FemRx and Vivra Women's Health Create Partnership to Promote Minimally Invasive Alternatives to Hysterectomy

SUNNYVALE, Calif., July 27 -- FemRx(R), Inc. (Nasdaq: FMRX) and Vivra Women's Health, a subsidiary of Vivra, Inc., today announced a partnership to promote minimally invasive alternatives to hysterectomy within Vivra's managed care physician networks. The new program will focus on increasing patient awareness and choice as well as training Vivra's obstetrics-gynecology physicians in the use of high-technology, minimally invasive surgical instruments and procedures.

"We are especially impressed with FemRx's approach to the continuum of care, which provides a range of minimally invasive surgical solutions, and their strong reliance on clinical data to support the application of these procedures," commented David Joyner, president of Vivra Women's Health. "FemRx has exciting new technologies that enable many more surgeons to offer patients a less invasive choice. FemRx will be Vivra's technical partner in establishing the clinical, marketing and financial development programs that ultimately will make alternatives to hysterectomy available to thousands more patients nationwide."

"Our partnership with Vivra is a terrific opportunity for FemRx," commented Andrew Thompson, FemRx president and CEO. "Vivra is one of the nation's largest, most innovative physician management companies focused on obstetrics-gynecology. It has pioneered physician training and economic incentive programs that encourage surgeons to learn new skills and to adopt less invasive procedures. Vivra's strong commitment to delivering the highest quality patient care at the lowest possible cost is identical to our own business philosophy -- and the driving force behind every proprietary surgical system we develop."

Founded in 1994, Vivra is one of the nation's largest and most successful physician network companies. A privately held company backed by three large investment firms, Vivra has headquarters in San Mateo, Calif. and regional offices in Atlanta, Ga.; Nashville, Tenn.; Plantation, Fla.; Chevy Chase, Md. and Richmond, Va. Vivra operates single-specialty networks in 15 specialty areas with 5,000 participating physicians and 11 million covered lives.

FemRx, Inc., headquartered in Sunnyvale, Calif., has developed proprietary surgical systems that enable surgeons to perform less invasive alternatives to hysterectomy. A hysterectomy is performed for 37 percent of all women in the U.S. by the age of 60. The Diva(TM) Laparoscopic Morcellator is used to treat patients with significant pathology and eliminates the need for a large abdominal incision. The OPERA STAR(R), OPERA STAR SL, Flo-Stat(TM) and Maestro(TM) are used to perform surgery inside the uterus without any patient incision, and help women who have problems inside their uterus. The Soprano(M) Cryotherapy System is cleared for general use and is undergoing clinical trials evaluating the use of extreme cold to destroy tissue inside the uterus which causes bleeding. FemRx markets its products through its Center of Excellence program, a partnership between the company, hospitals and physicians. In addition, the company has a network of specialty distribution partners with 75 representatives covering the U.S. to support sales of instruments. FemRx common stock is traded on the Nasdaq Stock Market under the symbol FMRX and the company's World Wide Web address is www.femrx.com.

This press release contains forward-looking statements that involve risks and uncertainties that could cause actual results or events to differ materially from those in such forward-looking statements. Potential risks and uncertainties include, without limitation, those mentioned in FemRx's Form 10-K dated March 25, 1998.

SOURCE FemRx, Inc.

CONTACT: Ed Unkart, Chief Financial Officer of FemRx, 408-752-8580 ext. 105; Sandy Baksys, Weber-RBB, Vivra Women's Health, 305-448-7450; or Ann Trunko, general information, or Kate Rajeck, analyst contact, both of The Financial Relations Board, 415-986-1591
Web site: http://www.femrx.com