SurgiCount Medical, Inc., has come to be recognized as a leader in the race to eradicate the problem of retained surgical sponges, which occur once in every 8,000 surgeries. SurgiCount is a wholly owned subsidiary of Patient Safety Technologies, Inc., and is based in Irvine, Calif. SurgiCount’s Safety-Sponge® System consists of a line of uniquely identified surgical sponges and towels and a turnkey hardware and software offering integrated to form a comprehensive accounting and documentation system. To date more than 8 million medical procedures have been completed utilizing the Safety-Sponge® system, resulting in the successful accounting for more than 160 million sponges, and eliminating an estimated 1,000 retained surgical item events. We estimate that over 190 million of our Safety-Sponges have been successfully used in more than 9 million surgical procedures. We sell our Safety-Sponge System to hospitals through our direct sales force and by leveraging the sales and marketing capabilities of our distribution partners.