Healthcare Industry News:  BlueSky Medical 

Devices Wound Care Litigation

 News Release - August 30, 2006

Judge Enters Judgment Upholding BlueSky Medical Verdict in Wound-Care Patent Battle

SAN ANTONIO, Aug. 30 (HSMN NewsFeed) -- Federal Judge Royal Furgeson of the U.S. Western District of Texas has signed a judgment in favor of San Diego- based medical device company, BlueSky Medical, in its patent infringement battle with industry leader Kinetic Concepts Inc. (NYSE: KCI ).

The judgment upholds an Aug. 3, 2006 jury verdict that the use, manufacture and sale of BlueSky's Versatile 1 System(TM), a negative-pressure wound therapy device, did not directly infringe on KCI's patents for a similar device. Additionally, BlueSky Medical has been cleared of any willful, contributing, or inducement of infringement on KCI's patent claims.

KCI makes a negative pressure wound therapy device called the V.A.C(TM), for vacuum-assisted closure. The verdict, a unanimous decision by the nine- person jury, followed a six-week trial and eight days of jury deliberation.

"Prior to trial, we appealed to KCI to forego its aggressive litigation tactics so that we could come to some sort of amicable settlement," says Randy McClanahan of Houston's McClanahan & Clearman LLP, the lead attorney for California-based, privately-held BlueSky Medical. "For whatever reason, this was a case in which KCI chose to gamble a major asset on a hometown jury's verdict and lost."

According to published reports, as much as 80 percent of KCI's $330 million in second-quarter revenue came from sales of the V.A.C. Following the verdict, the value of KCI stock dropped more than 40 percent in a single day. Health care analysts predict that the ruling will create a more competitive market for the competing products, which use suction techniques to close hard- to-heal wounds and assist in forming healthy tissue after surgeries and traumatic accidents.

"Now, we're ready to compete head-to-head in the medical marketplace," says BlueSky CEO Richard Weston. "We believe this trial victory will allow patients who need wound therapy services to obtain them at less cost."

BlueSky Medical is a leading company in the field of negative pressure wound therapy using convenience dressing kits and portable suction pumps. BlueSky Medical is dedicated to assisting the medical communities they serve with quality products and information at affordable prices.

McClanahan & Clearman LLP represents individuals and businesses in high stakes plaintiff's commercial and business litigation, including patent disputes and other intellectual property matters. McClanahan & Clearman has a well-earned reputation of being able to outmaneuver other law firms because of its aggressiveness, tireless determination, and ability to act quickly.

For more information, contact Barry Pound ( ) or by calling 800-559-4534.

Source: McClanahan & Clearman LLP

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