Rheonix Receives $1.67 Million Award from National Institutes of Health

Ithaca, N.Y. — May 13, 2009 — Rheonix, Inc. today announced the receipt of a $1.67 Million award from the National Institutes of Health (NIH) as the Company and NIH establish a partnership for the development of point-of-care (POC) technologies for underserved and nontraditional health care settings such as rural and urban community public heath-care clinics and temporary medical facilities established in response to natural or human-made disasters.

“This significant financial support provided by NIH is additional validation of Rheonix’s business and scientific capabilities,” said Tony Eisenhut, Rheonix President and CEO. The highly-competitive award was made to Rheonix based upon the strength and versatility of its novel CARD™ (Chemistry And Reagent Device) microfluidic technology and the Company’s objective to fully integrate an electronic readout capability developed at and exclusively licensed on a worldwide basis from Cornell University.

A major strength of the CARD™ with readout is its ability to perform preparative and analytical steps and report results electronically without further hands-on effort once a clinical specimen is applied. This molecular testing model dramatically simplifies what are now very complex and tedious procedures. Not only will the portable device find use in the nontraditional health-care settings of interest to NIH, but its simplicity allows people of varying skill levels to perform extremely sophisticated molecular assays with the push of a button.

Richard Montagna, Ph.D., Senior Vice President for Scientific Affairs and the project’s Principal Investigator, pointed out that the Company’s proprietary production methods will permit the introduction of these POC devices at very competitive prices, thus helping to reduce the growing cost of health care. He went on to say, “We are extremely pleased that the NIH has the confidence in our technologies and staff to select us as a partner for this exciting cooperative program.”

Peng Zhou, Ph.D., Senior Vice President for Research and Development and Chief Scientific Officer, and Antje J. Baeumner, Ph.D., Professor of Biotechnology at Cornell University, will join Dr. Montagna as co-principal investigators as the coordinated effort among Rheonix, Cornell University, and NIH is undertaken.

The CARD™ diagnostic platform has applications in a broad spectrum of markets including human and veterinary in vitro diagnostics, biopharmaceutical manufacturing, food and beverage manufacturing, food/water safety testing, and homeland security/defense applications.