For Information Contact:
Michael Good
800.732.1070
mgood@tgxmedical.com

TerraGraphiX Acquires Surgical Instrument Tracking System

Carmel, Ind. (May 13, 2002) - TerraGraphiX Inc., an Indiana-based developer of location-sensitive software solutions, announced the acquisition of Alex Software Systems from Paragon Medical, Inc.

The software product, Alex, tracks the location and status of surgical instruments in hospitals and healthcare facilities to provide effective control of expensive and mission critical assets. Now in use in over 40 hospitals in North America and Canada, TerraGraphiX plans to enhance existing systems and expand sales as the premier provider of the solution.

"Acquiring Alex Software allows us to enter the health care industry with a critical application that fits TerraGraphiX's strategy for growth," said Todd Wood, CEO of TerraGraphiX. "Building on software solutions for location-sensitive applications that started in the public safety vertical market, we will continue to leverage our core competencies and expand into additional markets."

Tobias W. Buck, CEO of Pierceton, Indiana- based Paragon Medical, Inc., stated, "We are pleased that the Alex customers will now be supported by TerraGraphiX. The sale allows Paragon to focus on the OEMs for medical instrument delivery systems, instruments, trials and implantable components."

The Alex software system tracks and stores surgical instrument inventory and displays its status, provides auditing functions, and keeps track of vendor communications throughout the life cycle of the equipment. The system tracks vital instruments from operating rooms through decontamination to storage, and everywhere in between. Terms of the transaction were not disclosed.

Paragon Medical, Warsaw, Indiana (www.paragonmedical.com), serves the global surgical instrument marketplace through the design and provision of fine medical products.

About TGX Medical Systems
TGX Medical Systems Inc., the Indiana-based development software firm that owns the Alex Software, is headquartered in Carmel, Indiana, USA. TGX Medical Systems designs, develops and markets software solutions for medical asset management and tracking. These web-based systems work with specialized hardware supplied by major integrators. They are sold to small, medium and large-sized hospitals and medical facilities. TGX Medical Systems's systems are distinguished from competition by their sophisticated interfaces, scalability and ease of modification and are extensively patented. Our markets are worldwide. The TGX Medical Systems website is www.tgxmedical.com.