SANTA CLARA, Calif., Sept. 6 /PRNewswire/ -- Applied Imaging Corp.
(Nasdaq: AICX) announced that it has received 510(k) clearance from the U.S.
Food and Drug Administration (FDA) to market its MDS(TM) system for detecting
micrometastatic cells associated with the spread of cancer.  The MDS, a
scanning microscopy platform, has been cleared for in vitro diagnostic use as
an aid to pathologists in the detection and classification of specific rare
cancer cells in bone marrow specimens.
    The ability to detect and characterize micrometastatic cancer cells
provides the oncologist with important additional information for the
selection of the most appropriate treatment for the patient.  In particular,
the detection of micrometastasis may lead to more aggressive treatment and
follow-up than would otherwise be indicated.
    According to Jack Goldstein, PhD, Chairman and Chief Executive Officer of
Applied Imaging, "This rapid FDA clearance of the first clinical application
for the MDS represents the achievement of a significant milestone for the
company.  Our clinical data showed that pathologists using the MDS detected
46% more patients with metastatic cells than they detected by unaided
microscopic examination.  This substantial improvement will allow us to market
the MDS system to thousands of cancer centers worldwide, presenting us with a
dramatically expanded opportunity for the company's products."
    "We plan to release additional applications that can genetically
characterize cancer cells, by taking advantage of the unique ability of the
MDS to conduct simultaneous fluorescent and brightfield studies, essential
techniques for the automated analysis of DNA and RNA probes," added Goldstein.
    Applied Imaging Corp., based in Santa Clara, California, is the leading
supplier of automated imaging systems utilized in genetics and pathology
laboratories for the analysis of chromosomes in cancer and prenatal disorders.
The Company is expanding its efforts in scanning and imaging applications in
the cancer pathology field.  Applied Imaging has installed over 2000 systems
in 1000 laboratories in more than 35 countries.
    This press release contains forward looking statements as defined in the
Private Securities Litigation Reform Act of 1995, regarding, among other
matters, the Company's future financial performance as well as its research
and development and product development efforts.  Forward looking statements
address matters that are subject to a number of risks and uncertainties,
including the uncertainty of clinical studies and regulatory approvals.
Actual results could differ materially from those projected in the forward-
looking statement as a result of a number of factors including the failure of
the Company to successfully develop and commercialize its micrometastasis or
genetic instrument business, and other such factors as set forth in the
Company's Form 10-K for the year ended December 31, 1999 as filed with the
Securities and Exchange Commission.
    For additional information on Applied Imaging via fax,
please dial 1-800-PRO-INFO, (732-544-2850 outside of the U.S.), code AICX.

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