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Spectral Molecular Imaging Releases Letter to Shareholders Outlining Proprietary Technology for Improved Diagnosis of Cancer an

^{Published on 2010-06-15 06:41:13 - Market Wire}
 

BEVERLY HILLS, Calif.--([ BUSINESS WIRE ])--Spectral Molecular Imaging, a wholly-owned subsidiary of Cascade Technologies, Inc. (OTCBB: CSDT), has released a letter to shareholders from Chairman and founder, Daniel L. Farkas, Ph.D. In the letter, Dr. Farkas introduces the Company's proprietary technology and its plans to develop a line of next-generation medical diagnostic devices in the field of cancer and for other medical needs:

Dear shareholders,

I'm pleased to take this opportunity to introduce you to Spectral Molecular Imaging (SMI), a development stage medical device company we established to commercialize technology that can provide very early screening for and diagnosis of cancer and other major disease. We believe SMI's products may enable doctors to save lives and improve treatment outcomes for tens of thousands of cancer patients every year.

Pursuant to an agreement we entered into as of March 8, 2010, we became a public company through a merger transaction with Cascade Technologies, Inc. In this letter, I'd like to provide some basic background on SMI's vision, technology and the important medical needs and markets we're addressing.

The Science of Spectral Imaging

SMI's technology is based on imaging and analysis of human tissue using light. Light is the richest, most versatile imaging radiation at our disposal, able to create contrast not only by intensity, as with x-rays and most other medical imaging methods, but also by wavelength, polarization, coherence and other properties. The simultaneous acquisition of spectral and topological information from a target is known as spectral imaging. The result is an image acube,a containing a full spectrum at every point (pixel) in the image, whether microscopic or macroscopic. This spectral signature can be used for image classification, thus enabling the objective and reproducible achievement of a critical step in imaging: segmentation, or the differentiation of features of interest a" in our case, in tissues of the body.

SMI's technology was originally developed for satellite reconnaissance, to analyze and understand photographs of earth taken from space. The same principles allow us to image the human body to differentiate medically significant features, down to tissue, cellular and even molecular levels. This spectral imaging can be conducted non-invasively for procedures such as skin cancer screening, or in minimally invasive procedures using endoscopes to examine internal tissues for other diseases or conditions. More importantly, spectral imaging can provide more detailed diagnostic information to doctors than is possible under current medical practices, and can do so far earlier a" factors that can mean the difference between life and death.

Addressing Large Unmet Medical Needs

At present, we're developing medical devices to address several important medical needs and markets, with three products in the pipeline:

• MelaSpect(tm), to address the massive and increasing need for early, reliable, non-invasive screening for and diagnosis of melanoma (the deadliest skin cancer);
• EndoSpect(tm), a spectral/hyperspectral imaging endoscope to investigate tissue status inside the body during gastro-intestinal and pulmonary endoscopy and minimally invasive surgery, to provide early detection of cancer and pre-cancerous conditions; and,
• OxySpect(tm), a device to map tissue oxygenation in a broad range of organs and body locations, both during and after surgery.

Fighting Melanoma

SMI intends to bring MelaSpect(tm) to commercial viability first. According to the Skin Cancer Foundation, cancer of the skin is the most common type of cancer in the US, with more than one million Americans diagnosed every year. The American Cancer Society projects more than 10,000 deaths annually from skin cancer. There are three major types of skin cancer: basal cell, accounting for approximately 75% of skin cancer cases; squamous cell, totaling about 20% of skin cancer cases; and melanoma, which accounts for an estimated 4% of skin cancers, but is responsible for approximately 79% of skin cancer deaths. In 2004, more than $1 billion was spent on non-melanoma skin cancers in the US. This year worldwide spending on melanoma alone is expected to reach $6 billion.

Unfortunately, melanoma is also the fastest growing cancer both in the US and worldwide, and the most common in young adults aged 20-30. The statistics are sobering: since 1980 there has been a 50% increase of melanoma in young women, making melanoma the primary cause of cancer death in women 25-30. Survival rates with melanoma are extremely strongly dependent on stage of diagnosis, and early detection remains the only effective means of successfully fighting the disease.

Currently, doctors rely on visual examination of patients to identify suspicious skin tissues, a process that often leads to unnecessary biopsies and too-late diagnoses. Unfortunately, melanomas can mimic benign lesions that are overwhelmingly more common, and misdiagnosis or delay in the diagnosis of melanoma can occur. In fact, misdiagnosis of melanoma is one of the most common causes for malpractice litigation brought against medical practitioners, (13% of all claims from 1995-2001), and awards tend to be large.

SMI's MelaSpect(tm) device would increase sensitivity and specificity of detection and spot problem areas (early melanoma) reliably and much earlier than current methods. Our objective is for MelaSpect(tm) to become an integral part of the standard of care in melanoma detection.

Addressing other Very Large Medical Markets

Similarly, other medical devices we have in development are intended to provide earlier and more reliable diagnosis for other serious diseases and cancers, such as Barrett's esophagus(a condition caused by chronic acid reflux that can lead to esophageal cancer) and lung cancer. In future communications I intend to explain more about these and other vital medical needs and multibillion-dollar markets that SMI will work to address.

We believe in the uniqueness and efficacy of our technology and feel that the products we have in development will prove capable of saving lives and improving patient health. As an added benefit we also expect that when our products are generally available in commercial use medical costs for diagnosis and treatment can be lowered.

I want to thank you for your attention and support, and I invite our shareholders and all other interested persons to review SMI's technology and to follow our progress in the months to come.

Sincerely,
Daniel L. Farkas, Ph.D.
Founder and Chairman, Spectral Molecular Imaging, Inc.

About Spectral Molecular Imaging

Spectral Molecular Imaging, Inc., a wholly-owned subsidiary of Cascade Technologies, Inc., is a development-stage, medical imaging device company. Application of SMIa™s proprietary spectral-optical imaging technologya"originally developed for satellite reconnaissancea"is expected to advance the diagnoses of cancer and precancerous conditions. SMI is developing non-invasive imaging systems using its patented technology for improved clinical diagnostics, primarily in the field of cancer pathology. SMIa™s devices utilize high-resolution imaging, identification, and analysis of certain molecular, cellular, and tissue features via patented spectral-imaging approaches. We also intend to provide services related to our primary products, including software modules and maintenance services, and to develop optical diagnostic products that operate in conjunction with surgical and/or evaluation procedures in real time. Our technology is expected to enable early detection and more reliable diagnosis of various diseases, including skin cancers such as melanoma, Barretta™s esophagus (a condition caused by chronic acid reflux that can lead to esophageal cancer) and lung cancer. The development of this technology is expected to significantly improve long-term patient outcomes while substantially reducing overall costs for the healthcare system. For more information, please visit [ http://www.spectralmi.com ].

Forward-Looking Statements

The content of this news announcement contains or may contain certain "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to significant risks and uncertainties, including those detailed in filings made by Cascade Technologies, Inc., SMI's parent, with the Securities and Exchange Commission. Forward-looking statements may include, without limitation, statements regarding SMI's plans, objectives, projections, expectations and intentions and other statements identified by words such as "projects", "may", "could", "would", "should", "believes", "expects", "anticipates", "estimates", "intends", "plans" or similar expressions. These statements are based upon the current beliefs and expectations of SMI's management; however, actual results, including, without limitation, actual sales and other financial results, may differ significantly from those set forth in the forward-looking statements. These forward-looking statements involve risks and uncertainties that are subject to change based on various factors, many of which are beyond SMI's control.