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News (Media Awareness Project) - Austria: Drug-Testing Device Will Be Tested In Austria
Title:Austria: Drug-Testing Device Will Be Tested In Austria
Published On:2001-07-18
Source:Los Angeles Times (CA)
Fetched On:2008-09-01 00:56:56
DRUG-TESTING DEVICE WILL BE TESTED IN AUSTRIA

Austrian Ministry Of Interior Will Pay For Study Of System Designed By
LifePoint Inc. In Ontario.

ONTARIO -- LifePoint Inc., maker of an innovative device that quickly
pinpoints drug and alcohol levels with a small amount of saliva, has
been chosen by the Austrian government to participate in a study.

The study could lead to Austria using the product countrywide, said
Linda Masterson, president and CEO of LifePoint. The Austrian Ministry
of Interior will pay for the study, to begin in September. Initial
results are expected by the end of 2001. The study is funded through
mid-2002, according to a company statement.

Austrian police would use the device on drivers determined to be
impaired after doing a field sobriety test, Masterson said. Then a
blood test would be done and sent to forensic toxicologists. The
results would be compared. "Based on these results, if the product
performs the way they expect it to, they would be using it routinely
in the country," Masterson said.

As LifePoint has developed its product and conducted testing, its
revenue stream has been one way. Company officials recently announced
a $7.1-million net loss for the fiscal year ending March 31, or 23
cents per share. Revenues are expected to flow late in the third
quarter of this year, Masterson said, as sales begin.

LifePoint's stock (AMEX: LFP) has gone from a 52-week high of $7.125
to a low of $2.91. It was trading Tuesday at $3.10.

"We're a pre-revenue company," said Michele Clark, chief accounting
officer. "We will be releasing a product in September so this will be
the last year that we will be a development stage company. The main
reason for the loss is we are in fact a development stage company and
we have no revenue to offset our expense."

The company recently added an Ontario office, increasing its space by
32,000 square feet. Staffing levels also have been on the rise,
growing to 75 employees from 17 in April 1999, Clark said. The company
also has started manufacturing, she said.

The company's product, named Impact, is a small disposable device that
from a drop of saliva reads levels of marijuana, opiates, cocaine,
amphetamines, alcohol or PCP in the blood with results in about five
minutes. The company plans to market the device in law enforcement,
including in Europe, emergency rooms and businesses.

"This is going to be a very exciting year for us," Clark said.
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