INTELLECTUAL PROPERTY

Opticon has strong barriers to possible future competitive products that might copy the Opticon design and function. These barriers are a result of its strong intellectual property portfolio, freedom to operate and additional practical factors such as extensive design, testing and regulatory lead times.

The Company has been granted 7 United States and 22 international patents and has additional patents pending in the US and abroad. All patents issued in the United States have European and international counterparts, either issued or pending in major global markets.

Issued patent claims apply to commercial product features including:

1. The proprietary teardrop shape of the retention/sealing balloon of the catheter,
2. The method for adjusting length and anchoring the device in place, and
3. The design and function of the urine drainage valve.

Management and the Company's intellectual property law counsel believe that the Company's patents are valid and enforceable.