Healthcare Industry News:  continuous glucose monitor 

Devices Distribution

 News Release - October 6, 2011

D. Medical Expands U.S. Distribution Network for Spring Universal Infusion Sets

TIRAT CARMEL, Israel, Oct. 6, 2011 -- (Healthcare Sales & Marketing Network) -- D. Medical Industries Ltd. (Nasdaq:DMED ) (TASE:DMED ) ("D. Medical" or the "Company"), a medical device company engaged through its subsidiaries in the research, development, manufacture and sale of innovative products for diabetes treatment and drug delivery, announced today that its subsidiary, Spring Health Solutions Inc. ("Spring Health"), has signed a non-exclusive distribution agreement with Doubek Medical Supply Inc. ("Doubek") for the distribution of its Spring(TM) Universal Infusion Sets in the United States.

Spring Health, a Delaware company headquartered in New Jersey, is owned 100% by Spring Health Solutions Ltd., which, in turn, was established for the purpose of supporting D. Medical's U.S. operations. This agreement with Chicago-based Doubek marks the second non-exclusive U.S. distributorship established by Spring Health.

The U.S. insulin pump and disposables market is large and growing. According to the American Diabetes Association, approximately 26 million diabetes patients live in the United States, constituting 8.3% of its population. Of those, experts estimate that 5.4%, or 1.4 million, suffer from Type 1 diabetes and 350,000 currently rely on insulin pump therapy. A recent U.S. Centers for Disease Control and Prevention report estimated that 1 in 3 Americans will have diabetes by 2050 if current trends continue. The annual market for infusion sets alone is estimated to total $730 million in the U.S.

Zoe Myers, D. Medical's Chief Commercial Officer, commented, "The expansion of our U.S. distribution network through the addition of market leaders like Doubek is in keeping with our goal of generating meaningful revenues and reaching positive margins as quickly as possible. Moving forward, we are committed to working closely with all of our distribution partners to ensure that our groundbreaking Spring Universal Infusion set product will gain significant awareness, acceptance and adoption."

About the Spring Universal Infusion Set

The Spring Universal Infusion Set is compatible with most insulin pumps currently available on the market. Going beyond the minimum requirements of subcutaneous drug delivery, the Spring Universal offers best-in-class features such as a hidden, auto-retractable needle, 360 degree connector, and smallest one-click, all-in-one inserter.

The core of the Spring Universal Infusion Set is the proprietary Detach-Detect mechanism. In the case the base of the infusion set detaches from the user's body, a blocking mechanism is triggered which, in turn, creates an occlusion. This evokes an occlusion alarm in an insulin pump. This unique feature enables exceptional reliability for continuously controlled and monitored insulin delivery, providing additional safety and peace of mind - especially for athletes and the parents of pediatric patients.

About D. Medical

D. Medical is a medical device company engaged through its subsidiaries in the research, development, manufacture and sale of innovative products for diabetes treatment and drug delivery. D. Medical has developed durable and semi-disposable insulin pumps, which continuously infuse insulin into a patient's body, using its proprietary spring-based delivery technology. D. Medical believes that its spring-based delivery mechanism is cost-effective compared to the motor and gear train mechanisms that drive competitive insulin pumps and also allows it to incorporate certain advantageous functions and design features in its insulin pumps. D. Medical has also developed an infusion set for insulin pumps and is focusing its research and development efforts on the development of next generation insulin pumps and a device that will combine a continuous glucose monitoring system and an insulin pump on the same patch. For more information, please visit http://www.dmedicalindustries.com (corporate) and http://www.springnow.com (healthcare professionals, patients and care givers).

About Doubek Medical Supply

Doubek Medical Supply Inc. is part of Doubek Medical Supply & Pharmacy which is an organization of experienced professionals specializing in quality "people" care. Doubek has been in business for over 50 years, and its staff includes:

* Registered Pharmacists
* Registered Nurses
* Certified Fitters

From pharmaceuticals to medical supplies and equipment, Doubek Medical Supply & Pharmacy is a full service supplier.

Forward-Looking Statements

This press release contains forward-looking statements (as defined by the Israeli Securities Law, 1968, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) that involve risks and uncertainties. These statements include, forecasts, goals, uncertainties and assumptions and relate, inter alia, to D. Medical's future expectations in connection with its level of sales and cost of sales, manufacturing volumes, the cost-effectiveness of its spring-based design, target markets, regulatory approvals and timing of markets penetration. The forward-looking statements are based on D. Medical's current expectations and beliefs which are based on, among other things, its analysis of publicly available information and market research reports. All forward-looking statements are subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements. Such risks and uncertainties include, but are not limited to, the impact of general economic conditions, competitive products, product demand, product performance, the performance of D. Medical's contract manufacturer and distributors, regulatory trends and approvals and healthcare reform legislation. If one or more of these risks and/or uncertainties materialize, or if the underlying assumptions prove to be incorrect, D. Medical's actual results, performance or achievements could differ materially from those expressed in, or implied by, any such forward-looking statements or results which are based upon such assumptions. No assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or of any of them will transpire or occur, what impact it will have on D. Medical's results of operations or financial condition. D. Medicals does not undertake to update any forward-looking statements.


Source: D. Medical Industries

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