Share Options and Payments

RNS Number:0098C
AOI Medical, Inc.
14 August 2007

14 August 2007

                               AOI Medical, Inc.
                        ("AOI Medical" or "the Company")

                Issue of share options and payments to Licensor

AOI Medical, the medical device company focussing on the development and
commercialisation of innovative orthopaedic medical devices for the spine and
trauma markets, today announces that it has paid $36,333 in cash and issued
stock options of 6,306 common shares to one of AOI Medical's intellectual
property licensors ("Licensor") for AOI Medical's successful achievement of two
milestones pursuant to a license agreement between AOI Medical and the Licensor
executed on 3 January 2006.

Under the licence agreement, AOI Medical has been granted an exclusive worldwide
right to exploit certain patents, patent applications and know-how of the
Licensor within the field of vertebral body compression fracture technology
subject to AOI Medical making certain license payments upon the achievement of
specific milestones.

Enquiries:

AOI Medical, Inc.                                                [phone]
William Christy, CEO

Numis Securities                                             [phone]
David Poutney / Bruce Garrow

Financial Dynamics                                           [phone]
Ben Atwell / Ben Brewerton


Background to AOI Medical

AOI Medical is a medical device company focussing on the development and
commercialisation of innovative orthopaedic medical devices for the spine and
trauma markets.  It is progressing the development of three separate technology
platforms: BAMF Spine, BAMF Trauma and Cervical Plate.

The Products

BAMF Spine (Balloon Assisted Management of Spine Fractures): a set of tools
intended to be used to address compression fractures of the spine caused by
osteoporosis or trauma.  BAMF Spine will comprise two main instruments: a
cutting device that creates a cavity in cancellous bone, and a balloon-like
device which is used to restore the height of the fractured vertebra and to
deliver and contain the cement in the cavity.  Current techniques used to treat
progressive vertebral compression fractures include vertebroplasty and
kyphoplasty.  The Directors believe that BAMF Spine represents an enhancement
over the current techniques as they expect the process: to be accomplished
through one pedicle access port (incision) rather than two; to require fewer
steps and less time; to be less susceptible to cement leakage; and to return the
fractured vertebra to true anatomic position.

BAMF Trauma (Balloon Assisted Management of Trauma Fractures): is a removable,
inflatable nail for the stabilisation of fractures of the long bones of the arms
and legs.  AOI's BAMF Trauma differs from the nails currently on the market in
that it is a combination of a stainless steel nail inside a balloon.  The device
is inserted into the intramedullar canal of the fractured bone with the balloon
deflated.  The balloon is then inflated to fill the remaining space.  The
Directors believe that BAMF Trauma will have a technological advantage over
existing products in the market because it will potentially: require a smaller
gauge at the point of insertion; provide a firm structure, adapted to the bone
cavity while in place; and be easily removed by deflating the balloon, thus
narrowing the diameter of the device again.  The Directors believe that this
last feature should make the device particularly interesting for treating
children, in whom growth in the affected limb is impaired if a stabilisation
device is left in place.

Cervical Plate (Motion Preserving Cervical Dynamic Stabilisation Plate): an
anterior, semi-constrained artificial ligament designed to provide some
translational and rotational motion when used subsequent to a cervical spine
disc replacement surgery.  Current practice for severe intractable disc disease
is spinal fusion.  Spinal fusion is a medical procedure by which two or more
vertebrae are linked together.  Fusion may be carried out to treat a number of
spinal conditions; however, it causes stiffness of the spine in patients and
increases stress to the adjacent levels of the spine which may lead to
additional morbidity. The failure rate after lumbar fusion has been reported to
be as high as 37 per cent.  Anterior plates provide stability following
decompression and fusion of the cervical spine.  The Directors believe that the
following technical attributes of the Cervical Plate provide it with a
technological advantage over existing spinal fusion techniques: it offers a
motion preservation fusion approach that aims to promote a return to normal
range of motion when used in combination with alternatives to fusion;  the
sculpted design and thickened rails of the Cervical Plate should allow the
support needed to allow multi-directional movement while ensuring disc
compression, reducing pressures across adjacent parts of the spine; and  it is a
smaller device than competitive devices and should therefore be less disruptive.




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