Medizone International, Inc. (OTCBB: MZEI)

Medizone International, Inc. (OTCBB:  MZEI)

is a research and development company engaged in developing its AsepticSure™ technology to decontaminate and sterilize hospital surgical suites, emergency rooms, intensive care units, schools and other critical infrastructure.

To meet the unique challenges of hospital acquired infections, Medizone has assembled an international team of professional engineers who are finalizing design of the first pre-manufacturing prototype to be used in hospital beta testing, which will commence later this spring.

Given the outstanding range of bactericidal kill rates achieved to date with the pathogens most often associated with hospital derived infections, it has become clear there are opportunities abounding to expand scientific horizons through collaborative arrangements in many diverse applications.  While the acute demand of hospital acquired infections remain pre-eminent the need for bio-terrorism applications grows each day.

Commercial Viability ofAsepticSure™ Hospital Sterilization System

From a commercial viewpoint, the higher the “kill rate” in the shortest turn around time, the more favorably physicians and hospital administrators will view the system. Accordingly, Medizone now believes that the performance profile of its AsepticSure™ Sterilization System will exceed all the prerequisite requirements of affordability, practicability and unmatched efficacy, which will catapult it into the world market.

AsepticSure™ BioTerrorism Applications

A field hardened version of AsepticSure™  is anticipated to be used in bioterrorism settings internationally as it will be easily deployable in response to virtually any terrorist assault, extremely effective against a broad range of lethal pathogens, easy to manage and maintain and has the potential to save lives.  The potential of being able to eliminate 99.999992% (7.2 log kill) of an internationally accepted surrogate for Anthrax in 90 minutes will have national security implications.

Unprecedented Kill Rates Foundation for Second Patent Application and Full Scale Hospital Mockup Underway

The successful completion of the first full round of room scale testing with AsepticSure™ sterilization system indicated all pathogens of cause with HAIs were completely eliminated from stainless steel surfaces at concentrations well above 6 log. These results have confirmed the laboratory findings reported earlier this year, but what is of even greater significance are the insights gained into the technical modifications necessary to accommodate the unique requirements of decontaminating within a hospital environment.

Work will continue on the room scale testing program in order to expand understanding of factors that will enhance the efficiency and effectiveness of AsepticSure™, particularly when dealing with contaminated textiles in time sensitive hospital spaces.  The start of beta testing is anticipated to begin the fourth week of August.

Four Instrumented Prototypes

Medizone will build four highly instrumented prototype units for use in its hospital program, thereby enabling precise performance assessment of all AsepticSure™ systems as concurrent outcome measures, which will form the basis for final production design work, manufacturing and ultimately commercialization later this year.Medizone International announced unprecedented success in being able to predictably achieve 6 log (99.9999%) kill rates for the causative agents of Hospital Acquired Infections (HAIs) represented with AsepticSure™.

All samples tested during the third round of trials were either completely destroyed, that is no growth compared to the control samples, or so significantly reduced that the effect met the 6 log definition for sterilization.

The actual results of this series of tests indicate reductions in pathogens, commonly associated with HAIs, can reliably be achieved by AsepticSure™ as follows:

• >6.5 log for C difficile
• >7 log for MRSA
• 7 log for E-coli
• 6.6 log for VRE
• 7 log for Pseudomonas aeruginous
• > 7 log for Bacillus subtilis

The sterilization of contaminated hospital spaces with a fully portable unit is now within reach without enormous expense, which will translate into greatly reduced suffering, thousands of lives saved and a dramatic cost benefit for the health care system globally.

Full Scale Hospital Mock Up Underway

Medizone’s research has now progressed to the full-scale mock up.  By introducing the same combinations and protocols to room scale testing that produced >6 log with all HAI pathogens in the laboratory, our research team is confident the results produced should coincide with what has already been achieved in the most recent round of laboratory trials.  Initial results from these scale-up trials can be expected in the near future.

AsepticSure™ Hospital Sterilization System

In parallel research conducted at BioZone Corporation, Medizone’s engineering development partner, it was confirmed the AsepticSure™ hospital sterilization system can charge a room of 1,065 cubic feet to the target ozone level in less than 15 minutes, which is followed by the ozone decontamination phase. The same room can then be returned to a habitable standard (less than 0.02 ppm ozone) in 13 minutes using a separate ozone destruct technology. This confirms the start to finish time to complete the entire decontamination process can be achieved with minimal disturbance to normal hospital flow patterns.

Commercial Viability ofAsepticSure™ Hospital Sterilization System

From a commercial viewpoint, the higher the “kill rate” in the shortest turn around time, the more favorably physicians and hospital administrators will view the system. Accordingly, Medizone now believes that the performance profile of its AsepticSure™ Sterilization System will exceed all the prerequisite requirements of affordability, practicability and unmatched efficacy, which will catapult it into the world market.

Second Patent Application for Both AsepticSure™ Hospital Version and Government Variant

On July 7th, the Patent Cooperation Treaty (PCT) filing was announced. The significance of that filing should not be underestimated. It represents the international cornerstone of intellectual property protection for AsepticSure™. In subsequent discussions with our lead patent attorney, additional filings have been suggested in order to build a very strong “patent fence” around our initial PCT application. The first of those filings may be anticipated later this year.

On January 20, 2010, Medizone International, Inc. filed a second patent application was filed in combination with its previous patent application for AsepticSure™ filed in July of 2009. This patent application affords the Company greatly enhanced protection for both the hospital version of AsepticSure™ and the government variant intended for bio-terrorism countermeasures.

The integration of several complimentary technologies, each with their own antimicrobial effects, which in combination were shown not to be additive, but multiplicative motivated this filing.

AsepticSure™ Hospital Sterilization System

In parallel research conducted at BioZone Corporation, Medizone’s engineering development partner, it was confirmed the AsepticSure™ hospital sterilization system can charge a room of 1,065 cubic feet to the target ozone level in less than 15 minutes, which is followed by the ozone decontamination phase. The same room can then be returned to a habitable standard (less than 0.02 ppm ozone) in 13 minutes using a separate ozone destruct technology. This confirms the start to finish time to complete the entire decontamination process can be achieved with minimal disturbance to normal hospital flow patterns.

Medizone International, Inc. Research Laboratory

Medizone has a  BSL2A Certified Laboratory  is Located in Innovation Park, Queen’s University at Kingston, Ontario, Canada

This laboratory is fully equipped to meet bio-safety level 2 laboratory standards and is dedicated exclusively to Medizone research.

The laboratory is located in the heart of one of the finest bio-medical communities and is providing a primary research and development platform for the Corporation as it proceeds down what is now a clear path to commercialization with its lead product, AsepticSure™.

Given the outstanding range of bactericidal kill rates achieved to date with the pathogens most often associated with hospital derived infections, it has become clear there are opportunities abounding to expand scientific horizons through collaborative arrangements in many diverse and exciting new applications.

This facility provides Medizone International a platform for laboratory research which has the potential to expand beyond AsepticSure™.

Virtually Unlimited Demand for Product

The United States Congress and various State Legislatures have taken official notice of the issues associated with Hospital Acquired Infections.

Laws are being in enacted in a majority of States to require that hospitals report the number of Hospital Acquired Infections.

Medicare will NO LONGER REIMBURSE HOSPITALS for treating hospital acquired infections.  In essence their point is simple:  You made them sick.  You make them well.  Private insurance carriers are beginning to do the same.

Hospitals are being forced to COME OUT OF THE CLOSET with their facts regarding hospital acquired infections.

Demand for an effective product is huge.

The Silent Epidemic

The chart above represents the Hospital Acquired Infections and Deaths for U.S. hospitals in 2002 based on the most recent CDC Report which tabulated these figures.

As the notes that came from the source for this chart point out, Hospital Acquired Infections are a huge problem in hospitals today.  Although this data is from 2002, the situation has progressively become more serious.  See:  CDC Public Health Report at page 163 of the Report.   Here are the notes that accompanied the chart found on page 163 of the report:

“From the total number of surgical site infections (SSI) obtained from the National Hospital Discharge Dataset and the National Nosocomial Infections Surveillance (NNIS) system, we subtracted the number of SSI among newborns and adults and children in intensive care units. The remaining SSI were among adults and children outside of intensive care units. From hospital-wide surveillance in NNIS, we had the distribution of infectons by major site and calculated the corresponding number of infections for pneumonias (PNEU), urinary tract infections (UTI), bloodstream infections (BSI), and other sites.”

Hospital Acquired Infections in the United States

In 2002, there were approximately 1.7 million total infections.

Of these:

• 33,269 occurred among newborns in high-risk nurseries
• 19,059 among newborns in well-baby nurseries
• 417,946 among adults and children in ICUs
• 1,266,851 among adults and children outside of ICUs.

In that year, the estimated deaths in U.S. hospitals were 98,987.

Of these:

• 35,967 were for pneumonia
• 30,665 for bloodstream infections
• 13,088 for urinary tract infections
• 8,205 for surgical site infections, and
• 11,062 for infections of other sites.[1]

Hospital Acquired Infections Are an International Problem

In a World Health Organization Survey of 55 hospitals in 14 countries representing four regions, an average 8.7% of hospital patients had nosocomial infections.

Hospital Acquired Infections

• C-difficile
• E-coli
• Pseudomonas aeruginous
• MRSA
• VRE

C. Difficile

C. Difficile is the most serious cause of antibiotic-associated diarrhea (AAD) and can lead to pseudomembranous colitis, a severe infection of the colon, often resulting from eradication of the normal gut flora by antibiotics. Some estimates place the added cost to the healthcare for C. Difficile alone at $17.6 million daily. The CDC estimates that C. Difficile ases in the US may reach 500,000 annually leading to potentially 30,000 deaths.

MRSA

Methicillin-resistant Staphylococcus aureus (MRSA) is a bacterium responsible for difficult-to-treat infections in humans. MRSA are by definition strains of Staphylococcus aureus that are resistant to a large group of antibiotics called the beta-lactams. CDC reported (JAMA, 2007) that the number of serious infections by MRSA in 2006 was close to 100,000, with approximately 19,000 associated deaths.

Current Methods at Sterilization Are Not Sufficiently Effective

Medizone Leadership:

Edwin G. Marshall – Chairman of the Board & Chief Executive Officer

Following a period of time in which he unsuccessfully attempted to influence and guide former management as a shareholder, a successful hostile proxy action was completed on June 12,1997.

Mr. Marshall took over as Chairman of the Board. Milton G. Adair, former President and CEO of Gull Laboratories was appointed Chief Executive Officer and President. Mr. Adair left the Company to pursue other interests in 1998. Mr. Marshall then took over the additional responsibility of Chief Executive Officer.

Mr. Marshall attended Santa Rosa Community College and the College of Marin, studying fire science and business administration. Until 1978 Mr. Marshall worked in the fire service in a city with a major chemical industrial complex, leaving with the rank of Captain. A successful private investor since 1973 in precious metals, securities and real estate, after leaving the fire service he went to work in the real estate brokerage business. From 1978 until 1995 he pursued various business interests in real estate brokerage, a vacuum forming business in the plastics industry, an industrial computer controls company, and an automobile and truck dealership. Since 1997 he has devoted all of his business time to management responsibilities with Medizone.

Richard Garret Solomon – Director and Executive Officer

Mr. Solomon first invested in Medizone in 1992. In 1995, Medizone New Zealand Limited (a partially owned subsidiary of Medizone International) was formed as a 50/50 joint venture. In January 1996, until February 1997, Mr. Solomon was a Director of Medizone International, Inc. and has rejoined the board as of May 1, 2000.

Mr. Solomon received a Bachelor of Commerce (University of Otago), Diploma of Business and Industrial Administration (University of Auckland), and is an Associate Chartered Accountant. His career has been in business and investment, and for 20 years he developed and ran his own private hospital operating company, Haven Care Hospitals Limited. He was a longstanding Board member and President of the New Zealand Hospitals Association. He lead the establishment of The New Zealand Council of Healthcare Standards, Inc.

Daniel D. Hoyt – Board Member

Mr. Hoyt graduated from Indiana University with a Bachelor of Science degree in General Business Administration in 1962. For the past 31 years, he has been involved in the life insurance and group benefits industry achieving both industry-wide and national company recognition for production and mentorship. Mr. Hoyt takes great pride in the relationships he has built through consultations with his business clients that range from large public companies to small private businesses. Throughout his career, he has served as mentor to many other entrepreneurs. Mr. Hoyt previously worked 7 years as an account executive at Merrill Lynch and as Chief Executive of two and Vice President of one Chamber of Commerce in Indiana. In addition to his board position with Medizone International, Mr. Hoyt is the Chairman of the Board of Biological Systems, Inc., a bio-cleansing, microbial remediation system dealing with natural animal fats and oil-based materials.

Mr. Hoyt is and has been very active in his community and church. These activities and positions include: current board member of the Indiana University Cancer Center Development Board; former board member and chair of Saint Mary of the Woods College, Terre Haute, IN; board chair of Our Lady of Fatima Retreat Center; twice chair of the Parents Association of Ball State University. Numerous other board and leadership positions include St. Elizabeth Home for Unwed Mothers, past president of Indianapolis Sierra Club, Prevent Blindness of Indiana; Indianapolis Business Development Foundation and Christamore Settlement House. He is currently chair of the Rebuild My Church Board of Visitors of Marian College, an active member of Immaculate Heart of Mary Catholic Church and a founding member of Pink Ribbon Connection, a newly formed group serving the needs of breast cancer patients and survivors in central Indiana (he is a 10-year survivor).

Steve M. Hanni – Chief Financial Officer

Mr. Hanni has served as Medizone International’s Chief Financial Officer since April 2, 2002.

Additionally, Mr. Hanni is the Audit Partner-in-Charge and Vice-President of the accounting firm, Stayner, Bates & Jensen, P.C., located in Salt Lake City, Utah. He was formerly a partner with the accounting firm, HJ & Associates, LLC, also located in Salt Lake City. HJ & Associates serves as the Company’s audit firm.

Mr. Hanni has worked closely with many different types of companies and organizations and has extensive auditing and consulting experience in the following industries: Mortgage Banking, Construction, Manufacturing, Oil and Gas companies, Retail, High Technology, Non-profit and Pension Plans.

In addition, Mr. Hanni has significant experience with Securities and Exchange Commission listed companies, including registration statements, public offerings and audits as well as providing management advisory services.

Contact information:
Medizone International, Inc. (OTCBB: MZEI)
(See Medizone International Video)
http://www.medizoneint.com

Telephone:  415-868-0300
Fax:  415-868-2344
Address:
Post Office Box 742
Stinson Beach, CA 94970

This Profile contains certain forward looking statements that involve substantial risks and uncertainties, including, but not limited to, the results of ongoing clinical studies, economic conditions, product and technology development, production efficiencies, product demand, competitive products, competitive environment, successful testing and government regulatory issues. Additional risks are identified in the company’s filings made with the Securities and Exchange Commission.

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