HydroCision Announces the Release of the
SpineJet™ Hydrosurgery System for Spine Surgery

ANDOVER, Mass., July 23, 2003 – HydroCision, Inc. (www.hydrocision.com) announced today the initial release of its SpineJet™ Hydrosurgery System in the United States. This marks HydroCision's entry into the large and technologically advanced spine segment of the orthopedic market. The SpineJet Resector™, provides spine surgeons with a powered device to quickly, safely, and selectively remove soft tissue, such as disc nucleus and annulus, in preparation for disc graft implantation during open and minimally invasive spinal fusion procedures. The company is developing additional products to address other aspects of spine surgery, including laminectomies and discectomies. Industry estimates state that there are over 2 million spine procedures performed each year worldwide.

The SpineJet Resector is a fluidjet-based surgical instrument powered by HydroCision’s patented HydroDrive™ Technology, which enables the surgeon to simultaneously hold, cut, and remove tissue precisely and effectively – without the repetitive motion associated with current surgical modalities. Removal of the disc is achieved in a single step with a single instrument while preserving the surrounding tissue.

“Our entry into the spine market with the launch of the SpineJet System is a key strategic and financial achievement for our company,” commented Doug Daniels, President and CEO of HydroCision, Inc. “The spine market represents an important opportunity for HydroCision, and we believe the SpineJet System is a significant advancement over the current surgical tools used by spine surgeons. Our first device, the SpineJet Resector, enables spine surgeons to perform fusion procedures quickly and effectively. The feedback we have received from orthopedic and neuro-spine surgeons in many clinical applications has been very positive. We look forward to providing spine surgeons with the tools they will need to provide their patients with great clinical outcomes. HydroCision is in a unique position to be the technological leader with its proprietary fluidjet technology and we look forward to showing our technology to leading spine surgeons in the U.S. and Europe."

Dr. Steven M. Reich, Assistant Professor of Orthopedic Surgery at the University of Medicine and Dentistry of New Jersey, Robert Wood Johnson Medical School and Robert Wood Johnson Hospital, who has used the SpineJet in multiple cases remarked, “The SpineJet Resector allows for rapid, controlled, and accurate removal of disc material in preparation for interbody arthrodesis. Maximum disc material removal should ultimately lead to a better fusion result. When I use the SpineJet Resector I can decrease surgical and retraction time, and limit the need for numerous passes of various instruments in order to resect disc material from the interspace. Fewer instruments in and out of the disc space, and avoidance of hand instrument contact with deep retractors results in increased safety”. HydroCision plans to expand distribution of the SpineJet Hydrosurgery System to Europe in the fourth quarter of 2003.

About HydroCision

HydroCision is the leading developer, manufacturer and marketer of fluidjet-based surgical tools that are the foundation of a new surgical modality – ‘hydrosurgery’. Hydrosurgery improves patient care by selectively removing tissue, minimizing collateral damage and bleeding, and promoting the healing process. HydroCision believes its proprietary fluidjet technology platform is the basis of a new surgical modality because of its compelling features and versatility. Incorporated in 1996, the company continues to develop a broad range of fluidjet-based devices to meet the needs of multiple specialties. Current investors include Zero Stage Capital, Newbury Ventures, and Oxford Bioscience Partners.

HydroCision is a registered trademark of HydroCision, Inc. SpineJet, SpineJet Resector, and The Leader in Hydrosurgery are trademarks of HydroCision, Inc.