About NMP179? Proteins
Matritech has identified a nuclear matrix protein associated with cervical cancer and cervical precancerous conditions (NMP179) and has conducted preclinical studies investigating the utility of using this protein in conjunction with routine and follow-up cervical testing. NMP179 was developed to reduce the time for and increase the accuracy of visually identifying cervical cells which need further visual inspection by a pathologist.

In 2002 the Company licensed exclusively the world-wide use of NMP179 technology for automated, non-slide-based laboratory instruments to Sysmex, Inc., a leading manufacturer of automated laboratory instruments based in Kobe, Japan. By combining our NMP179 technology with Sysmex's expertise in flow cytometry, image analysis and laboratory automation, we expect Sysmex to develop new systems which will automate the process of screening Pap smears. As a part of this transaction, Sysmex purchased shares of Matritech?s common stock at a premium, agreed to pay milestone payments based on reaching certain research and product development goals, committed to make minimum quarterly payments to support research, contracted to purchase all NMP179 reagents from the Company and will pay a royalty on all reagent sales related to their cervical smear screening system. Sysmex began large-scale pre-clinical testing of their system incorporating our NMP179 technology in May of 2004.

About Cervical Cancer
The American Cancer Society estimated that in 2004, about 10,520 cases of invasive cervical cancer will be diagnosed in the United States. Some researchers estimate that noninvasive cervical cancer (carcinoma in situ) is about four times more common than invasive cervical cancer. About 3,900 women will die from cervical cancer annually in the United States. This cancer tends to occur in midlife. Half of women diagnosed with cervical cancer are between the ages of 35 and 55. It rarely occurs in women younger than 20. Although cervical cancer does affect young women, many older women do not realize that the risk of developing cervical cancer is still present as they age. Slightly over 20% of women with cervical cancer are diagnosed when they are over 65.