VANCOUVER - The Canadian Medical Discoveries Fund Inc. has awarded its 1999 Friesen-Rygiel Prize to Xillix Technologies Corp. and BC Cancer Agency (BCCA) for their united efforts in developing a device to detect early lung cancer. The award ceremony took place at the Connections '99 Conference, sponsored by MDS Capital Corporation, in Toronto on May 6. The prize went to Xillix, the BCCA scientists who developed the technology and BCCA's Technology Development Office.

The company's lead product, the Xillix LIFE-Lung Fluorescence Endoscopy System*, is the brainchild of a research team led by the following: Dr. Stephen Lam, M.D., head of Pulmonology at BCCA; Dr. Branko Palcic, Ph.D., director of BCCA's Technology Development Office and a senior scientist in Cancer Imaging; Dr. Calum MacAulay, Ph.D., head of Cancer Imaging at BCCA; and Bruno Jaggi, P.Eng., senior vice president and chief engineer at Xillix.

"We are very pleased to be honoured for this technology and express our thanks to the selection committee for this prize," said Mr. Bruno Jaggi. "Our work in the area of tissue autofluorescence began in 1989 in the labs of the BCCA. Today we are successfully marketing this technology for the earlier detection of cancer throughout the world."

Established in 1997, the Friesen-Rygiel Prize honours two Canadian pioneers in health research and development: Dr. Henry Friesen, president of the Medical Research Council of Canada, and Mr. Edward Rygiel, president of MDS Capital Corporation. Both men promote partnerships between the private and public sectors, for creating economic value from discoveries made at Canadian universities, and for creating economically viable companies that benefit the community.

The prize is awarded annually to partners who transfer the most outstanding human health discovery from a Canadian academic institution to the creation of a commercial enterprise. The award consists of a $10,000-cash prize and a medal to the group of scientists and a plaque of honour to Xillix and another to the BC Cancer Agency.

"I am proud of our partnership with Xillix and our progress against lung cancer," said Don Carlow, M.D., BC Cancer Agency's president and chief executive officer. "This award recognizes the symbiotic exchange between our researchers and private industry. Companies need us for our expertise and we need them to help us develop our inventions for market, in order to transfer discoveries to the people who need them."

Xillix Technologies Corp. is a leader in the development and commercialization of proprietary medical imaging technology, which helps physicians diagnose early-stage cancer. When tissue containing abnormal cells is exposed to light from Xillix's fluorescence imaging devices, clinicians are able to detect precancerous and cancerous cells.

The company's lead product, Xillix LIFE-Lung Fluorescence Endoscopy System*, has been approved for sale in the United States, Canada, Europe and Japan. Worldwide marketing has been granted to Olympus Optical Co. Ltd., of Tokyo, the international endoscopy market leader. Xillix is listed on the Toronto Stock Exchange under the trading symbol "XLX."

The BC Cancer Agency provides a comprehensive cancer control program for the people of British Columbia by working with community partners to deliver a range of oncology services, including prevention, early detection, diagnosis and treatment, research, education, supportive care, rehabilitation and palliative care. The BC Cancer Research Centre conducts research into the causes and cures for cancer. The BC Cancer Foundation has a mandate to raise funds to support the work of the Agency and Research Centre, for a world without fear of cancer.

For more information, please call Annabel Bruce:
Ph: 604.877.6098 ext. 2076
Fax: 604.877.6146
Public Relations.