Med-Design Acquires Innovative Low Profile Safety Huber Needle from Luther Needlesafe Products, Inc.

VENTURA, Calif.--()--April 2, 2004--Med-Design Corporation (Nasdaq:MEDC):

-- Second Contract-Manufactured Product for Med-Design Offers Immediate Revenue Source

-- Company to Discuss Details Regarding Acquisition on Conference Call 9:00 a.m. EDT, Monday, April 5, 2004

The Med-Design Corporation (Nasdaq:MEDC), a leader in the design and development of safety-engineered devices for medical use, today announced it has acquired assets of the Low Profile Safety Huber Needle business from Luther Needlesafe Products, Inc., a private company based in California, for a total consideration of $5.6 million in cash, $250,000 in stock and an additional $1.15 million in consulting fees and deferred payments to be paid in cash or, at Med-Design's option, partly in stock, over the next four years.

Under terms of the agreement, Med-Design has acquired all of the assets currently owned by Luther Needlesafe Products related to the Safety Huber Needle technology, including molds and equipment, sublicensed certain rights to intellectual property, and received assignments of contracts with the distributors selling the product, group purchasing organizations who have agreed to purchase the device, and the contract manufacturer. The acquisition, which will provide an ongoing revenue stream for Med-Design, is accretive to earnings and adds an important device to Med-Design's expanding portfolio of safety products.

The Luther Low Profile Safety Huber Needle, used for percutaneous connection to implanted vascular access ports for the infusion of chemotherapeutic agents, was launched in the U.S. in October 2003 into a market that is experiencing rapid conversion to safety devices. Sales of the Low Profile Safety Huber Needle have increased each month since the introduction of the product, reaching $290,000 in revenue for the first two months of 2004.

"Based on sales results since the product was launched in October 2003, we are excited about the potential for the device, which we anticipate will continue to show increased sales quarter by quarter," said Med-Design Chairman and CEO James Donegan. "This acquisition expands our safety product line and provides contract manufacturing capability and an established distribution channel for the product."

"Our market research showed that users of the Luther Low Profile Safety Huber Needle have been delighted with its performance," said David Dowsett, Med-Design's Chief Operating Officer. "We believe the Luther device has many of the design features important to both patient comfort and user safety. From a business perspective, this product creates an immediate revenue stream for Med-Design and uses a contract manufacturing model similar to the one we established for the 1Shot Safety Dental Syringe."

The product will continue to be manufactured for Med-Design by Plastics Engineering and Development, Inc. (PEDI), a private company based in Carlsbad, Calif. PEDI, a leading provider of high quality injection molded parts, will manage all aspects of production for the product line. Additionally, Med-Design will to continue to have product distribution in the U.S. and Canada managed by the New Alliance of Independent Medical Distributors, Inc. (Alliance Medical) based in Austin, Texas. Alliance Medical is comprised of several major independent medical products distributors in the U.S. with over 100 sales and marketing representatives. International distribution opportunities, which are not included in current sales, will be pursued in the future by Med-Design's new Director of Business Development and Marketing, David Seitelman.

The Sparton Group, LLC provided financial advisory services to Med-Design relative to this transaction.

Conference Call Information

In order to provide information regarding the acquisition, Med-Design will host a conference call on Monday, April 5, 2004, at 9:00 a.m. EDT (6:00 a.m. PDT). Individuals wishing to view the Webcast can access the event at www.med-design.com and advance the slides at their own pace.

Toll-free telephone lines have been set up to listen to the presentation and participate in a question and answer session.

-- Call-in number: 1-800-299-9630

-- International call-in number: 1-617-786-2904

-- Passcode: 19444583

A recorded version of the presentation can be accessed two hours after the conclusion of the call until April 26, 2004.

-- Call-in number: 1-888-286-8010

-- International call-in number: 1- 617-801-6888

-- Passcode: 12725738

About Med-Design

Founded in 1990, the Med-Design Corporation has developed technology related to 38 safety needle products designed to enable medical workers to perform a wide range of medical procedures with products that retract the needle into a protective housing rendering the contaminated needle inoperative. Med-Design's safety needle products and technologies cover applications within the important risk areas of blood collection, infusion therapy, venous and arterial insertion, injection and pharmaceutical packaging. Med-Design develops user-friendly and cost-effective safety needle devices and technologies, utilizing its expertise in creating technology for products that meet stringent user requirements, while minimizing manufacturing cost. Med-Design has a significant portfolio of issued patents and pending patent applications protecting its proprietary safety needle technology. Approximately half of Med-Design's product designs have been licensed to market leaders or are manufactured by Med-Design for sale through distribution agreements. Med-Design is actively seeking partners for its remaining products and designs.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995, including, among others, statements regarding the manufacture and distribution of, and revenues and earnings to be generated by, the Low Profile Safety Huber Needle, as well as the pursuit of international business opportunities. There are important factors that could cause actual results to differ materially from those expressed or implied by such forward looking statements, including lack of demand or low demand for the Low Profile Safety Huber Needle, manufacturing delays or cost overruns encountered by Med-Design or PEDI, competition and other factors discussed in our filings with the Securities and Exchange Commission.

For more information and to view Med-Design's retracting needle safety technology, please visit www.med-design.com.

Contacts

Med-Design Corporation
James Donegan/David Dowsett, 805-339-0375
www.med-design.com
or
Tierney Communications
Denise Portner, 215-790-4395

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Contacts

Med-Design Corporation
James Donegan/David Dowsett, 805-339-0375
www.med-design.com
or
Tierney Communications
Denise Portner, 215-790-4395