SPO Medical Inc.
(SPOM), a leading developer of biosensor and microprocessor technologies for
use in portable monitoring devices, today announced it has signed a
Memorandum of Understanding (MOU) with MetroSleep Inc, a US corporation that
specializes in products to diagnose and treat sleep apnea through at-home
testing. The MOU enables the integration of SPO Medical' ASIC chip-set
technology in a new MetroSleep product offering for the Sleep Disturbance
Breathing (SDB) monitoring market. The terms include an advance licensing fee
and a subsequent royalty payment to SPO once the products are commercially
available. In addition, MetroSleep will remunerate SPO on a usage-fee basis
via SDB devices that are deployed by MetroSleep in the market. The MOU
provides that the parties shall enter into legally binding agreements upon
MetroSleep receiving required funding for launch of the products.
Michael Braunold, President and Chief Executive Officer of SPO Medical
commented: "The arrangement with MetroSleep further demonstrates the value of
our proven technology into mass-market applications. The home testing market
is an excellent opportunity for integration of our technology, enabling
monitoring of those who suffer from undiagnosed sleep-apnea in the comfort of
their home without the need for expensive and inconvenient sleep-laboratory
testing. Sleep apnea affects more than 40 million people in the United States
alone of which 85% are currently undiagnosed, making it the most common sleep
disorder - our partnership with MetroSleep will help bring a cost-effective
solution to this vast market."
Haim Zitman, President of MetroSleep commented: "We decided to partner
with SPO as our technology provider for oximetry measurements since this
constitutes a vital part of our multi-channel home diagnostic system. We are
uniquely poised to capitalize on the fast-growing sleep apnea testing and
therapy market that is expected to reach more that $4 billion by 2012.
MetroSleep together with SPO's technology could play a leading roll in the
emerging home-test market especially since reimbursements are now permissible
for this application; we will now be able to offer individuals a more
convenient, cost-effective sleep test and therapy experience."
SPO Medical Inc. recently announced its intention to focus primarily on
OEM and licensing arrangements going forward to maximize the potential for
commercialization of its patented reflectance pulse oximetry in various
markets. Braunold continued; "We continue to seek mass-market applications
for our technology platform through commercial relationships with entities
that can best maximize our deliverable. We believe MetroSleep has identified
such a market sector and opportunity which can add further strength to our
Company and its offering, which in turn contributes to potentially increasing
value for the SPO Medical shareholders."
SOURCE SPO Medical Inc