Company Presentation

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• Company Presentation
• www.spectrascience.com

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Forward looking statements

• This presentation may contain predictions,
  estimates and other forward-looking statements.
  Our use of the words estimate, project and
  similar expressions is intended to identify these
  statements. These statements represent our
  current judgment on what the future holds. While
  we believe them to be reasonable, these
  statements are subject to risks and uncertainties
  that could cause actual results to differ
  materially as a result of certain factors,
  including those set forth in the Companys 10KSB
  and 10QSB filings with the Securities and
  Exchange Commission.

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Proceedings Today

• Formal resolutions
• CEOs address
• Q A

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Transforming the business

• Moving from RD to commercialization
• Recent funding provides capital to deepen sales
  and marketing, expand operations and increase
  inventory
• Taking proactive stance toward the public markets

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Highlights

• LUMA acquisition
• EU certification
• Established initial distribution in EU
• Initial WavSTAT sale in EU
• Closed financing of 5.5M
• Upgraded WavSTAT with new technology
• Re-started Barretts study
• Expanded sales force
• Sought further FDA approvals
• Strengthened Board

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Creating a Leading Cancer Detection Company
Innovation

• 85 of all cancers begin in the epithelial layer
• FDA approved for detecting colon/cervical cancer
  
• approval for esophageal cancer expected in 2008
  (PMA supplement)
• Sales in EU before FDA approval.
• FDA approved for detecting pre-cervical cancer
• Instantaneous detection (decreases procedure
  time)
• Treatment possible at point-of-care (decreases
  number of visits)

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Gastrointestinal/Tissue Penetration
TISSUE
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The Solution
WavSTAT Optical Biopsy Device and Forceps
Therapeutic forceps deployed through scope
center channel -biopsies AND removes tissue in
same procedure
Diagnostic WavSTAT optical biopsy console
generates and sends Laser light through optical
fiber, reads reflected light and makes cancer
determination.
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What is an Optical Biopsy?

• Pre-cancer cells reflect light differently vs.
  normal cells. The difference is what we detect.
• WavSTAT display gives instant absolute answer
• GREEN normal
• RED suspect
• Determine margin (edge) of disease
• Can remove tissue immediately with forceps

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WavSTAT Advantages
Fast, accurate early detection and ability to
treat/biopsy in situ

• Reduced procedure time
• Reduced cost of care
• Additional MD revenue
• Improved patient outcomes
• Patient goes home with peace of mind - no waiting
  for pathology
• If positive sent directly to surveillance or
  oncologist
• Esophageal - low pain versus present method
• Investigational

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Esophageal Cancer

• 2 million screenings per year
• Growing 5X faster than other cancers
• Particularly high incidence in Asia
• Very difficult to visualize and diagnose
• Over 90 mortality rate

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Esophageal Cancer
Stages of Disease Progression
Weekly occurrence in 60M Americans daily in 20M
GERD (Heart-burn)
10 of patients with chronic heartburn
Barretts esophagus
Low-grade dysplasia
20 of Barretts patients
3 of LGD patients progress to HGD
High-grade dysplasia
WavSTAT begins detecting here
17 of HGD pts
Esophageal cancer
Gastroesophageal reflux disease
Investigational
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Esophageal Cancer
Limitations of current diagnostic procedure

• Random physical biopsy in four quadrants
• Up 2cmdo it again Up 2cmdo it again. Could be
  as many as 16-20 vs. as low as none optically
• Hope specialist biopsies correct spot and hope
  pathologist accurately interprets what might be
  cancerous

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Colon Cancer

• Second most common cancer diagnosed in US
• 149,000 diagnosed and 55,000 deaths annually
• All persons over 50 at risk
• Expected to increase 20 over next 10 years
• 92 of patients cured if cancer detected early

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Cervical cancer

• Second most common malignancy in women world-wide
• A National study showed 200,000 women are sent
  home by their physicians each year with
  pre-cancer and dont know it!
• Abnormal Pap test requires colposcopy
• Colposcopy is subjective depends on training
• LUMA is objective, accurate, a permanent record
  and directs the biopsy target

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LUMA Cervical Imaging System

• LUMA

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Colposcopist/LUMA view cervix
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LUMA Control Panel
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Obstetrics Gynecology Ad
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Obstetrics Gynecology Ad
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Sales/Marketing Strategy

• Direct sales force to sell to physicians and
  group practices
• Start with thought-leaders and expand from there
• Work with Patient Advocacy Groups
• Begin integration with Managed Care Networks

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Intellectual Property

• Exclusive rights to sixty issued and pending U.S.
  and international patents
• All patents cover various aspects of the WavSTAT
  LUMA Systems, methods for tissue diagnosis and
  our disposables
• New non-endoscopic patent filed
• Exclusive licensee of an additional patent from
  Massachusetts General Hospital

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Board of Directors

• Jim Hitchin
• Mark McWilliams
• Rand Mulford
• John Pappajohn
• Stan Pappelbaum
• Tommy Thompson
• Chet Sievert
• (Steve Watson)

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Investment Highlights

• Robust Recurring Revenue Model
• Company intends to sell or charge on a per use
  basis for diagnostic testing
• Disposable/reusable optical probe/forceps offer a
  second major revenue stream
• Company will have compelling cost-effectiveness
  data to push for additional CPT codes
• Strong Management/Board Team
• Extensive experience in Operations, Research
  Development, Sales Marketing, Engineering,
  Regulatory and Business Development
• Experience establishing O.E.M. arrangements and
  building co-marketing partnerships
• Extensive experience in medical device industry

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Investment Highlights

• Large Market Opportunity
• Esophagus gt2M annual procedures in US 850M
  US/EU diagnostic potential 250-650M for
  disposable/reusable for esophagus alone
  multi-billion markets for other areas of cancer
• Asian market much higher potential
• Opportunity for rapid growth given no competition
  in definitive in situ diagnostics
• Clinically-Proven Non-Invasive Technology
  Platform
• Successful and statistically significant (96)
  studies in hundreds of patients for colon cancer
• Significant successful study for esophagus
  completed (95)
• Published reports show gt26 more pre-cancers
  found in cervix
• Extensive new uses possible lung, oral,
  prostate, urinary/bladder, etc.
• Strong Intellectual Property Position
• 60 patents issued or pending- cover BOTH WavSTAT
  and LUMA Systems and Probe/Forceps
• Patent license with Mass General

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Going Forward

• We have laid the foundation for transition to a
  full operating company
• Finish Barretts study file with FDA
• Begin selling Barretts in the EU
• Selling LUMA partnering program
• Complete colon study in managed care
• Begin and complete lung study

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• www.spectrascience.com