(BW) (SALIVA-DIAGNOSTIC)(SALV) SE Asia Studies Show Good Results for Saliva Diagnostic Systems' Rapid HIV Test; Vietnam and Malaysia studies compare Hema-Strip HIV to other widely-used HIV tests New distribution partners in South America

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VANCOUVER, Wash.--(BUSINESS WIRE)--Sept. 29, 1997-- Studies recently completed by independent investigators in Malaysia and Vietnam using Hema-Strip HIV, a rapid whole blood test developed by Saliva Diagnostic Systems, Inc. (Nasdaq: SALV), indicate the device is equivalent in sensitivity and specificity to other, widely-used tests to detect HIV infection.

In Vietnam, the Permanent Office of the Ho Chi Minh City AIDS Committee found no difference in sensitivity and specificity between Hema-Strip HIV and two other tests often used to detect HIV, including an Enzyme Linked Immunosorbent Assay (ELISA) laboratory test and a widely accepted latex agglutination test from Japan. Nearly 500 samples were used in that study. In Malaysia, the HIV/Hepatitis Laboratory at the Kuala Lumpur Hospital also rated Hema-Strip HIV as having 100% sensitivity and specificity when compared to their standard HIV testing algorithm. The Malaysia study noted that "the test kits are easy to handle," referring to the few, simple steps required to use Hema-Strip HIV and the rapidity of results.

"Southeast Asia has been one of the hardest-hit areas outside Africa for HIV infection," said Dr. Paul Slowey, the company's Chief Operating Officer. "In our opinion, these independent studies increase our credibility in the region, and enhance our ability to enter these markets. Additional studies are underway in other Asian countries."

In other news, the Company said it had signed two new distribution contracts in South America. The first is with SJL, Inc. of Florida who will provide distribution of the Hema-Strip HIV test in Chile and Peru. The agreement calls for a minimum quota of over a million tests before the year 2,000. The second contract is with Tecnopromed, Ltd. of Bogota who will distribute all of its rapid HIV tests in Colombia. This agreement includes a minimum order for over half a million tests over the next three years.

"Country by country, these contracts begin to add up," said Slowey. "We are now in the phase of getting our products into the hands of end-users. As the merits which are obvious to us are recognized, we expect our sales to increase significantly."

Saliva Diagnostic Systems is a developer and manufacturer of rapid tests for infectious diseases and certain other conditions. The company is based in Vancouver, Washington with operations in Singapore and London. SDS products include a range of rapid tests to detect HIV antibodies that use serum, whole blood and saliva for analysis. The tests, which require only a few simple steps to use, are designed to produce results within minutes without special equipment, training or storage. The company has also developed a rapid blood test to detect Helicobacter pylori (a bacteria linked to peptic ulcers), and is in the process of developing rapid serum tests for Hepatitis A and Tuberculosis.

This press release contains forward-looking statements that involve a number of risks and uncertainties. Factors that could cause actual results to differ materially include the following: changes in demand for the company's products, the ability of the company to increase manufacturing capacity, the ability of the company to obtain regulatory approvals, success in technological advances and their implementation, cost and yield issues associated with production, the ability of the company to raise additional capital, and other risk factors listed in the company's Amendment No. 1 to the Registration Statement dated June 13, 1997.

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CONTACT: Saliva Diagnostic Systems, Inc., 360/696-4800

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