NewCardio enters new line of credit with existing shareholders

NewCardio, Inc., (OTC Bulletin Board: NWCI) a cardiac diagnostic technology provider, today announced that it has entered into a new line of credit with three of its existing shareholders, one of which is represented on the Board of Directors, to strengthen its financial position.  This will allow the company further time to fully commercialize its lead solution, QTinno™.In conjunction with signing this credit line, the company withdrew the S-1 registration statement, previously filed with the Securities and Exchange Commission (SEC) as it does not currently intend to pursue the public offering. Management believes that the company has sufficient operating capital to sustain its operations and fund its business plan at this time.  

The credit facility is part of a series of steps designed to improve the company's ability to identify and attract potential strategic relationships and/or investors, which is intended to enable the company to maximize the value to be derived through continued development of its 3D platform technology.

Vincent W. Renz Jr., President and Chief Executive Officer of NewCardio, commented, "We appreciate the confidence shown by our original  investors in NewCardio, and we believe this line of credit is preferable to equity offerings we had been considering under the now-withdrawn S-1 Registration Statement.  In the last 60 days, we have re-organized our senior management team to focus on commercializing our technology and expanding our presence with pharmaceutical companies, clinical organizations and regulators. We have also taken steps to strengthen our financial position by reducing cash usage over the next six months. Now with this line of credit, we are confident we have sufficient resources to execute our strategy for QTinno as well as improve our position as we explore a number of strategic opportunities which will enable the accelerated development of our 3D platform technology. We look forward to updating our shareholders in more detail in a conference call in the coming weeks."

Management anticipates conducting a conference call in mid-August to coincide with the release of its second quarter financial results for the period ended June 30, 2010. Management will schedule and announce a conference call prior to that date.

The new $1.5 million line of credit is being provided by existing investors that participated in the July 2009 credit line.  The conditions to advances, and rights of the lenders, are set forth in the credit line documents that are exhibits to NewCardio's current report on Form 8-K, filed with the SEC contemporaneously with this press release.

In addition, as of this date, all previous commitments to fund the Company under prior credit lines have been met in full.

Mr. Renz continued, "We believe that the commitment of our original investors to provide an additional $1.5 million credit line, as well as fully fund all amounts on the existing current credit line, reinforces their confidence with the company, our management team and the recent changes we implemented.  Their support enables us to focus on our key commercialization and strategic initiatives."