XiTec, Inc. Announces Emergence from Chapter11.

EAST WINDSOR, Conn.--(BW HealthWire)--Sept. 13, 1999--

XiTec, Inc. announced that the reorganization plan which the company had filed on July 21, 1999 was confirmed by the United States Bankruptcy Court.

"The reorganization plan, as approved by an overwhelming majority of the

creditors, will significantly improve the balance sheet of XiTec with approximately $3 million in debt converting to equity and provide the funding for us to capitalize on our technological strengths and start the process of profitably growing the business," said Michael J. Sullivan, XiTec's President and Chief Executive Officer. "The cooperation and efforts of many people had to come together in reaching this meaningful milestone in the Chapter 11 process and I am particularly grateful for the broad based support from among our creditors with 98% of the debt held by those who voted approving the plan."

"We are extremely pleased with the high level of XiTec's technological expertise, the caliber of its management and skilled personnel and its focus on selected market niches," stated Christopher G. Miller, spokesman for the investor group. "We are excited about the long-term prospects of the company."

A major element of the reorganization plan will be the investment of $900,000 at closing by a private group of accredited investors and up to an additional $600,000 invested, at the option of the investor group, during a six month period following the closing.

Holders of common stock when the plan was confirmed retained their respective shares. The equity interest of these shareholders, however, will be diluted by the issuance of new shares in accordance with the plan.

XiTec designs, develops, and distributes mini C-Arm fluoroscopic imaging systems and components with medical, veterinary and industrial applications.