The order was placed by Science International Corp., a leading healthcare products vendor with offices in Hong Kong and Guangzhou, which has entered into a distribution agreement with IRIS to distribute StatSpin's CenSlide^® Urinalysis System in China. The CenSlide system, designed for use in small laboratories, was approved by the Health Ministry of China earlier this year for use by all laboratories in the country. The system consists of a centrifuge, specimen tubes and tube holders used for manual microscopic examination of urine.

"We were extremely pleased with the reception of our CenSlide product in China and our relationship with Science International," stated Robert Mello, Corporate Vice President of IRIS and General Manager of StatSpin, Inc. "This product offers unique advantages over conventional and other semi-automated methods and is well suited to address the needs of more than 10,000 small-to medium-size laboratories in China.

Dr. John A. O'Malley, IRIS' Chairman, President and Chief Executive Officer, noted that the Company has been focusing its sales efforts on expanding its markets overseas and that the initial order from Science International held out significant potential for long-term growth opportunities in China. "Through our distribution agreement with Science International, we have entered a large developing market in China that has the potential for generating recurring revenue through the continuing sale of consumable products such as our proprietary CenSlide specimen tubes." StatSpin also has been making inroads into European markets in recent months.

IRIS designs, develops and markets patented and proprietary in vitro imaging systems for automating microscopic urinalysis procedures performed in hospitals and clinical laboratories using patented and proprietary technology that combines visual microscopy, digital image processing and automated image interpretation for analyzing specimens.

IRIS is a leader in automated urinalysis technology with more than 450 of its workstations installed in major medical institutions throughout the world. IRIS manufactures the only clinical analyzers using real-time video flow imaging, displaying microscopic images on a video screen; the systems are operated by touch screen interfaces pioneered by the Company for use in urinalysis. IRIS imaging systems use patented and proprietary automated intelligent microscopy (AIM) technology for automating microscopic procedures. IRIS enables clinical laboratory technologists to rapidly and efficiently analyze and process specimens automatically, significantly reducing the costly and time-consuming manual steps required for microscopic analysis.

StatSpin^® subsidiary, acquired in 1996, excels as a maker of innovative centrifuges and blood analysis products. Thirty-five thousand of its micro centrifuge systems have been sold to date. More than 600 major medical institutions worldwide, along with thousands of smaller hospitals, commercial laboratories, clinics, doctors' offices, veterinary labs and research institutions use StatSpin's products. StatSpin manufactures the world's fastest blood separator (30 seconds). Its bench top centrifuges are dedicated to applications for manual specimen preparation for coagulation, cytology, hematology and urinalysis. StatSpin has been providing centrifuges to the veterinary market through a company which provides sample and analysis systems and recently shipped the 10,000th centrifuge to this market.

Its ADIR subsidiary, Advanced Digital Imaging Research, LLC, established in 2000, is a research and development organization based in the Houston, Texas area. ADIR assists in the advancement of IRIS' proprietary imaging technology while conducting government-sponsored research and development in medical imaging and software, and contract research for corporate clients.

This news release contains forward-looking statements made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees of future performance and are inherently subject to uncertainties and other factors which could cause actual results to differ materially from the forward-looking statement. Such statements are based upon, among other things, assumptions made by, and information currently available to, management, including management's own knowledge and assessment of the Company's industry and competition. IRIS refers interested persons to its most recent Annual Report on Form 10-K and its other SEC filings for a description of additional uncertainties and factors which may affect forward-looking statements. The Company assumes no duty to update its forward-looking statements.