ACMI DEVELOPS WORLD'S SMALLEST VIDEO COLOR SENSOR & WORLD'S SMALLEST CAMERA

Southborough, Massachusetts - May 24, 2005 - ACMI R&D Laboratories today announced that its global R&D group has developed the world's smallest digital camera and video color sensor. ACMI plans to incorporate this ground breaking sensor technology into its line of advanced endoscopic medical devices.

ACMI"s initial development was a 1mm color CMOS (complimentary metal-oxide silicon) digital output video sensor. "This ACMI sensor is the smallest known video sensor to have ever been developed and represents over two years of effort utilizing the best engineering talent in four countries," stated Frank D'Amelio, ACMI's EVP & Chief Technology Officer. This color sensor operates in both full-motion and still capture video modes.

Equally significant to the sensor project itself, ACMI has designed and manufactured a micro-miniature lens system that integrates directly into the sensor. This combination yields a color camera that is smaller than the head of a wooden matchstick. A camera of such dimensions is uniquely suited for miniature medical, surveillance, military and industrial applications. By using its digital CMOS technology, the sensor can be tailored to produce high resolution full-screen images in both normal and low-light situations.

"ACMI has reached a major breakthrough in digital video technology," said Herald Chen, CEO of ACMI Corporation. "Our engineers have developed a technology that can be customized to produce the best possible image for many micro applications. We are currently integrating this technology into our own line of endoscopy products and are exploring other applications with a variety of interested parties."

ACMI Corporation

ACMI Corporation is headquartered in Southborough, Massachusetts and is a Fox Paine & Co. company. ACMI is one of the largest endoscopy companies in the United States, developing, manufacturing and selling diagnostic and therapeutic endoscopic instrumentation products and systems focused in the areas of urology, gynecology, general surgery, and other select clinical specialties. The company has 900 employees, 104 patents and sells in more than 70 countries around the world. For more information, see www.acmicorp.com.

Contacts:
Larry Hicks
Vice President, Sales & Marketing
Phone: 508-804-2689
Email: lhicks@acmicorp.com