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Mahwah, New Jersey, November 19, 2001. DOBI Medical Systems, LLC, announced today that the U.S. Food and Drug Administration (FDA) has accepted the third module of its Pre-Market Approval (PMA) application for its Dynamic Optical Breast Imaging System, called ComfortScan.  This module, which was submitted in August, is part of the Company's five-module submission plan previously approved by the FDA.  DOBI Medical Systems is seeking FDA approval for its non-invasive imaging system to be used as an adjunct to mammography to differentiate malignant from benign tumors by detecting angiogenesis in the breast.

DOBI Medical Systems is utilizing the FDA's modular submission approach,which divides the traditional PMA application into modules.  This system allows progressive review and acceptance of each modular portion of the total data required, thus facilitating the overall approval process. The FDA has previously accepted the first and second of the five modules required for the Company's PMA.

Module 3 contains detailed information on Predicted Reliability and Durability, Hazards Analysis, Firmware and Software.  In announcing the acceptance of Module 3 by the FDA, Phillip C. Thomas, President and Chief Executive Officer of DOBI Medical Systems said, "We are pleased that the FDA approval process has moved along expeditiously and continue to be optimistic regarding the progress we are making on our angiogenesis based breast imaging system.

John D. Gardner, Vice President, Technology added, Module 3 provided our detailed hazards analysis which demonstrated that DOBI Medical Systems has considered and mitigated the impact of potential failures caused by human factors, software, mechanical and electrical systems.

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About DOBI Medical Systems
DOBI Medical Systems, headquartered in Mahwah, New Jersey, is a privately held biomedical device company with proprietary optical imaging technology designed to improve a physician's ability to correctly diagnose cancer. The Company's first product, the Dynamic Optical Breast Imaging (DOBI) System, called ComfortScan™, is initially intended to be an adjunct to mammography with the objective of providing a high degree of specificity in detecting benign lesions. Currently, the product is designated an investigational device and may be used only for research purposes in the U.S., pending final FDA approval.

Except for historical information contained herein, the matters discussed in this news release may contain forward-looking statements that involve risks and uncertainties. The forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are not guarantees of future performance due to factors that could cause actual results to differ materially, including but not limited to, results of future clinical trials, technical risks associated with new technology development, government regulatory approval, market acceptance of our product, competition and technological change.

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For further information:
Please contact: Phillip C. Thomas, Chief Executive Officer

DOBI Medical International
1200 MacArthur Blvd.
Mahwah, New Jersey 07430
Voice: (201) 760 6464
Fax: (201) 760 8860


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