Press ReleaseSource: CSMG Technologies, Inc.
CSMG Technologies Announces Results of Shareholder Meeting and Proxy Vote; Status of Live Tissue Connect Subsidiary
Thursday January 4, 12:03 pm ET
CORPUS CHRISTI, Texas--(BUSINESS WIRE)--CSMG Technologies, Inc. (OTCBB: CTUM - News) announced the status of current operations, milestones achieved during 2006 and goals for this year, at its January 3, 2007 shareholder meeting. Additionally, all proposals recommended by the Board in the proxy were approved by company shareholders.
The company's presentation to shareholders included achievements realized during 2006, including project progress listed below, especially for its Live Tissue Connect ("LTC") subsidiary:

• Successful LTC Duct and Vessel sealer prototype completion-- first tissue welding product anticipated to be brought to surgical and healthcare markets
• Currently completing second specialized prototype device for end-to-end and end-to-side intestine reconnection
• Identified 13 different procedures requiring a unique device, thus providing 13 different licensing or marketing opportunities for LTC
• Arranged and received a $2.75 million bridge loan from investment banking firm Empire Financial Group (AMEX: EFH - News)
• Hired Frank D'Amelio, one of the leading U.S. medical device executives, as consultant to complete U.S. FDA, European CE Mark filings, and take LTC products to market
• Retained one of the U.S. leading FDA compliance law firms to work on FDA and CE Mark regulatory filing
• Currently completing agreements with U.S. medical device manufacturers to manufacture LTC devices for worldwide distribution
• Negotiating with a number of medical device distributors for licensing opportunities
• Negotiated a firm commitment to raise a minimum $5 million for an Initial Public Offering (IPO) of LTC from Empire Financial Group (AMEX: EFH - News)
• 29 U.S. and foreign patents are issued or pending

The presentation also reviewed the company's business expectations for 2007, as listed below:

• Completion of end-to-end and end-to-side intestine reconnection prototype expected to be completed by end of first quarter 2007
• Expect to file with FDA by the end of the first quarter 2007
• Expect to complete European CE Mark compliance by end of second quarter 2007
• Expect to complete a LTC license agreement for Eastern Europe during the first quarter 2007
• LTC Initial Public Offering anticipated mid-year 2007

Donald S. Robbins, president and CEO of CSMG, said "We at CTUM wish to thank the CTUM shareholders for their continued support of our company. We believe 2007 holds great promise for bringing our LTC products to market. We are enthusiastic over the prospects, and in particular, the opportunities that are quickly developing with the Tissue Welding Technology. Under Frank D'Amelio's leadership we have quickly poised LTC for commercialization."
Mr. D'Amelio added, "We have made significant progress in just the last 60 days. In this period of time, we developed a 'go-to-production' plan for the U.S. and European markets. We have received quotes from multiple companies who want to manufacture our unique tissue-welding generator and our first series of open tissue-fusing forceps. Our clinical procedures in the Ukraine have demonstrated the versatility of the technology and we have implemented active R&D projects in support of a robust new product pipeline. During the first quarter of 2007 we will start the manufacturing process, U.S. laboratory studies and ready our initial FDA 510k for submission."
About CSMG Technologies' Tissue Welding/Bonding Technology
Surgeons at 27 Ukraine hospitals and clinics are using the tissue welding/bonding technology in clinical trials. They have completed more than 7,000 human surgeries using more than 80 types of open and laparoscopic surgical procedures, demonstrating the technology is universal in its ability to repair soft biological tissue. These surgeries included lung, neuro-surgery, nasal septum, intestine, stomach, skin, gall bladder, liver, spleen, blood vessels, nerves, alba linea, uterus, bladder, gynecological, fallopian tube, ovary and testicles and dura-matter. Cosmetic surgeries conducted with this technology include breast reduction, breast implants, mastopexy and abdominal plasty. The procedure involves little or no scarring, while restoring the normal function of the body organ or tissue.
The technology was invented and developed at the internationally renowned E.O. Paton Institute of Electric Welding, National Academy of Sciences of Ukraine, Kiev, Ukraine, headed by Professor B.E. Paton. U.S. and Australia patents have been issued, a patent in the European Union has been approved, and additional U.S. and foreign patents are pending.
About CSMG Technologies, Inc.