Released on: October 23, 2008, 10:05 am

Press Release Author: Bruce Kneeland/PharmacyConnections

Industry: Pharmaceuticals

Press Release Summary: RDC will test the XT250(tm) Material Identification System, a
sophisticated new technology from XStream Systems that identifies the exact
molecular structure of a medication inside an unopened package.

Press Release Body: XStream Systems, Inc, a molecular pharmaceutical authentication
company headquartered in Sebastian, Florida today announced that is has entered into
a pilot program with RDC, Inc.; a member owned pharmaceutical distribution
cooperative headquartered in Rochester, New York. RDC will be testing the XT250(tm)
Material Identification System, a sophisticated new technology that identifies the
exact molecular structure of a medication inside an unopened package. The purpose
of the pilot will be to determine if the technology can best be used to test and
identify potentially adulterated or counterfeit product.

According to Larry Doud, CEO of the cooperative there is an ever growing concern
about the integrity of the pharmaceutical supply chain in the United States. Doud
emphasizes that RDC is an Authorized Distributor of Record, meaning that all product
stocked in its warehouse was purchased directly from the manufacturer. Still he
says, "Because there are reports of organized crime and other sophisticated
organizations working to obtain high value medications and replace them with
counterfeit product he has authorized the pilot program." During the pilot RDC will
use the XT250 Material Identification System to scan product with a high incidence
of counterfeiting in their order receiving and returned goods procedures.

According to Alan Clock, SVP of XStream the XT250 is a truly unique piece of
technology that is finding multiple uses in the pharmaceutical supply chain. "What
makes the XT250 so practical is that by using this technology the user can determine
if a product inside a sealed package is in fact the medication referenced on the
label." According to Clock this means that product can be tested in real time, by
non-scientific personnel in a few seconds all without the need to open the bottle or
package it was shipped in.

In further commenting on the pilot Doud indicated he is eager to see the results of
the random product tests performed in the warehouse, but he indicates he does not
expect to find any counterfeit or adulterated product because of the care his
organization takes in ordering, storing and shipping product. Doud says "We are
honored to have been selected by XStream to participate in this test and look
forward to helping them see how their unit performs in a real world application."
Clock says XStream selected RDC for the test because "The type and variety of
product RDC ships on a daily basis will provide us with the data elements we need to
refine and improve the functionally of the XT250."

Clock further indicates that as the data from the pilot program become available
they will be sharing it with the industry at an upcoming industry symposium on
Anti-Counterfeiting and Anti-Diversion Strategies as well as with other industry
leaders. According to Clock the pharmaceutical industry has spent millions of
dollars over the past several years to find ways to product the integrity of the
supply chain and that much of these efforts have revolved around radio frequency
identification (RFID) chips that are embedded with serial numbers and other
identifying codes. But, Clock says one problem with RFID or any type of sensor
based solution is that they only look at the package, not the product. The true
benefit of the XT250 is that it looks at the material inside the container and can
determine not only if it is legitimate, but if it has been adulterated or tampered
with. Clock says XStream is indebted to RDC for its willingness to donate space,
time, labor and senior management support to this pilot.

XStream Systems, Inc.
XStream Systems produces next-generation equipment for material identification.
Their patented systems are based on Energy-Dispersive X-Ray Diffraction (EDXRD)
technology. The company's XT250(tm) System enables testing of powders, pills AND entire
sealed bottles. The equipment's superior sample penetration allows the
identification of contents inside opaque plastic, cardboard and even metal
packaging.

For more information, call 1-800-597-1191 or visit www.xstreamsystems.net


RDC, Inc.

RDC is an independently owned Wholesale Drug Cooperative servicing over 800
community retail pharmacies, long-term care pharmacies, and home health care stores
in New York State, New Jersey, Pennsylvania, and Ohio. www.rdcdrug.com


Web Site: http://www.xstreamsystems.net

Contact Details: For More Info Contact:

Bruce Kneeland
Pharmacy Industry Consultant
PharmacyConnections
610-792-2477
brucekneeland@comcast.net

Rosie Adams
XStream Systems, Inc.
772-646-6261
r.adams@xstreamsystems.net