Spiration, Inc. Signs Agreement with Olympus Medical Systems for Development and...

Spiration, Inc. Signs Agreement with Olympus Medical Systems for Development and Distribution Rights of Minimally Invasive Pulmonary Device Therapy in Japan

Agreement with Healthcare Leader Represents First of Kind Intended
to Bring Access to New Emphysema Treatment to Japan
REDMOND, Wash.--(Business Wire)--
Spiration, Inc., a developer of novel medical devices designed to
benefit patients with severe and chronic conditions of the lung,
announced today that it has signed a definitive agreement giving
Olympus Medical Systems Corp. exclusive development and distribution
rights in Japan for the IBV(R) Valve System.

The IBV Valve System is a minimally invasive treatment that has
diverse applications in both acute and chronic conditions of the lung.
In Europe, the system has received market clearance through CE Mark
for the treatment of diseased and damaged lung, a broad indication
that includes the treatment of emphysema and the resolution of
prolonged air leaks, which can occur following lung surgery. The
device is currently under investigation in the U.S. as a new treatment
option for patients with severe emphysema.

Under the terms of the agreement, Spiration(R) and Olympus will
work exclusively with each other to gain regulatory approval for the
IBV Valve System in Japan. Olympus will be responsible for and fund
all required Japanese clinical trials for the treatment of emphysema
and the resolution of prolonged air leaks. Olympus will also file the
necessary government applications to market the device. The financial
terms of the agreement were not disclosed.

"Olympus, with its strong knowledge of the marketplace in Japan
and its status as the world's leading provider of bronchoscopy tools
to pulmonologists, is an ideal partner for Spiration," said Rick Shea,
president and CEO, Spiration, Inc. "We look forward to working
together to advancing our therapy in Japan, where we believe our
technology will help many people living with the debilitating effects
of emphysema, a condition that is chronic and severely impacts quality
of life."

In May 2008 Spiration and Olympus announced a definitive agreement
granting Olympus exclusive marketing and distribution rights in 43
European countries for the IBV Valve System.

About the IBV Valve System

The IBV Valve System was developed as a potential treatment
alternative for the many people with emphysema who do not respond well
to current medical therapies or are not eligible for invasive surgery
such as lung volume reduction or lung transplantation. In addition,
the IBV Valve System may also be used to resolve prolonged air leaks
that can occur following lung surgery.

For the treatment of emphysema, the IBV Valve System is designed
to redirect airflow from diseased portions of the lung to healthier
areas. During the minimally invasive procedure, a catheter is passed
through a bronchoscope (a flexible tube passed into the bronchial
tubes through the mouth or nose) to deploy the small umbrella-shaped
valves into the airways of the upper lobes of the lungs.

About Spiration, Inc.

Spiration, Inc. is committed to improving quality of life for
patients with acute and chronic conditions of the lung through the
development of novel therapies. Founded in 1999 in Redmond, Wash., the
privately held company is backed by prominent investors including
Three Arch Partners, New Enterprise Associates, Versant Ventures,
Sprout Group (New Leaf Ventures), InterWest Partners, Investor Growth
Capital, Boston Scientific Corporation and Olympus Medical Systems
Corp. For more information, visit the company's website at
www.spiration.com.

The IBV Valve System is an investigational device in the United
States. The IBV Valve System has the CE Mark in the EU. CAUTION -
Investigational device limited by Federal (or U.S.) law to
investigational use.

For Spiration, Inc.
Nicole Osmer, 650-454-0504
nicole@nicoleosmer.com

Copyright Business Wire 2008