December 15, 2005

Sontra Medical announced it has amended its license agreement with Bayer HealthCare's Diabetes Care Division for the development of Sontra's continuous glucose monitor.

Under the amended agreement, Sontra will have worldwide coexclusive rights to develop and market Sontra's continuous transdermal glucose monitoring system using the SonoPrep ultrasonic skin permeation technology for the hospital intensive care unit (ICU) market. In exchange, Sontra has agreed to reduce to $2 million Bayer's milestone payment to Sontra, which is due upon Bayer's completion of the first phase of product development. Sontra also has agreed to pay Bayer a royalty of 1 percent of Sontra's net product sales in the hospital ICU market.

"Both companies understand the usefulness of Sontra's technology in critical care medicine and appreciate the narrow window of opportunity to develop a product for that market segment," said Thomas Davison, president and CEO of Sontra. Sontra has completed the first prototypes of its continuous glucose monitor for the ICU, and expects to begin human clinical studies in early 2006, he said. More importantly, the firm is on track to complete product development of the SonoPrep skin permeation and glucose sensing technology for the ICU by the end of 2006, Davison added.

"Sontra's continuous glucose monitor has shown promise in pilot clinical trials in patients and the Sontra management team has identified a market opportunity for this technology in the hospital ICU market," said Sandra Peterson, president of Bayer HealthCare's Diabetes Care Division. "We are pleased to have advanced our relationship with Sontra."

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