SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 18348 / September 12, 2003

SEC SUES VECTOR MEDICAL TECHNOLOGIES, INC., MICHAEL H. SALIT, JAMES P.
FARNELL, MICHAEL J. FARNELL, DAVID A. ZIMMERMAN AND STANLEY B. WASSER FOR
FRAUD IN CONNECTION WITH THE COMPANY'S UNREGISTERED SECURITIES OFFERING THAT
RAISED APPROXIMATELY $16 MILLION PRIMARILY FROM PHYSICIAN INVESTORS

Securities and Exchange Commission v. Vector Medical Technologies, Inc.,
Michael H. Salit, James P. Farnell, Michael J. Farnell, David A. Zimmerman
and Stanley B. Wasser, Civil Action No. 03-80858-CIV-HURLEY (SD Fla., filed
September 11, 2003).

   The Securities and Exchange Commission (Commission) announced that it
   filed an action for injunctive relief in United States District Court
   for the Southern District of Florida on September 11, 2003, charging
   Vector Medical Technologies, Inc. (Vector), Michael H. Salit (Salit),
   James P. Farnell (J. Farnell), Michael J. Farnell (M. Farnell), David
   A. Zimmerman (Zimmerman) and Stanley B. Wasser (Wasser) with
   securities fraud for their participation in a securities boiler room
   operation that raised just under $16 million from defrauded investors,
   mostly physicians, in an unregistered public distribution of stock.
   The Commission's complaint alleges that the defendants sought out
   physician investors to join Vector's medical advisory board as a ruse
   to solicit them to purchase stock in Vector, a developmental stage
   biomedical company purporting to have a patch capable of delivering
   insulin and other high-density molecular weight drugs through the
   skin.

   Specifically, the complaint alleges, among other things, that Vector
   and Salit violated the anti-fraud provisions of the federal securities
   laws by making false and misleading statements and omissions of
   material fact to prospective investors concerning (i) Vector's
   acquisition of revolutionary, patented, transdermal technology; (ii)
   Vector's impending initial public offering ("IPO"); (iii) Vector's
   purported success in clinical trials; and, (iv) Vector's payment of
   sales commissions from the offering proceeds. The Complaint also
   alleges that Vector and Salit aided and abetted violations of the
   broker-dealer registration provisions committed by J. Farnell, M.
   Farnell, Zimmerman and Wasser, who acted as unregistered
   broker-dealers by soliciting investors to purchase Vector stock.

   The complaint further alleges that defendants J. Farnell, Zimmerman
   and Wasser had direct communications with prospective investors
   wherein they made numerous false and misleading statements and
   omissions concerning (i) Vector's transdermal patch technology; (ii)
   Vector's impending IPO; (iii) Vector's current and future valuation;