Chembio signs a letter of intent with Alverix, Inc. to develop rapid point of care diagnostic systems.

At the time of this press release and the signing of the Letter of Intent, Alverix Inc, was an operating business unit within Avago Technologies.
 
Market Wire   May 10, 2007
Chembio Diagnostics, Inc. (OTCBB: CEMI) and Avago Technologies have signed a letter of intent (LOI) to enter into a collaboration that will integrate Chembio's patented DPP technology and assay development expertise with Avago's opto-electronic measurement technology. The parties intend that this collaboration will facilitate the development of rapid point of care diagnostic systems which are technically superior to currently marketed devices. The initial disease focus will be various HIV test prototypes employing Chembio's DPP technology that would be developed with third parties pursuant to their specifications. Other rapid tests employing these technologies are also under discussion.

The collaboration is based on the co-promotion of each company's technology to third party diagnostic or other companies that need an integrated rapid point of care test system. The LOI further provides for the establishment of milestones related to product development and validation, regulatory approval, and minimum sales.

Chembio and Avago have been collaborating for the last several months on rapid device test prototypes that reduce subjectivity, have enhanced sensitivity and accuracy, and provide data collection and storage capabilities. In addition, the devices can be produced cost effectively in volumes to meet market demands.
 ­
Javan Esfandiari, Chembio's Senior Vice President of Research & Development, commented, "Chembio is pleased to enter into this collaboration with Avago RDx, one which we believe will enhance each company's technology and will enable the delivery of simple, next-generation rapid tests into new markets not being served today. We look forward to working with Avago RDx."
 
ABOUT CHEMBIO
 
Chembio Diagnostics, Inc., a developer and manufacturer of rapid diagnostic tests for infectious diseases, is on the frontlines of the global battle against the AIDS pandemic. The Company has received marketing approval from the FDA for its SURE CHECK® HIV 1/2 and HIV 1/2 STAT-PAK(TM) rapid tests, marketed in the United States by Inverness Medical Innovations. The Company also manufactures rapid tests for veterinary Tuberculosis and Chagas Disease.
 
In March 2007 Chembio was issued a United States patent for the Dual Path Platform (DPP(TM)), a next-generation lateral flow platform DPP has demonstrated significant advantages over currently available lateral flow methods, including increased sensitivity, sample flexibility, and multiplexing capabilities. Further information on the technology is available at http://www.chembio.com/newtechnologies.html .
 
Chembio contact: Matty Arce marce@chembio.com 632-924-1135 x123