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In today's healthcare environment, cost control has become a major factor in the assessment of surgical Trocar systems. Reusable surgical instrumentation, rather than single-use disposable devices, should be a primary focus to reduce operating room costs. The T2000 combines the convenience of a disposable trocar and the cost savings of a reusable trocar without sacrificing the quality of its construction or the features that it offers surgeons. The T2000 utilizes a consistently sharp, replaceable tip and a reliable shielding mechanism for the tip that permits the T2000 to be easily cleaned while also offering quality construction, state of the art materials, and interchangeability. We believe that the T2000 will uniquely satisfy the desire of hospitals and their administrators to control soaring costs while also meeting the demands of surgeons for versatility and quality of construction.

Surgery has traditionally required making large incisions, 12 to 24 inches long to perform surgery. This incision, and the significant dissection needed to allow the surgeon to visualize the field, are the parts of the operation that cause most of the pain and contribute to slow patient recovery.

Laparoscopic surgery is a technique, which allows the surgeon to perform the operation through multiple small incisions with the aid of a video camera and special instruments. Laparoscopic surgery is also called minimally invasive surgery.

Minimally invasive surgery is an approach where the same operations are performed using specialized instruments designed to fit into the body through several small punctures instead of one large incision. Instead of looking directly at the part of the body being treated, the physician monitors the procedure via a special video camera system called a laparoscope inserted through one of the small punctures. This can actually allow better visualization of the operative site for more precise work. By eliminating the large incision and extensive dissections, much of the pain of recovery can also be eliminated. This minimally invasive or laparoscopic surgery is also known as "keyhole" surgery, "micro" surgery, and telescopic surgery.

Minimally invasive surgery represents a relatively new class of surgical procedures that incorporate the use of a 10mm or smaller fiber optic laparoscope that connects to a video monitor. The laparoscope is used to perform surgery in or around the abdominal cavity, known as laparoscopy or the laparoscopic approach.

The minimally invasive technique of laparoscopic surgery was successfully introduced for gynecological procedures in the early 1970's. Since 1988, when laparoscopy was first used for cholecystectomy, gallbladder removal, patient demand has contributed to a rapid expansion in the number of laparoscopic procedures performed. Using a thin tubular telescope and a tiny high-resolution video camera, the surgeon can see, on a TV monitor, what the camera sees inside the abdomen, through a pencil-sized "portal" passed through the abdominal wall. Other portals are placed through which long, slender instruments can be inserted to do the actual surgery. There is no large and painful incision. Patients who have undergone laparoscopic gallbladder surgery can attest to reduced discomfort, rapid recovery, and excellent cosmetic results that are usually achieved with this method. Today, 95 percent of gallbladder removals are performed laparoscopically and the approach has been adapted successfully for many other types of surgery.

Therapeutic laparoscopy in general surgery was established in the late 1980s with its use in performing cholecystectomies, hernia repairs and other procedures. The impetus for its growth has been decreased invasiveness and its resultant advantages, including shorter hospital stays, less postoperative pain, earlier return to work and routine activities of daily living and greater cost effectiveness.

Laparoscopy experienced explosive growth with respect to instrument development and sales. The current market size for all laparoscopic procedures is 1,957,700 and is expected to grow to 2,303,303 by the year 2003. Companies such as US Surgical and Ethicon Endo-Surgery began to compete for the highly lucrative market of laparoscopic instrumentation, primarily trocars. When compared against the market size for laparoscopic procedures, trocars are estimated to generate annual sales of over $300,000,000. Trocars are the utility instrument for all laparoscopic procedures.

A trocar’s main purpose is to penetrate the abdominal wall and allow access to the body cavity in which a procedure is performed. It is the one common instrument used in all procedures and the average number required is four per procedure. Each trocar allows the surgeon to pass a scope, instrument or other device to complete the procedure. US Surgical and Ethicon Endo-Surgery have dominated the market over the past 10 years with convenient, disposable trocar systems which cost roughly 90% more than our expected cost of the T2000 Reusable Trocar System per procedure.

In the healthcare industry today, there is a much greater awareness than ever before of the need to reduce cost and look for alternatives to traditional methods of doing business as a result of changes in reimbursement from third party payors. The laparoscopic surgical market has expanded rapidly in the past several years and growth is expected to continue at a strong pace as new surgical techniques and approaches are developed using minimally invasive technology. We intend to address the needs of customers in this market who seek solutions to the rising cost of surgical services by providing the highest quality surgical instrumentation and at the same time reduce the cost of each procedure by 50-60%. The number of hospitals and outpatient surgery centers that are candidates for sales of our T2000 Reusable Trocar System is over 6,000 nationwide.

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