Neoprobe Corporation (OTCBB: NEOP)

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Symbol: OTCBB: NEOP

Address:
Neoprobe Corporation
425 Metro Place North, Suite 300
Dublin, Ohio 43017
(614) 793-7500

www.neoprobe.com

Top Investment Highlights

Neoprobe is a biomedical company that markets the neo2000® line of gamma detection systems widely used by cancer surgeons.
Lymphoseek®, the company's lymphatic tissue targeting agent, is currently in a multicenter Phase II clinical trial, with a success rate of 97.5 percent.
The company's Quantix® line of measurement products use unique dual beam Doppler technology to permit real-time accurate measurement of volume blood flow and other hemodynamic parameters. Sales for this line increased 77% from 2005 to 2006.
Neoprobe utilizes a number of strategic relationships to fuel the growth, development and distribution of its biomedical products.
A recent review of RIGScan®CR by reimbursement experts resulted in higher than originally expected potential price-point for the drug. The company expects to file a special protocol assessment for RIGScan CR during the second quarter of 2007.
The company launched the first Bluetooth® wireless probes for gamma detection, and also introduced laparoscopic and 11mm versions of wireless probes at the Society of Surgical Oncology.
Neoprobe has an experienced management team dedicated to product development and maximizing returns for shareholders.

Company Overview

Founded in 1982, Neoprobe Corporation is a biomedical company focused on developing and commercializing innovative products to enhance patient care and improve patient outcome. The company hopes to accomplish this by meeting the critical intraoperative diagnostic information needs of physicians and the therapeutic treatment needs of patients. Neoprobe currently markets the neo2000 line of gamma detection systems that are widely used by cancer surgeons and is commercializing the Quantix® line of blood flow measurement products developed by its subsidiary, Cardiosonix Ltd.

In addition, Neoprobe holds significant interests in the development of related biomedical systems and radiopharmaceutical agents including Lymphoseek and RIGScan CR. Neoprobe's subsidiary, Cira Biosciences, Inc., is also advancing a patient-specific cellular therapy technology platform called ACT. The company's strategy is to deliver superior growth and shareholder return by maximizing its strong position in gamma detection technologies and diversifying into new, synergistic biomedical markets through continued investment and selective acquisitions.

Technology

Neoprobe is actively marketing two medical device product lines while it pursues development initiatives for three potentially significant drug/therapeutic products.

The company's device offerings are led by the neo2000 line of gamma detection systems widely used by cancer surgeons in a procedure called lymphatic mapping for the diagnosis and treatment of cancer and related diseases. Additionally, Neoprobe is commercializing the Quantix® line of blood flow measurement products. These products employ a unique and proprietary dual beam Doppler technology that permits real-time accurate measurement of volume blood flow and other hemodynamic parameters.

Neoprobe's drug and therapeutic development efforts are centered on two radiopharmaceutical agents, Lymphoseek and RIGScan CR.

Lymphoseek is a proprietary radioactive tracing agent being developed for use in connection with gamma detection devices in a surgical procedure known as Intraoperative Lymphatic Mapping (ILM). A Phase II clinical study is evaluating the effectiveness and safety of its use in patients with either melanoma or breast cancer. Having obtained positive results in the first stage of the trial (Lymphoseek identified lymphatic tissue in over 97% of the 40 treated patients in Stage 1), Neoprobe has commenced the second stage. The next stage will involve an additional 40 patients with either melanoma or breast cancer; patients are now being enrolled at all five of the cancer centers in the United States participating in the study. The company is also preparing to submit its Phase III protocols and related materials on this product to the FDA.

RIGScan CR is a tumor-specific targeting agent initially intended for use in treatment of colorectal cancer. This product has shown promising results in earlier clinical trials. Neoprobe is focusing its current efforts surrounding RIGScan CR on identifying and securing a development partner and on preparing a request for a special protocol assessment to prepare for future clinical evaluations.

Alliances and Partnerships

The company utilizes the following relationships for the development and distribution of its diversified line of biomedical products:

The Dow Chemical Company for worldwide licenses through the NIH for tumor-specific antibodies and radiolabeling technology
Ethicon Endo-Surgery, Inc. for the worldwide marketing and distribution agreement (excluding Japan) of Neoprobe' gamma detection devices
The University of California San Diego for the development of lymphatic tissue targeting agent
Century Medical Products for the marketing and distribution of gamma detection devices in Japan
ESTECH, Inc. is the exclusive distributor of Quantix products in the U.S. and master distributor in Europe
GMPAC is the exclusive distributor of Quantix products in Pacific Rim

Recent News and Milestones

Early in 2007, Neoprobe received FDA clearance to commence patient enrollment in two additional Phase I clinical studies using Lymphoseek. The studies involve patients with either prostate or colon cancers, and both will be supported with research grants from the National Cancer Institute. The company also received FDA authorization to commence patient enrollment in a multi-center Phase II clinical evaluation of Lymphoseek - its goal is to demonstrate efficacy and confirm the safety of this product in patients with melanoma or breast cancer.

A recent review of RIGScan CR by reimbursement experts resulted in higher than originally expected potential pricepoint for the drug. The company expects to file a special protocol assessment for RIGScan CR during the second quarter of 2007. Additionally, the company launched the first Bluetooth wireless probes for gamma detection, and also introduced larascopic and pediactric versions of wireless probes at the Society of Surgical Oncology.

Financial

The company will continue to execute a dual commercial strategy by expanding upon its foundation of medical devices while developing a platform of recurring revenue products. Its 2006 operation losses were less than those incurred in the previous year despite continued investment in research and development activities. Margin contribution from its medical device businesses covered a significant portion of overhead costs. Fourth quarter revenue for 2006 was $1.9 million, an increase of 32% over comparable fourth quarter revenue in 2005. Most notably, sales of its blood flow measurement devices increased 77% from 2005 to 2006, rising from $340,000 to $604,000. The company expects the commercial opportunities afforded by Lymphoseek to fuel much of its financial growth in 2007.

Zhao Yao, Chief Operating Officer
Mr. Zhao Yao is a co-founder of Puda and is the brother of Mr. Zhao Ming. He was named Chief Operating Officer in 1999. He also serves as an executive officer and is the 75% owner of Jucai Coal. Mr. Zhao graduated from the University of Shanxi in Taiyuan City, Shanxi Province in 1982 with a bachelor's degree in coal study. He received his master's degree in coal study from Tsinghua University in Beijing in 1985. He received the Distinguished Entrepreneur award from the Shanxi provincial government in 2002.

Business Goals and Strategy

The company believes that its business and financial prospects and opportunities have improved significantly in recent months, and plans to aggressively pursue continued growth and development by:

Completing patient enrollment in Phase II clinical study of Lymphoseek at cancer research centers in the U.S.
Initiating global multi-center Phase III clinical studies of Lymphoseek in patients with either melanoma or breast cancer during second half of 2007
Continuing the clinical evaluation of Lymphoseek in prostate and colon cancers with the goal of expanding application of lymphatic mapping to these and other tumor types
Maintaining the leadership position of its gamma detection device business to provide consistent or improve financial contribution as compared to 2006
Growing the revenue contribution from its blood flow measurement products
Continuing to support the development activities fro RIGScan CR with additional regulatory submissions and commencing manufacturing transfer with the assistance of a development partner

Management

David C. Bupp, President and CEO
Prior to joining Neoprobe in 1989, Mr. Bupp was Senior Vice President and Regional Manager for AmeriTrust Company National Association, a nationally chartered bank holding company, where he was in charge of commercial banking operations throughout Central Ohio. Mr. Bupp has a B.A. degree in Economics from Ohio Wesleyan University.

Anthony K. Blair, Vice President, Manufacturing Operations

Carl M. Bosch, Vice President, Research and Development

Rodger A. Brown, Vice President, Regulatory Affairs and Quality Assurance

Brent L. Larson, Vice President of Finance, CFO

This corporate profile is based upon information provided by management of Neoprobe Corporation. The information is not intended to be and shall not constitute, an offer to sell or solicitation of any offer to buy any security. It is intended for information only and to increase awareness of Neoprobe Corporation's services. Safe Harbor Statement: The statements in this document relating to future product availability, collaboration and partnership and positive direction are forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Some or all of the aspects anticipated by these forward-looking statements may not, in fact, occur. Factors that could cause or contribute to such differences include, but are not limited to, contractual difficulties, demand for Neoprobe Corporation' products, the future market price of Neoprobe Corporation common stock and the Company's ability to obtain necessary future financing. EQUITIES Magazine was paid by Neoprobe Corporation to write and print this profile. Before investing in any security, you are strongly advised to review all public filings of the issuer of such security, which can be found at www.sec.gov, as well as the warnings published by the Securities and Exchange Commission at http://www.sec.gov/investor.shtml.