1. 1 Supersensitive magnetocardiographic system for early recognition, precise diagnostics and monitoring of heart diseases 12.10.2006 Kiev Dr.Volodymyr Sosnytskyy +38(044)5013072 sosna@uninet.kiev.ua Kiev Medical Group, Ltd. Kiev

2. 2 Proprietary information statement The technology material presented in this talk is available for licensing or joint product development. None of the slides contain any confidential or proprietary information which would prevent patenting the technology.

3. 3 Problem Description & Market Need - Ischemic heart disease is the leading cause of death in Western countries. -The early noninvasive diagnosis of ischemia is one of the major clinical problems that could benefit from the additional information provided by MCG. -MCG can identify propensity to ventricular arrhythmias, in heart diseases, independently of other clinical variables. -Contactless MCG can be ideal for research and development of new drugs and for experimental evaluation of gene therapy. -The vicious circle: lack of clinical equipment -> clinician skepticism ( lack of experience) -> lack of evidence-based clinical benefit -> no real market -> lack of investment -> lack of development of clinical equipment.

4. 4 Brief technology description MCG is the measurement of magnetic fields emitted by the human heart from small currents by electrically active cells of the heart muscle. MCG is a completely noninvasive method that permits the registration of cardiac electrical activity at multiple site in a plane above the chest cage without the need for electrodes. MCG is both a method to record cardiac signals and to provide 3D functional imaging of cardiac electrophysiology.

5. 5 Map of magnetic field distribution on Tapex Averaged MCG 36-channels Map of current density distribution on Tapex Normal MCG

6. 6 Advantages MCG is modern imaging and quantitative analysis technique for detection abnormal difference in electrophysiological cardiac phenomena Magnetocardiography (MCG) is a noninvasive and risk-free technique for contactless surface mapping of the magnetic fields generated by the electrical activity of the heart. This SQUID-based MCG system has a high potential for health care, especially because it could be used in hospital environments without expensive and inflexible magnetic shielded rooms. Recent availability of budget-price multichannel minisystems for unshielded MCG. MCG has been accepted as a clinical tool.

7. 7 Experimental results MCG – Animal Studies PHANTOM AND SOURCE MODELING

8. 8 MCG 84.6 % Sensitivity Specificity - 90 - - 80 - - 70 - - 60 - - 50 - - 40 - - 30 - - 20 - - 10 - ECG at rest Exercise-ECG Holter monitoring Stress-EchoCG PET Stress Scintigraphy ECG at rest Exercise-ECG Holter monitoring Stress-EchoCG PET Stress Scintigraphy MCG 90.5 % Sensitivity & Specificity of MCG in CAD with normal ECG Clinical Trials (CAD with normal ECG vs. Controls)

9. 9 Stage of development System is ready for application Clinical Trials: detection of myocardial ischemia and arrhythmogenic risk assessment

10. 10 Targeted Market Segment MCG can be used for noninvasive diagnosis of cardiac events related to : - coronary artery disease (CAD), - safety of all medical drugs with respect to the drugs potential to cause heart arrhythmia, - early detection of graft rejection after cardiac transplantation, - pathophysiological role and therapeutic potential of stem cells. Introduction of MCG diagnostics into routine clinical practice can improve patient outcomes, decrease mortality and risks, increase comfort and significantly reduce cost of health care. The cost of commercially available few-channel systems for unshielded MCG range between 200,000 and 500,000 US$

11. 11 Competition More expensive or invasive methods: - Stress-echocardiography, - Single photon emission computed tomography (SPECT) - Coronary angiography The cost of the equipment for MCG differs widely as function of approach prefered. Small unshielded systems can now be operated by nurses or research technicians

12. 12 Competitive Matrix Important product or technology characteristics Kiev Medical Group, Ltd. Cardio Mag Imaging Inc. Cryoton Co.Ltd Cost-effectiveness ------------------------- automated high complitely low semi middle semi The evaporation rate L/day 1,7 2,5 2 - 3 Solution of the Inverse problem (Software) modern old modern Costs ( X 1000 ) 200-300 > 300-500 > 300

13. 13 Opportunities We look forward on international collaboration for : clinical trials joint product development

14. 14 Contact information Dr.Volodymyr Sosnytskyy +38(044)5013072 sosna@uninet.kiev.ua Kiev Medical Group, Ltd. Kiev