May 16, 2003

NERVONIX AND BATTELLE HEALTHCARE FORM ALLIANCE TO COMMERCIALIZE NOVEL MEDICAL IMAGING TECHNOLOGIES

Nervonix, Inc., the pioneer in nerve-imaging technology, and Battelle, one of the world's leading technology development and commercialization companies, announced today that they had formed an alliance to help commercialize innovative technologies developed by Nervonix.

The Nervonix nerve imaging technology is a new form of imaging that differs from radiology, CAT scans and MRI, and has the potential to dramatically improve treatment in a variety of markets, including regional anesthesiology, surgery and pain management.

"I think the Nervonix technology will bring valuable information to the clinician," said Rich Rosen, Battelle's Senior Vice President and General Manager, Health Care Products Sector. "We have opportunities to work across a whole range of areas in the heath care arena."

Battelle has a tradition of working with agile, innovative companies and was attracted to Nervonix because of the potential for a breakthrough. "The Nervonix technology breaks the paradigm in the way the industry looks at nerve imaging," said Rosen. "Their technology is novel and easy to understand."

Battelle will help Nervonix in two distinct areas: product development and business strategy.

Nervonix principals Philip Cory, MD, and Joan Cory, Ph.D., value the knowledge and skill that Battelle has in the medical technology field. "The breadth of their experience is invaluable to us," said Phil Cory, Nervonix President. "Battelle's stature, knowledge and contacts in the medical device industry are exceptional."

"There is something special about working with bright people who understand what we are doing," said Joan Cory, Nervonix CEO. "We are confident that they will help accelerate the process of our technology achieving commercial success."

Leaders in the medical field are recognizing the value of nerve imaging technology. Even though the first prototypes are still in development, research suggests that this technology holds promise also for imaging myofascial trigger points. They look forward to a prototype instrument to test this possibility and then to a commercially available device.

"This would be a breakthrough of major importance to neurologists and could be especially important to any practitioner who deals with musculoskeletal pain," said Dr. David Simons, Clinical Professor (Voluntary), Department of Rehabilitation Medicine, Emory University. "If it can image myofascial trigger points and, as the advantages of this new principle of imaging becomes recognized, every hospital imaging center, every outpatient clinic dealing with musculoskeletal pain, and every clinic in isolated areas will need at least one."

Battelle is a global leader in science and technology. It develops and commercializes technology and manages laboratories for government and commercial customers. Headquartered in Columbus, Ohio, Battelle and the national labs it manages or co-manages have 16,000 staff members and conduct more than $2.7 billion in annual research and development. Battelle innovations include the development of the office copier machine (Xerox), pioneering work on the compact disc, fiber optics, and medical technology advancements.

By working with Nervonix, Inc., a Bozeman, Montana based firm, Battelle Health Care Products continues a mission to be recognized as an emerging leader in bringing products to market that enhance medical care.

For more information, visit www.battelle.org or www.nervonix.com.

Contacts:

Katy Delaney, Battelle Media Relations Manager, (614) 424-5544, delaneyk@battelle.org.

Gary Smith, Vice President of Marketing, Battelle Health Care Products (614) 424-7194

Philip C. Cory, MD, President, Nervonix, Inc., pcory@nervonix.com.