Category: Uncategorized
October 16, 2002

News Release: Receives Major Purchase Order

Scantek Medical, Inc. (SKML OTC-BB) has granted exclusive distribution rights to Compat Comercio Exterior Ltda located in Rio De Janeiro-RJ-Brazil to market and sell Scantek's BreastCare(TM) Differential Temperature Sensor (BreastCare(TM)) in Brazil, excluding 4 states in Brazil where the Company is pursuing direct agreements.
Compat Comercio has numerous divisions including the following: Richards do Brasil Produtos Cirurgicos Ltda.- Sao Paulo, Brasil - Precision Medical Supplies Corp., Miami, Florida - Medic Comercial LTDA., Sao Paulo-SP-Brasil. Richards Do Brasil Produtos Cirurgicos Ltda. has been involved in marketing medical products since 1977. Richards do Brasil is the oldest distributor to work with Gyrus ENT (former Smith & Nephew ENT) as well as the exclusive distributor for Boston Medical Products. NSK Inc., Explorent (Germany), ASAP (Germany), Sony Medical, and Toshiba Medical are a few of the lines they distribute. Scantek's president, Mr. Zsigmond L. Sagi stated, 'Our connection with such a well established company that is recognized in the Brazilian medial community is very important for the Company.'

BreastCare(TM) can significantly improve early detection of breast cancer when used as an adjunct to clinical breast examination and mammography. In clinical studies in the United States (i.e., Sloan Kettering Memorial, MD Anderson Cancer Center, Guttman Institute, NY, Georgetown University, and Brotman -UCLA) in Brazil and at the European Institute of Oncology, BreastCare(TM) has been clinically proven capable of recognizing metabolic activity (angiogenesis). At the present time, in developing countries, as well as industrial nations, there is no available screening procedure which identifies increased metabolic activity due to abnormal cell proliferation.

Mr. Sagi further stated, 'We are very pleased that our determination and perseverance has brought a dream into a long awaited reality. Also, we are extremely excited that this agreement will provide significant profits to the Company.'The Compat Comercio agreement calls for the shipment of a minimum of 100,000 units during the first six months of the term of the agreement, 400,000 units during the second six months and 1,000,000 units during the second year and subsequent years. Management believes that the timely fulfillment of the Compat Comercio agreement will result in net profits in excess of $2,000,000 for the first year of the Compat Comercio agreement, subject to Compat Comercio meeting its minimum purchase obligations to the Company. The agreement has a term of five years with a renewal term of an additional five years. Subsequent to the initial two year term of the agreement, the Company has the right to terminate the agreement if the parties cannot agree upon a minimum number of units above 1,000,000. There can be no assurance that Compat Comercio will meet the minimum purchase requirement, or that the Company will recover any damages which may result from such failure.

Pursuant to the Compat Comercio agreement, the first shipment of 10,000 BreastCare(TM) units has been prepaid and deposited into a bank escrow account and will be released when a Brazil government import license is secured which is expected shortly. Subsequent shipments will be paid fifty (50%) at the time of the order and fifty (50%) percent sixty (60) days later.

Scantek Medical, Inc. is a high-tech medical company engaged in developing, manufacturing, selling and licensing of products and devices to assist in the early detection and diagnosis of disease. Shipments to other parts of South America will commence during 2003. Ultimately, the Company intends to focus upon manufacturing, selling, and licensing the BreastCare(TM) Differential Temperature Sensor in other countries, as well as, Brazil. The BreastCare(TM) device is to be used by physicians as an adjunct to clinical breast examination, mammography and other established procedures for the detection of breast disease.

Statements in this press release which are not historical, including management's intentions, hopes, beliefs, expectations, representations, projections, plans or predictions of the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to the risk factors and other information set forth in the Company's filings with the Securities and Exchange Commission. Actual results could differ materially from any forward-looking statements and may vary from management's expectations and cannot be guaranteed.

CONTACT: TEL: 973/401-0434 Scantek Medical, Inc, Cedar Knolls

Mr. Zsigmond L. Sagi

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