MTMD Microtek Medical Hldgs (MM)

Microtek Medical Holdings Completes License Agreement for OREX Materials and Processing Technology for Nuclear Applications COLUMBUS, Miss., Oct. 1 /PRNewswire-FirstCall/ -- Microtek Medical Holdings, Inc. (NASDAQ:MTMD), a leading manufacturer and marketer of infection control products, fluid control products and safety products to healthcare professionals, announced today the signing of an agreement which grants to Eastern Technologies, Inc. ("ETI") a worldwide exclusive license to manufacture, use and sell the Company's OREX materials and processing technology in the nuclear industry, homeland security industry and certain other industrial applications (the "OREX Nuclear Business"). Dan R. Lee, Microtek's President and Chief Executive Officer commented, "The completion of this agreement is a positive development for Microtek and for our shareholders. As we have discussed numerous times, over the long term, the OREX Nuclear Business is not complementary to Microtek's healthcare strategies. Our intention with respect to the OREX Nuclear Business has always been to nurture that business into commercialization, and then, at the appropriate time and when in the best interest of our shareholders, to explore other alternatives. With this licensing agreement, we have done exactly as we promised. We have structured a transaction that separates the OREX Nuclear Business from our healthcare operations, thereby enabling uncompromised focus on our strategic healthcare initiatives and increased transparency on our healthcare results. We have licensed the OREX technology for use in the OREX Nuclear Business to Eastern Technologies which, together with its principals, has led the growth of the OREX Nuclear Business over the last three years." Mr. Lee continued, "Concurrent with the signing of this license agreement, we have also agreed to support ETI in certain management, procurement and other logistical operations related to the OREX Nuclear Business for a period of three years, all with the purpose of enabling ETI's continuing development of the OREX Nuclear Business. Through guaranteed royalties, management fees and proceeds from the sale of certain equipment and inventories to ETI, we expect to generate cash flows in excess of $10 million over the first three- year period, with the potential for further royalties continuing for the remaining life of the license agreement. We are excited about the prospects of working with ETI and wish them much success as they continue to revolutionize personal protection and material processing offerings to the nuclear industry." Actual Results Could Differ From Forward-Looking Statements: This Press Release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, the Company's expectations about the amount of guaranteed royalties, management fees and proceeds from the sale of equipment and inventories to ETI to be received over the first three years following the signing of the license agreement and potential for further royalties to be received over the remaining life of the license agreement. Such statements are subject to certain factors, risks and uncertainties that may cause actual results, events and performance to differ from those referred to in such statements. These risks include, without limitation, those identified in Risk Factors in the Company's Annual Report on Form 10-K for the year ended December 31, 2003, including, without limitation, the risks described in Risk Factors under the captions "-Reliance upon Microtek," "-History of Net Losses," "-Competition," "-Product Liability," "-Stock Price Volatility," "-Dependence on Key Personnel," "-Anti-takeover Provisions," "-Low Barriers to Entry for Competitive Products," "-Potential Erosion of Profit Margins," "-Risks of Completing Acquisitions," "-Risks of Successfully Integrating Acquisitions," "-Small Sales and Marketing Force," "-Reliance upon Distributors," "-Reliance Upon Large Customers," "-Microtek Regulatory Risks," "-Risks of Obsolescence," "-Reduced OREX Market Potential," "OREX Commercialization Risks," "-OREX Manufacturing and Supply Risks," "-Risks Affecting Protection of Technology," "-Risks of Technological Obsolescence" and "-OTI Regulatory Risks." We do not undertake to update our forward- looking statements to reflect future events or circumstances. About Microtek: The Company, a market leader in the healthcare industry, develops, manufactures and sells infection control products, fluid control products and safety products to healthcare professionals for use in environments such as operating rooms and outpatient surgical centers. About Eastern Technologies, Inc.: Eastern Technologies, Inc. ("ETI") has long been a reputable supplier of laundry services to the nuclear industry. The strategic alliance between ETI and OREX Technologies International has led to the paradigm shift in protective clothing approaches throughout the U.S. commercial nuclear industry over the past three years. ETI's business is structured around its core philosophy of customer service. The ETI staff possesses numerous years of nuclear experience and decades of laundry processing technical experience. ETI prides itself in its ability to offer its customers a wide range of options with regard to protective clothing and associated processing services. For More Information, Please Call (800) 476-5973 Dan R. Lee, President & CEO Jerry Wilson, CFO John Mills, Investor Relations DATASOURCE: Microtek Medical Holdings, Inc. CONTACT: Dan R. Lee, President & CEO, or Jerry Wilson, CFO, or Investor Relations, John Mills, of Microtek Medical Holdings, Inc., +1-800-476-5973 Web site: http://www.microtekmed.com/

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