Pega Medical signs Middle East Distribution Agreement with Al Emara Marketing

Montreal, Quebec September 08, 2004

Pega Medical Inc., an ISO 13485-certified, privately held company based in Montreal specializing in the design, development, evaluation and manufacturing of orthopaedic medical devices with direct distribution in the US and Canada, announced today the signing of a distribution agreement with Al Emara Marketing of Dubai, United Arab Emirates. The agreement concerns the innovative Fassier-Duval Telescopic IM system for the territory including Saudi Arabia, Iran, Iraq, Kuwait, Qatar, Syria, Yemen, Oman, United Arab Emirates, Kingdom of Bahrain, Lebanon and Jordan.

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About the Fassier-Duval Telescopic IM Nail System
The Fassier-Duval Telescopic IM Nail System is an intramedular device aiding patients living with OI. Unlike other commercially available rods, the telescoping range of the F-D system has been increased as has the stability and fixation of the rod, reducing the necessity of revision surgery. The rehabilitation time post-op is reduced compared to that of other systems thanks to a minimally invasive technique and because articular joints are unaffected by the surgery. Both reoperation and complication rates at 4 years have been reduced over 3-fold when compared to competitive devices.

Developed by Pega Medical Inc. and Drs. Francois Fassier (Montreal Shriners Hospital) and Pierre Duval (BMP Hospital) as an alternative telescopic rodding system, this device is indicated for the surgical treatment of paediatric patients diagnosed with OI as well as short-statured patients requiring bone lengthening procedures. Over 300 implants are already in use across the United States, Canada, Spain, Belgium, Kuwait, Peru, Ecuador, and Slovenia. An update of the clinical results were presented during the 2003 meeting of the Socit Franaise de Chirugie Orthopdique et Traumatologique (SOFCOT) last November in Paris, France.

Mr. Ariel Dujovne, president and CEO of Pega Medical, commented: "With this agreement Pega Medical brings its technology closer to the children suffering from OI and other bone deformities. Previously, these children had to be flown to North America to receive the best treatment medical technology has to offer. Our company will continue to strive with new and improved orthopaedic devices specifically conceived and developed for paediatric patients worldwide "

Mr. A Hamid Bukhashem, director of Al Emara Marketing, commented: "We are delighted to enter into this agreement with Pega Medical. As our company expands into new fields of medical technology, and more of our orthopedic surgeons are specialized in North American medical schools, bringing the tools that match their expertise will allow them to treat our population with leading edge medicine."

For further details please contact:
Pega Medical Inc.:
www.pegamedical.com,
adujovne@pegamedical.com
Tel +1-514-322-8560 x 245

Al Emara Marketing:
alemara@emirates.net.ae ,
Tel 0097-14-319-2231

© Press Release 2004