Orbasone Company History

(ESWT) systems for non-invasive treatment of pain associated with Plantar Fasciitis
(Orbasone™ system); (ii) patented motorized exercise systems for rehabilitation,
physical therapy and sports medicine based on patented vibration technology (VibraFlex®
Rx, Mini VibraFlex® and Galileo™ series), (iii) human performance measurement
systems for monitoring improvement in power and mobility (Leonardo™ system) and
(iv) peripheral Quantitative Computed Tomography (pQCT®) bone and muscle
measurement systems for research and clinical applications. The Company also markets,
sells and services through its Sports & Fitness Division patented motorized exercise
systems to professional teams, fitness centers, gyms, sports clubs and to the wellness-
conscious general public (VibraFlex® 500 and Mini VibraFlex® Plus series).

Orthometrix, Inc. (“Orthometrix”) was created in 1993 to bring point-of-care cost-effective
bone densitometry to U.S. physicians in the wake of the approval by the Food and Drug
Administration (FDA) of Fosamax®, the first major therapy against osteoporosis developed
by Merck & Co., Inc. (NYSE: MRK). Non-invasive bone densitometry is one of several tools
used by physicians to diagnose osteoporosis, a debilitating disease which leads to loss of
mobility and independent, and often death (hip fracture).

While developing, marketing and servicing increasingly more affordable bone
densitometers, the Company focused its research and development on non-pharmaceutical
ways to prevent the deterioration of bone architecture in post menopausal women which
eventually lead to hip fractures. In particular, a more global “musculoskeletal” approach of
the problem was designed and the first Galileo patent application filed in 1996 by an
affiliate of the Company. In summary, the idea was to use of involuntary stretch reflex (25
Hz or 25 impulses per second) to mechanically exercise the muscles in the legs, which
would in turn beneficially and naturally affect the related bones. It soon became clear that
the process had a beneficial effect that extended beyond bones and affected the entire
neuronal system, increasing power and flexibility, i.e. human performance and mobility.

On April 11, 2002, the Company sold its traditional bone densitometry product lines and its
Wisconsin-based manufacturing facility to Cooper Surgical Corporation, a subsidiary of the
Cooper Companies (NYSE: COO) and focused its resources on the development of its
musculoskeletal technologies and devices to address the following large markets:

•        Pain Management;
•        Rehabilitation and Physical Therapy;
•        Sports & Fitness;
•        Musculoskeletal Research.

The Company has standing agreements and strategic alliances with the following
manufacturing facilities and technology-based entities:

•        Kimchuk, Inc. (“Kimchuk”) manufactures in the US the Orbasone™ ESWT pain
management system that the Company markets, sells and services in the US and Canada,
and the VibraFlex® whole body vibration exercise systems series (500 and Rx models) that
the Company markets, sells and services worldwide.

•        The perpetual exclusive license to manufacture, market, sell and service the
Orbasone™ ESWT pain management device in the U.S. and Canada was acquired from
Minimally Invasive Products GmbH (“MIP”). Based on a technology used in lithotripsy for
non-invasive treatment of kidney stones (Extracorporeal Shock Wave Therapy or ESWT),
the Orbasone is used in several countries in Europe/Asia for the reduction of pain in soft
tissues (foot, ankle, elbow and shoulder areas). The Orbasone has been approved for sale
in Canada by Health Canada as a Class III device for the treatment of Plantar Fasciitis (foot
pain). It has also has been approved for sale in the US by the U.S. Food and Drug
Administration (FDA) as a Class III device for the treatment of Plantar Fasciitis following a
multi-center clinical study as part of a Pre-Market Approval (PMA) process.

•        The VibraFlex series has been developed by the Company under license to make the
powerful Galileo technology affordable by the rehabilitation industry (physical therapy and
sports medicine), to the sports & fitness industry (professional teams, personal trainers,
gyms and clubs) and eventually to the public. Based on a new and patented concept, the
VibraFlex Rx model is a motorized system used to facilitate exercise by patients with
conditions affecting muscle, tendons and ligaments, poor muscle strength and coordination,
and poor blood circulation (spinal cord injuries, Osteoarthritis, Incontinence, Diabetes,
Parkinson’s disease). The VibraFlex 500 model helps maintain or increase flexibility and
overall muscle performance, at the gym or at home. It also helps develop explosive power
essential in sports such as baseball, basketball, football and hockey.

•        Novotec Medical GmbH (“Novotec”) manufactures in Germany the Galileo™ line of
whole body exercise systems and the Leonardo™ human performance measurement
system that the Company markets, sells and services in the U.S. and Canada. Novotec also
manufactures for the Company the Mini VibraFlex® series (Mini and Mini Plus) of hand-held
exercise systems that the Company markets, sells and services worldwide.

•        Stratec Medizintechnik GmbH (“Stratec”) manufactures in Germany the pQCT® line
that the Company markets, sells and services in the U.S. and Canada. Peripheral
Quantitative Computed Tomography (pQCT) is an advanced x–ray technology which is
increasingly used is bone and muscle research and in specific clinical specialties such as
orthopedics and pediatrics. The pQCT line provides the Company with minimum revenues
until FDA market clearance is secured for its first major musculoskeletal product.