Federal Court Bars Axion Worldwide From
False Marketing, NASA Claims

March 29, 2007

In a March 29 order, North American Medical Corporation (“NAM”) won a
decisive ruling prohibiting its rival, Axiom Worldwide, several officers, and others
working with Axiom, from further use of false, misleading advertising and sales
tactics. Specifically, Judge Jack T. Camp of the United States District Court for
the Northern District of Georgia barred Axiom from continuing to represent that
its DRX 9000 device, or any portion or feature of it, is patented or FDA approved.
In addition, the Court enjoined Axiom from stating that there is any affiliation
between NASA and Axiom or between NASA and the DRX 9000.

Also, the Court prohibited Axiom from inappropriately using NAM’s “Accu-Spina”,  

“IDD Therapy” marks or any other NAM trademarks.  

NAM manufactures several competitive spinal therapy devices, including the flagship Accu-Spina¨ system, the only spinal therapy treatment device on permanent  exhibit  at  the International Museum of Surgical Science.   

Upon learning of the ruling, Gidgette Rubin, Senior Vice President of NAM stated:  

“We are very pleased with the court’s decision. North American Medical and its
distributors have been forced to spend much too much time and resources
combating blatantly false statements from Axiom, its officers, and its affiliates
selling Axiom’s competing products.

Now that the playing field has been leveled, we are very confident that doctors who want the finest device will see our Accu- SPINA as the obvious choice.”  

“This order helps protect the public from further deception. I feel sorry for all of those who purchased a DRX thinking that it was patented when it was not; not to mention for all of the patients who were treated on a DRX believing it was FDA approved, or designed by NASA, when it was not.”  

Ms. Rubin noted that not only did Axiom and its marketing allies, make statements that the Court found literally false, but Axiom offered its customers access to websites and advertising for their clinics which contained the same false statements. Some of these statements, and others, have caused Axiom customers to come under scrutiny by chiropractic boards in various states, as well as by the Monterey County, California, District Attorney, with some DRX 9000 users being charged substantial fines for false advertising.  

The FBI has also shown a recent interest in Axiom. On March 8, 2007, the FBI raided and searched Axiom’s offices, withholding disclosure of the reason for the raid.     

The suit seeks damages in connection with numerous claims, including false advertising, trademark and copyright infringement, libel, slander, theft of trade  secrets,  and  violations  of  the  Georgia  Racketeer  Influenced  Corrupt Organizations (RICO) Act. NAM intends to amend the complaint to add additional defendants and to seek damages for additional claims.   

Axiom, two of its officers (James Gibson and Nicholas Exarhos), as well as marketing consultant Ren Scott, have filed a notice of appeal concerning the preliminary injunction.