek opportunities to cooperate in formal physician training programs, co-sponsor trade show receptions, as well as display products and/or promotional materials at each other's booth at important industry shows and conferences. Each company will retain direct control of the sales process for their respective products.

RITA President and Chief Executive Officer Barry Cheskin commented, "While we have driven dramatic sales growth via our direct sales and sales management team of around 30 professionals in the U.S., we also recognize that by combining our strengths with those of carefully chosen partners, we can leverage our combined resources and further extend and accelerate our reach. The Aloka agreement is the first example of what we hope will be additional mutually beneficial relationships that have the potential to continue to increase the use of our company's products."

RITA Vice President, Business Development, David Horn said, "Our relationship with Aloka is a great strategic fit for our company and our proprietary RF technology and helps strengthen our position to take advantage of the growing trend towards minimally invasive surgery. Ultrasound is one key enabling technology for laparoscopic radiofrequency ablation and we believe Aloka offers some of the best ultrasound imaging tools for these procedures. In addition, Aloka's significant presence in the ultrasound marketplace with more than 25 sales/applications professionals offers us a unique opportunity to extend our sales and marketing reach."

RITA's technology enables physicians to deliver monitored and controlled levels of radiofrequency energy through an array of thin electrodes inserted into a tumor, heating and destroying that tumor, often without open surgery or the need for general anesthetic.

Liver cancer is one of the most prevalent and lethal forms of cancer in the world. Around two million patients are diagnosed with this cancer each year worldwide. The majority of those diagnosed are not eligible for surgery and are, therefore, potential candidates for the RITA procedure. The Company estimates the market opportunity for its core liver cancer application is around $500 million annually.

About RITA Medical Systems:

RITA Medical Systems develops, manufactures and markets innovative products for patients with solid cancerous or benign tumors. The proprietary RITA system uses radiofrequency energy to heat tissue to a high enough temperature to ablate it or cause cell death. While the company's current focus is on liver cancer, the company believes that its minimally invasive technology may in the future be applied to other types of tumors, including tumors of the lung, bone, breast, prostate and kidney. The company has received regulatory clearance in major markets worldwide, including the United States. In March 2000, RITA became the first radiofrequency ablation company to receive specific FDA clearance for unresectable liver lesions in addition to its previous general FDA clearance for the ablation of soft tissue. The company has sold over 30,000 of its disposable devices throughout the world.

The statements in this news release related to the company's plans to extend its technology to applications beyond the liver are forward-looking statements involving risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. Potential risks and uncertainties include the company's dependence on timely market acceptance of the RITA system, the outcome of current patent actions, the company's history of operating losses and expectation that it will continue to incur significant operating expenses over the next several years, significant competition in the company's industry and alternative therapies which could prove to be superior to the RITA system. Further information regarding these and other risks is included in the company's periodic filings with the Securities and Exchange Commission, including the company's Report on Form 10-K for the year ended December 31, 2000 and the company's Report on Form 10-Q for the quarters ended March 31, 2001, June 30, 2001 and September 30, 2001.

For further information, please contact investors, Matt Clawson, matt@allencaron.com, or media, Len Hall, len@allencaron.com, both of Allen & Caron Inc, +1-949-474-4300, for RITA Medical Systems, Inc.; or Don Stewart, Chief Financial Officer of RITA Medical Systems, Inc., +1-650-314-3400, dstewart@ritamed.com.

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SOURCE RITA Medical Systems, Inc.
Web site: http: //www.ritamedical.com
CONTACT: investors, Matt Clawson, matt@allencaron.com, media, Len Hall, len@allencaron.com, both of Allen & Caron Inc, +1-949-474-4300, for RITA Medical Systems, Inc.; or Don Stewart, Chief Financial Officer of RITA Medical Systems, Inc., +1-650-314-3400, dstewart@ritamed.com