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Date:3/15/2010

ng a six-month period for CytoCare leases and service fees in connection with its customer installations in America and China, hence our decision to terminate Devon's contracts for cause. We have now put this unfortunate situation behind the company, without any lawsuits[2] ever filed against Health Robotics by anyone anywhere in the world, and starting anew with fiscally responsible and customer-focused sales and service channels, such as McKesson, SinoPharm, and HRCI. We will continue to assist as much as legally possible the innocent victims of Devon's actions and omissions: hospitals who are now unfortunately embarked in a trail of lawsuits and legal threats to them by Devon's seeking payments from hospitals for services which Devon didn't perform and for which Devon did not pay to Health Robotics, as the bad debt write-offs on our financial statements (attached hereto) denote" concluded Mr. Rainer.

Additionally, Health Robotics reached many other important non-financial milestones and success highlights during FY2009: we reached the 50-hospital customer mark with CytoCare; we installed our second robot for hospital pharmacies [i.v.STATION]; we successfully launched a new product [i.v. SOFT] to serve as a back-up to our CytoCare, I,v.STATION and TPNstation robots, and as the company's entry point into manual sterile compounding; we started the development of TPNstation; we launched the I.V. Room of the Future initiative, a joint-development project with selected hospitals to set up 10 centers of I.V. Room excellence around the world (4 in the '/>"/>

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