Public Release:  Surgical Theater, LLC sells first Surgical Rehearsal Platform to UH Case Medical Center

Company names CFO, anticipates additional sales

University Hospitals Case Medical Center

Surgical Theater, LLC, creator of the Selman Surgical Rehearsal Platform™ (SRP), has made the first sale of its groundbreaking technology to University Hospitals (UH) Case Medical Center in Cleveland, one of the most respected research/teaching hospitals in America. Physicians at the medical center have been instrumental in the development of Surgical Theater, so it is fitting that the institution becomes the first to own the unique, 3D imaging rehearsal platform.

Using standard scanned images from any patient, the SRP generates 3D patient specific and accurate models of interactions between life-like tissue and surgical instruments. The tissue responds "realistically" to actions taken by the surgeon, thus allowing accurate pre-surgery planning and rehearsal. The unique software utilizes flight simulator technology to permit remote connection of multiple SRPs; participants anywhere in the world can simultaneously work together and practice the same case with real-time feedback and collaborate on the planning of a specific surgery case.

Dr. Warren Selman, Chairman, Department of Neurological Surgery at UH Case Medical Center and Case Western Reserve University School of Medicine in Cleveland, is a co-originator of the Platform's development. Not long ago, a random conversation at a coffee shop between Dr. Selman and the now-CEO of Surgical Theater was the beginning of the SRP's development.

"We're thrilled to have our first sale be to the institution that has been our partner in developing the SRP. The innovative spirit and trailblazing research in this academic medical center have inspired us from the inception of Surgical Theater," said Moty Avisar, President and CEO, Surgical Theater.

The Neurological Surgery Department at UH Case Medical Center has been using the SRP for over two years, and provided clinical insight to the company during its development. Now, with the purchase of the Platform, it will be used for clinical studies to document the value of pre-surgical rehearsal, and for resident and fellow education. Following US Food and Drug Administration (FDA) approval, anticipated in the first quarter of next year, the Platform will be extended to routine patient care.

"Having been involved with the creation of this new technology, I've seen first-hand the potential for it to radically change neurosurgical training and benefit patient care. I'm thrilled that with the purchase by UH our physicians and neurosurgery residents will benefit first from the innovation," said Dr. Selman, who is also Neurosurgeon-in-Chief at University Hospitals and the Harvey Huntington Brown Jr., Professor at Case Western Reserve University School of Medicine.

Surgical Theater launched the Platform at the Congress of Neurological Surgeons Annual Meeting in early October after receiving their first broad patent approval and submitting their application to the FDA.

"To have our first sale so quickly after launch, and with the forecast of more than five additional sales in coming months, is gratifying after so many months of hard work," said Avisar. "We're excited first and foremost at the potential for improved patient outcomes, and at the same time anticipate this sale is the beginning of great things for our company."

Peter R. Brumbergs Named CFO

Along with the initial sale and the patent approval, interest in the company has emerged from a number of investors. To help manage these investment opportunities as well as company finances, Surgical Theater recently named Peter R. Brumbergs as its first Chief Financial Officer. Brumbergs is a savvy business leader with more than 35 years of experience at Fortune 500, middle-market and entrepreneurial companies.

Most recently Brumbergs was CFO of U.S. Endoscopy, a medical device manufacturer with world-wide distribution, and was a member of the executive team that led and closed the sale of U.S. Endoscopy to Steris Corporation. He was also instrumental in developing and implementing growth initiatives that resulted in sales quadrupling and operating income increasing by over 40 times.

"We are pleased to welcome Peter to our growing team of business and technology experts," Avisar said. "Peter's business savvy and national contacts in the medical equipment industry will be extremely important as we continue to grow."

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About Surgical Theater, LLC

Surgical Theater, LLC is a privately held, Cleveland, Ohio-based startup that produces virtual realistic and interactive scenes where surgeons are able to plan, rehearse and tele-mentor their specific missions. The Company provides the opportunity for novice and experienced surgeons to "pre-live the future" by rehearsing their procedure prior to the actual procedure, similar to what pilots do prior to flying complex missions. Such purposeful practice or warm-up has been shown to benefit both novice and experienced surgeons; it may provide an important new tool in the surgeon's armamentarium to improve patient safety and outcomes. For more information visit www.surgicaltheater.net.

About University Hospitals

University Hospitals serves the needs of patients through an integrated network of hospitals, outpatient centers and primary care physicians. At the core of our health system is University Hospitals Case Medical Center. The primary affiliate of Case Western Reserve University School of Medicine, University Hospitals Case Medical Center is home to some of the most prestigious clinical and research centers of excellence in the nation and the world, including cancer, pediatrics, women's health, orthopedics and spine, radiology and radiation oncology, neurosurgery and neuroscience, cardiology and cardiovascular surgery, organ transplantation and human genetics. Its main campus includes the internationally celebrated UH Rainbow Babies & Children's Hospital, ranked among the top children's hospitals in the nation; UH MacDonald Women's Hospital, Ohio's only hospital for women; and UH Seidman Cancer Center, part of the NCI-designated Case Comprehensive Cancer Center at Case Western Reserve University. University Hospitals Case Medical Center is the 2012 recipient of the American Hospital Association - McKesson Quest for Quality Prize for its leadership and innovation in quality improvement and safety. For more information, go to www.uhhospitals.org.

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