Healthcare Industry News:  Safety-Sponge 

Devices Surgery

 News Release - June 29, 2007

SurgiCount Medical, Inc. Signs Three Year Contract with Covenant Health

SurgiCount Medical, a Wholly-Owned Subsidiary of Patient Safety Technologies, Inc. (OTCBB:PSTX), Receives Another Contract for Full Deployment of the Safety-Sponge(TM) System in a Large West Texas Institution

TEMECULA, Calif.--(HSMN NewsFeed)--Patient Safety Technologies, Inc. (OTCBB:PSTX ) announced today that Covenant Health, a West Texas Hospital in the St. Joseph Network, signed a three year contract to use SurgiCount Medical's computer assisted counting system throughout two facilities.

As previously reported in Patient Safety Technologies' 2007 first quarter results of operations, SurgiCount's Safety-Sponge(TM) System was, and continues to be, evaluated by approximately 10 medical institutions. The potential impact to the Company's annual gross revenues, from sales of the Safety-Sponge to these medical institutions, ranges from approximately $100,000 to $750,000 for each medical institution. We anticipate that Covenant's decision to fully implement the Safety-Sponge System in all 23 operating rooms at its main facility, as well as the 7 operating rooms at Covenant Medical Center-Lakeside, will generate approximately $250,000 in recurring annual revenues.

"Covenant's decision to implement the Safety-Sponge System speaks volumes as to the readiness of the market for our computer assisted counting technology. We are thrilled to have Covenant as a customer and look forward to eventually working with the entire St. Joseph Network," said Rick Bertran, President of SurgiCount Medical.

Dr. Jon Furbee, VP of Perioperative Services, said, "By using this technology in our system it allows us to deliver to our patients the care and safety required as they undergo surgery. Covenant Health is the first in the St. Joseph's Health System as well as in Lubbock, Texas to acquire the state of the art technology. The ease of use gives our staff the tools to continue to provide outstanding care for all of our surgical patients."

About Covenant

Covenant Health System is a member of St. Joseph Health System, one of the most successful not-for-profit health systems in the United States. It was founded in 1998 through the merger of two of Lubbock's most venerable heath care facilities, St. Mary of the Plains Hospital and Lubbock Methodist Hospital System.

Covenant Health System is the largest health care institution in the region with 1,394 licensed beds, more than 5,000 employees and a medical staff of more than 600 physicians at its cornerstone facilities. Covenant serves a 62-county area spanning West Texas and eastern New Mexico, with a population in excess of 1.2 million. Cornerstone hospitals are Covenant Medical Center, Covenant Medical Center-Lakeside, Covenant Children's Hospital and Covenant Specialty Hospital. Other system hospitals are Covenant Hospital Levelland and Covenant Hospital Plainview, along with 12 other managed and affiliated hospitals across the region. For more information please visit www.covenanthealth.org.

About SurgiCount Medical, Inc.

SurgiCount Medical, Inc. is a developer and manufacturer of patient safety products and services. The SurgiCount Safety-Sponge(TM) System is a patented turn-key array of modified surgical sponges, line-of-sight scanning SurgiCounters, and PrintPAD printers integrated together to form a comprehensive counting and documentation system. The Safety-Sponge System works much like a grocery store checkout process: Every surgical sponge and towel is affixed with a unique inseparable two-dimensional data matrix bar code and used with a SurgiCounter to scan and record the sponges during the initial and final counts. Because each sponge is identified with a unique code, a SurgiCounter will not allow the same sponge to be accidentally counted more than one time. When counts have been completed at the end of a procedure, the system will produce a printed report, or can be modified to work with a hospital's paperless system. The Safety-Sponge System is the only FDA 510k approved computer assisted sponge counting system. For more information, please contact SurgiCount at (951) 587-6201, or visit www.surgicountmedical.com.

About Patient Safety Technologies

Patient Safety Technologies, Inc. focuses on the acquisition of controlling interests in companies and the research and development of products and services in the health care and medical products field, particularly the patient safety markets. Its wholly-owned subsidiary, SurgiCount Medical, Inc., is a developer and manufacturer of patient safety products and services.

Forward-Looking Statements

This press release contains certain forward-looking statements. These forward-looking statements can generally be identified as such because the context of the statement will include words such as Patient Safety Technologies plans, expects, should, believes, anticipates or words of similar import. Stockholders, potential investors and other readers are cautioned that these forward-looking statements are predictions based only on current information and expectations that are inherently subject to risks and uncertainties that could cause future events or results to differ materially from those set forth or implied by the forward-looking statements. Certain of those risks and uncertainties are discussed in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K and quarterly reports on Form 10-Q. These forward-looking statements are only made as of the date of this press release and Patient Safety Technologies does not undertake any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.


Source: SurgiCount Medical

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