Trimedyne Eyes Surgical Alliance Purchase

IRVINE, Calif., July 31 -- Trimedyne Inc. has entered into a Letter of Intent with Surgical Alliance Inc. of Birmingham, Ala. Surgical Alliance provides lasers and other equipment and disposables, along with a trained operator, to hospitals, surgery centers, group practices and physicians' offices on a "fee per case" rental basis in Alabama, Georgia and Tennessee.

Under the Letter of Intent, Trimedyne will evaluate the feasibility of acquiring all or a portion of the business or assets of Surgical Alliance. The Letter of Intent does not bind the parties to any specific arrangement, but it prohibits Surgical Alliance from selling any substantial portion of its assets until after Dec. 31, 2001.