FST.L Regulatory News (FST)

11 July 2011

Toumaz Limited

JV established with Patrick Soon-Shiong's California Capital Equity to distribute Sensium digital plaster worldwide

Toumaz Limited (AIM: TMZ, 'Toumaz', or 'the Group'), a pioneer in low cost, ultra low power wireless communications and broadcast technology, has established a new Joint Venture ('JV') with Dr Patrick Soon-Shiong's company, California Capital Equity LLC ('CCE'), to continue development, commercialisation and distribution of the Sensium disposable digital plaster ('Sensium Plaster') in North America and worldwide.

Toumaz's previous Strategic Partner in North America has agreed to license its IP relating to the Sensium Plaster to Toumaz, in exchange for a royalty interest in the Sensium Plaster. Toumaz will license all relevant IP, owned by itself and by the Strategic Partner, to the new JV, so providing the necessary know-how and clinical documentation to launch the product as soon as development work is completed and regulatory approval is received.

The Sensium disposable digital plaster has just received 510(k) approval from the US Food and Drug Administration ('FDA') in the US - see separate announcement.

Highlights:

·; Under the proposed business plan CCE will fund the JV over the next two years with up to $25m

·; CCE will own 80% of the equity and Toumaz 20%

·; Toumaz will licence its original technology and sublicense the IP from the Strategic Partner to the JV for a 10 percent royalty on sales of any products using that IP

·; The JV, called Toumaz US, will be initially headquartered in San Diego, California

·; The Strategic Partner, which has been managing the development of the Sensium Plaster, including the trials and regulatory clearance, will transfer all of the product design, FDA submission documentation, relevant clinical trials data and license it relevant IP to Toumaz

·; Toumaz will receive revenues from the JV for the development of the Sensium Plaster through to commercial launch

·; Toumaz and the Strategic Partner have been working together to transfer knowledge, on-going development work and transition relationships with key suppliers and customers

·; Toumaz retains the rights for the use of the Sensium technology for all other non-disposable applications 

·; Dr Patrick Soon-Shiong will be Chairman and Prof Chris Toumazou vice Chairman of the JV

The Group will publish a trading update for the six months to 30 June 2011 in late July.

Professor Chris Toumazou, Toumaz Chief Executive, commented:

"This JV is a great opportunity for us to work closely with Dr Patrick Soon-Shiong and take advantage of his considerable expertise in the development and distribution of medical devices and technology in the US. The extent of CCE's involvement in this venture illustrates the potential of the wireless healthcare market and our compelling proposition.

"We are pleased to be taking this project forward from the solid technical and commercial base that has been established. We are confident, given the disruptive nature of our technology, that launching Toumaz US as a specialist vehicle is the most effective way to bring the Sensium Plaster to the global market."

Dr. Patrick Soon-Shiong, Chief Executive of CCE, said,

"Without a doubt, wireless is the future of healthcare. Wireless technology is the key to bringing quality healthcare to everybody, wherever they may be, in real time. Toumaz's ultra-low power technology is going to be a vital element in this, and our joint venture opens up exciting prospects."

Enquiries:

About Toumaz (www.toumaz.com)

Toumaz is pioneering low cost, ultra-low power wireless technologies for a wide range of markets including medical monitoring and internet-connected consumer devices.

Targeting the Healthcare market, Toumaz's licensable smart sensor interface and transceiver platform, Sensium, is a leader in real-time wireless monitoring of the body's vital signs. Sensium has the potential to transform medical monitoring and reduce the cost of healthcare by wirelessly connecting individuals to healthcare providers - simply, affordably and unobtrusively. For healthcare professionals, this creates new opportunities for pro-active monitoring and improved quality of care. For patients, it delivers new opportunities for lifestyle-compatible personalised healthcare.

Toumaz also uses its ultra low power expertise to design devices for wireless connectivity and internet-connected consumer products. Toumaz currently supplies FM/DAB radio chips and complete modules to leaders in the digital radio market, such as PURE. 

Toumaz is an AIM listed company (AIM: TMZ) with development centres in Oxford, UK and Taipei City, Taiwan.