Ithaca, N.Y. – Rheonix, Inc. today announced the receipt of a Small Business Innovation Research (SBIR) Phase II grant in the amount of $500,000 from the National Science Foundation (NSF) to continue development of a Rheonix CARD® (Chemistry and Reagent Device) system to detect certain types of water contamination.

NSF awarded the grant based upon the progress made during the NSF-funded Phase I and IB program to develop a rapid biosensor to monitor recreational water for the presence of fecal indicator bacteria (FIB). Testing for FIB is routinely performed at U.S. beaches to ensure that the water is not contaminated with potentially pathogenic bacteria.

Richard Montagna, Ph.D., Senior Vice President for Scientific Affairs of Rheonix and the project’s

Principal Investigator stated that, “In order to ensure the safety of U.S. recreational waters, health

authorities currently must rely upon time-consuming methods to detect the presence of FIB. These

methods may take upwards of two to three days, during which time swimmers can be exposed to

dangerous pathogens.”

Tony Eisenhut, President of Rheonix commented, “The Rheonix system not only achieves accurate

results within a few hours, but also permits the distinction of viable from nonviable organisms.

Because of its capabilities, we believe that the Rheonix CARD® system will permit the U.S. EPA to

fulfill a court order to reduce the time required to evaluate the safety of recreational water to sameday

results. We are also actively seeking strategic partnerships to market this innovative new

technology platform in recreational water quality markets.”

The Company will use the additional funding to complete the development of the fully automated

Rheonix CARD® system for recreational water testing. The same underlying system has applications

in a broad spectrum of markets including human and veterinary in vitro diagnostics,

biopharmaceutical manufacturing, food and beverage manufacturing, food/water safety testing and

homeland security/defense applications.

About the National Science Foundation

The National Science Foundation (NSF) is an independent Federal agency created by the National

Science Foundation Act of 1950. The Act states the purpose of the NSF is “to promote the progress

of science; [and] to advance the national health, prosperity, and welfare by supporting research and

education in all fields of science and engineering.” Any opinions, findings, and conclusions or

recommendations expressed in this release are those of Rheonix and do not necessarily reflect the

views of the National Science Foundation.

About Rheonix, Inc.

Rheonix has created a powerful microfluidic platform for the evolving molecular diagnostics industry.

This system incorporates low cost disposable Rheonix CARD® technology to analyze single or

multiple clinical raw samples. The Rheonix CARD® system provides multiplexed endpoint analysis

and can be rapidly customized for a wide breadth of diagnostic applications. www.rheonix.com