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IRIS INTRODUCES THE IRIS/ARKRAY AUTOMATED URINE CHEMISTRY ANALYZER AT INDUSTRY CONFERENCE

CHATSWORTH, CA, July 2, 2001 -- International Remote Imaging Systems, Inc., also known as IRIS (AMEX: IRI), the world's leading manufacturer of urinalysis workstations, officially introduced, pending U.S. Food and Drug Administration 510(k) clearance, the IRIS/ARKRAY Aution Max™ AX-4280 automated urine chemistry analyzer at last week's Clinical Laboratory Management Association (CLMA) meeting held in St. Louis, Mo.

The AX-4280 is designed around a universal sample transfer rack system that provides automatic, unattended batch processing of up to 210 samples at a throughput of 225 samples per hour. The analytical module performs 12 tests, urine chemistry parameters, including specific gravity by refractometer, color and clarity.

The AX-4280 was demonstrated in the popular IRIS "Island of UA Automation" exhibit booth, highlighting IRIS's unique 939UDx™ Urine Pathology System, the world's only fully automated chemical and microscopic urinalysis instrument using CCD imaging and neural network technology. IRIS received FDA clearance in 2000 for auto reporting of results using automatic analyte pattern recognition on the 939UDx system.

"We were extremely pleased with the reception of the ARKRAY Aution Max™ AX-4280," stated Kelly Bigliardi, President of IRIS' Chatsworth Operations. "This product clearly offers an alternative modular design to maximize laboratory productivity. With 26% of the nearly 2,620 attendees visiting our booth, we were constantly busy with multiple product demonstrations."

IRIS announced in June that it has entered into an exclusive U.S. distribution relationship with ARKRAY, Inc., based in Kyoto, Japan. ARKRAY, in business since 1960, entered the urine strip and analyzer business in 1996 and sells these products in more than 80 countries. IRIS' exclusive distribution of the ARKRAY Model AX-4280 Automated Urine Strip Analyzer and related Urine Test Strip Line is the Japanese company's entry into the U.S. market..

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.

Its 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.