CLEVELAND, Nov. 26 /PRNewswire/ -- Cleveland's BioEnterprise Corporation
has signed a business development agreement with MDG Medical, Inc.  MDG,
founded in Israel in 2000, develops computerized medication administration
systems for use in hospitals and other health care institutions. It will
establish a co-location in Cleveland and will receive a range of business
development services through the agreement with BioEnterprise.

    BioEnterprise will assist MDG in:

    * Development of a U.S. product and market strategy
    * Identification and launch of a beta site for the MDG system in America
    * Selection of the U.S. management team
    * Accessing U.S. investment capital

    MDG Medical's main product is the ServeRx(R) system, which enables
hospital or long-term care staff to administer prescription medications
through secure dispensation, administration, and reporting of activities.
    According to a landmark 1999 study by the Institute of Medicine, over one
million Americans suffer annually from improperly distributed medication. Over
100,000 die as a result.
    The ServeRx(R) system is aimed at medical care facilities with fewer than
300 beds -- which includes a majority of U.S. hospitals and nursing homes. Due
to the high cost of computerized medication management systems in the market
today, less than five percent of these facilities have such systems.  More
than 5,000 U.S. hospitals, 3,500 inpatient health institutions, and 17,000
nursing homes are among potential customers for MDG technology.
    MDG's working prototype is installed and successfully operating at the
company's first beta site in Sheba (Tel Hashomer) Hospital, Tel Aviv.
Additional beta sites are planned for Israel and Europe in early 2003, and a
U.S. site will follow.
    "We are extremely pleased by our new relationship with MDG Medical. We
believe this company can become a significant player in its target market,"
said Matt Jennings, BioEnterprise President, in announcing the relationship.
"MDG's product has been demonstrated to be superior to other similar products
in its early beta-site testing.  For this reason, we feel MDG is well
positioned to grow."
    "We selected BioEnterprise to blaze the trail for MDG in North America
because of the quality of resources they bring to the table," said Israel
Tapoohi, Chairman and CEO of InQSOFT, an Israeli high-technology incubator
supporting MDG. "BioEnterprise triumphed over other business development
groups as a result of their experienced senior management team, institutional
contacts, and their commitment to do what it takes to build the MDG business.
We look forward to growing our operations from Cleveland."
    In exchange for its services, BioEnterprise will receive an equity stake
in MDG and representation on the firm's board of directors and advisory board.

    BioEnterprise Corporation is a business formation, recruitment, and
acceleration company committed to supporting the growth of bioscience
companies.  BioEnterprise provides mission-critical senior management and
support services to early stage and emerging growth companies. The
BioEnterprise management team is comprised of executives with extensive
experience in growing bioscience and technology companies.
    Located in Cleveland, Ohio, its founders and equal partners are Case
Western Reserve University, The Cleveland Clinic Foundation, and University
Hospitals Health System, Inc.  Additional regional technology partners include
the NASA Glenn Research Center, Cleveland State University, and NorTech.

    MDG Medical is an Israeli company headquartered in Tel Aviv.  Its products
include the ServeRx system for reducing adverse drug events and improving
nursing workflow.  MDG Medical has been working closely with InQSOFT, a high-
technology Israeli incubator founded by its Chief Executive Israel Tapoohi,
former Chairman of the Board of Bezeq, Israel's telecommunications provider.
InQSOFT evaluates and pursues Israeli investment opportunities in innovative
technological areas.
    MDG Medical Inc. is funded by LSKW Investment LP, a U.S. based private
equity venture capital group led by Ronald Lauder, a principal shareholder of
Estee Lauder & Co.  LSKW was formed specifically for investment and
development of Israeli discovered new technologies.  Additional lead investors
of the LSKW group include Michael Siegal, Chairman and Chief Executive of
Olympic Steel, Inc., and Dr. David Khalili of London, of the Khalili Family
Trust.

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