A Diagnostics & Imaging Week

Lifestream Technologies (Post Falls, Idaho), a supplier of cholesterol monitors, reported that it has entered into a patent and trademark assignment and license assumption agreement with RAB Special Situations Fund for the sale of certain patents pending, licenses, and other intellectual property for the company's personal health card technology.

In connection with this agreement, the company assigned to RAB all of its right, title and interest in certain patent applications, trademarks and related license agreements in exchange for the cancellation of $4.5 million of secured and unsecured debt. The cancelled debt consisted of $3.48 million evidenced by various convertible term notes previously issued by the company in favor of RAB and $1.02 million evidenced by a loan agreement dated Nov. 12, 2004, between the company and RAB under which the outstanding balance as of the date of the assignment was $2.87 million.

Matt Colbert, Lifestream's CFO, said, "Since January 2005, we have converted into common stock approximately $2.35 million in debt and accrued interest and significantly reduced general and administrative expenses. Coupled with this debt reduction, we are better positioned for a capital investment to facilitate the expected rollout of our new Lifestream Two-in-One Blood Pressure/Cholesterol Monitor. We will continue to pursue additional cost-saving measures, as well as debt reduction and debt restructuring over the coming months."