The Parastep I System - Rehabilitation Technology for the Spinal Cord Injured


SPECIAL ANNOUNCEMENT

Date: April 1st, 2003

To: All Prospective Customers & Parastep I Clinical Centers

From: Sigmedics, Inc. Management

Re: Major National Coverage Determination Decision

CMS EXTENDS PARASTEP I SYSTEM COVERAGE

We are very pleased to announce that the Centers for Medicare and Medicaid Services (CMS), as well as certain other major insurance carriers, announced that as of April 1st., 2003 they will cover under their respective policy plans payment for the purchase of the Parastep I System and for the costs associated with undergoing the required physical therapy gait training and instruction in system use (approximately 32 sessions), for qualified beneficiaries and clients. Medicare shall cover approximately 80% of system acquisition costs.

The price for a 6-channel Parastep I System has remained the same since its 1994 U.S. Food and Drug Approval for commercial marketing, at $ 12,780 + shipping, handling and insurance.

Specific HCPCS codes have been assigned by CMS for billing both the PT services (Gait Training Code # 97116), as well as for the durable medical equipment (DME) (Code # K0600).

Further information about the national coverage insurance decisions may be found by visiting:

http://www.cms.hhs.gov/ncd/searchdisplay.asp?NCD_ID=175&NCD_vrsn_num=1
(please insert as a straight line) &

http://www.aetna.com/cpb/data/CPBA0011.html

These recent exciting events obviously present a wonderful opportunity for hundreds of qualifying SCI individuals who otherwise may not have been financially able to access this technology, to now do so successfully.

With kind regards,

Frank E. Zeiss

Managing Director & Chief Operating Officer

The Parastep I System - Rehabilitation Technology for the Spinal Cord Injured


SPECIAL ANNOUNCEMENT

Date: February 1, 2002

To: All Parastep I Clinical Centers

Re: Sigmedics, Inc.’s Relocation and Strategic Alliance Partnership

It is with great pleasure that we wish to advise you of Sigmedics, Inc.’s recent relocation from Wheeling, Illinois to Fairborn, Ohio. Though we are still in the process of settling down in our new location, we wanted to make sure that all of you had access to our new address and telephone/fax numbers, which appear on this letterhead.

Our relocation was prompted by a number of business reasons, the most compelling of which was the decision to form a strategic alliance with a group of old healthcare colleagues, business associates and friends from Fairborn, Ohio, who manage and operate a company by the name of Therapeutic Alliances, Incorporated (TAI).

In addition to their other rehabilitative products, TAI is an international neurorehabilitation leader in FES technologies for the spinal cord injured. The company offers the well known REGYS and ERGYS leg cycle ergometers, in addition to the NeuroEDUCATOR, a surface EMG feedback device for neuromuscular re-education, and the spectraSTIM, a standalone neuromuscular stimulator. 

We believe that the alliance between Sigmedics and TAI will prove of added value and benefit to both our clinical associates as well as private users, by bringing forth the best of both companies’ products while serving as a catalyst for new product development. We strongly feel that the technologies represented by our respective companies compliment each other well, and will enhance your rehabilitation departments by providing more choices for your patients, while augmenting revenue generation.

For more information please contact us at the above address or telephone, or kindly visit our web site at: <sigmedics.com>. For information about TAI and its products please contact Mr. James Schorey, President, at (937) 879-0734, or visit their web site at: <musclepower.com>. Thank you.

With kind regards,

Frank E. Zeiss

Managing Director & Chief Operating Officer