TIRAT CARMEL, ISRAEL--(Marketwire - March 28, 2011) - D. Medical Industries Ltd. (NASDAQ:DMED)(TASE:DMED) ("D. Medical" or the "Company"), a medical device company engaged through its subsidiaries in the research, development, manufacture and sale of innovative products for diabetes treatment and drug delivery, announced today that its subcontractor, UPG (Suzhou) EPZ Co. Ltd. ("UPG"), a subsidiary of United Plastics Group, Inc., has commenced the mass production of its Spring Universal Infusion Sets in Suzhou, China.
UPG is a full service contract manufacturer in the medical, consumer, automotive and electronics market segments. Under a definitive manufacturing and supply agreement, announced on August 17, 2010, UPG is supplying D. Medical, as a non-exclusive supplier, with the Spring Universal Infusion Sets at agreed upon prices per unit, and D. Medical is obligated to purchase certain minimum quantities of the products. UPG's production and supply of the consumable components of D. Medical's Spring Adi durable insulin pump and, when available, its Spring Hybrid Patch Pump, is expected to be launched under the aforementioned agreement later this year.
"We are proud to have completed, tested and launched the manufacturing line for the first product under our agreement with D. Medical on budget and in such a timely fashion," said Tom Opielowski, President of UPG China.
Efri Argaman, Chief Executive Officer of D. Medical, commented, "Our Spring Universal Infusion Sets include best-in-class features such as our proprietary Detach-Detect mechanism; hidden auto-retractable needle; and the smallest available one-click, all-in-one inserter; offering a user-friendly and trustworthy solution to the disposable component of the insulin delivery system. The accomplishment of launching the mass production line for this important product will enable us to introduce and promote the "Spring" brand name to and across various target markets – including the United States, Canada, Europe, Mexico and the BRIC countries of Brazil, Russia, India and China – while, at the same time, ensuring that we are able to meet the anticipated demand."
Hezkiah Tsoory, Chief Operating Officer of D. Medical, said, "With the smooth accomplishment of the first mass production line at UPG's Suzhou facility, the Company is now poised to begin the process of transferring the manufacturing of its other products to China."
About United Plastics Group
Headquartered in Oak Brook, Ill, United Plastics Group, Inc. is one of the largest non-captive custom injection molding and contract manufacturing providers in North America. With over 800,000 square feet of manufacturing capacity and 460 molding machines in 10 facilities in the United States, Mexico, Europe and China, United Plastics Group is dedicated to being the leading provider of high quality, low cost, engineered injection molded products and services worldwide.