SurgiCount Medical, Inc., has come to be recognized as a leader in the race to eradicate the problem of retained surgical sponges, which occur once in every 8,000 surgeries. SurgiCount is a wholly owned subsidiary of Patient Safety Technologies, Inc., and is based in Irvine, Calif. SurgiCounts Safety-Sponge System consists of a line of uniquely identified surgical sponges and towels and a turnkey hardware and software offering integrated to form a comprehensive accounting and documentation system. To date more than 8 million medical procedures have been completed utilizing the Safety-Sponge system, resulting in the successful accounting for more than 160 million sponges, and eliminating an estimated 1,000 retained surgical item events. We estimate that over 190 million of our Safety-Sponges have been successfully used in more than 9 million surgical procedures. We sell our Safety-Sponge System to hospitals through our direct sales force and by leveraging the sales and marketing capabilities of our distribution partners.