Scivanta Medical Corporation

New Products and Acquisition Criteria

In addition to developing the SCMS, the Company’s strategy for business development will focus on the acquisition, through licensing or purchasing, of technologies or products that are sold or are capable of being sold in a specialty or niche market. Technologies or products of interest include, but are not limited to, medical devices, pharmaceuticals and other proprietary technologies or patented products. Annual sales, if any, of the technologies and products that the Company will review will be generally less than $5 million. The Company will prefer products or technologies that have significantly progressed through the development stage and where very little, if any, research on the product or technology remains.

Following is a listing of criteria being utilized by the Company in identifying and reviewing potential technology or product acquisitions:

Whether the technology or product offers advantages over existing procedures and treatments
Whether the technology or product requires additional research.
Whether the technology or product is a specialty or niche-market product which is, or is capable of being, distributed through specialty distributors.
Whether the technology or product is unique or patented.
Whether the technology or product has, or is capable of achieving, an attractive gross margin, usually in excess of 35%.
Whether the prospective seller is receptive to receiving equity as part of the purchase price.
Whether the market for the technology or product is expanding, but not to the extent the product will become a commodity.
Whether the Company can access marketing channels to sell and distribute the technology or product.
Whether the technology or product contains a feature that can generate recurring revenue from each customer.

Business Development : Development Plan