Medis El Ltd. Announces New Cash Infusion

13 July 1998

Medis El Ltd. Announces New Cash Infusion and Other Developments

    JERUSALEM--July 13, 1998--Medis El Ltd. today announced the receipt of an infusion of $2 million from major shareholder, Cell Diagnostics Inc. (CDI) in payment of the last installment of CDI's investment in Medis El. Of this amount, $500,000 was currently due, and $1.5 million was a prepayment.
    Because this payment was made for Medis El shares previously issued, there was no dilution of existing Medis El shareholders.
    Commenting on the payment, Robert K. Lifton, Chairman of Medis El, noted, "These funds come from existing shareholders of CDI including two major shareholders: myself and Howard Weingrow, by our purchase of additional shares of CDI. This further investment reflects our continuing confidence in the performance of Medis El's existing product lines, the Cellscan and the Stirling linear technologies and new developments in other company products.
    "The performance of the Cellscan since the revisions in the optical system and certain other elements has been far superior than the earlier systems'. As a result, Medis El is beginning broad scale testing in Israel and in Taiwan for early detection of breast cancer based upon promising preliminary results with a new specific breast cancer antigen developed for Medis El. Also, at the National Institute of Taiwan, testing will be started for early diagnosis of cervical cancer using a new antigen developed in a major United States research center.
    "Development of Medis El Stirling technologies continues to move forward. While the previously announced letter of intent with a marketer of consumer products has not resulted in a completed contract by the time of its expiration last week, discussions continue with that company as well as with others who may offer a better opportunity to become our first focus of development of refrigeration systems using the Medis El technology. At the same time, the patent process is moving forward on the Expander-Displacer part of our refrigeration system and on the Reciprocating Electric Machine.
    "Medis El continues its search for exciting new technologies as part of our overall program to become a "greenhouse" of advanced Israeli technologies, particularly those developed by former Russian scientists who emigrated to Israel, and is presently engaged in negotiations for various technologies which hold great promise," added Lifton.
    Medis El, founded in 1992, is an Israeli corporation involved in building pipeline of proprietary products based on Israeli and former Soviet Union technology for exploitation by large international corporations. The company recently obtained a patent on its Synchronous Twin Piston Reciprocating Linear Compressor, a revolutionary and environmentally-friendly, synchronous twin piston compressor that has high-value applications in the fields of refrigeration and air-conditioning. The company has in development, and has applied for, patents for a Reciprocating Electric Machine that it expects will substantially reduce the cost of producing electricity. The company's other products include the CellScan, a unique proprietary laser-based cytometer that repeatedly monitors the fluorescent intensity and polarization of individual living cells, and is being used in tests for diagnosis of cancer and other diseases.
    This press release contains forward-looking statements that involve risks and uncertainties, including but not limited to quarterly fluctuations in results, the management of growth, regulatory changes, and other risks detailed from time to time in the Company's Securities and Exchange Commission filings. Actual results may differ materially from such information set forth herein. In addition, the Company's growth is dependent upon, among other things: continuing high demand for cruiser motorcycles, the Company's ability to compete in a highly competitive market, the Company's ability to increase motorcycle production, the Company's ability to satisfy its substantial additional capital requirements, the Company's ability to hire and retain key employees, and the Company's relationships with its customers and vendors. There can be no assurance that the Company will be successful in addressing any of these risks or that its sales and earnings will grow in the future as a result of these risks or others.
    This release is available on the KCSA Worldwide Website at www.kcsa.com.