Spectral MD Awarded BARDA Project BioShield Contract Valued at $149 Million for AI-Driven DeepView Burn Wound Imaging Technology DALLAS, Sept. 28, 20 23 - Spectral MD, Inc. ("SMD"), a subsidiary of Spectral AI, Inc. (Nas

MD Awarded BARDA Project BioShield Contract Valued at $149 Million for

DeepView Burn Wound Imaging Technology

- Spectral MD, Inc. ("SMD"), a

subsidiary of Spectral AI, Inc. (Nasdaq: MDAI; MDAIW) ("Spectral AI" or the "Company"), an artificial

intelligence (AI) company focused on medical diagnostics for faster and more accurate treatment decisions in wound care, today announced

it has been awarded a new contract valued at up to $149 million by the Biomedical Advanced Research and Development Authority (BARDA),

part of the Administration for Strategic Preparedness and Response (ASPR) within the U.S.

Department of Health and Human Services. The contract is for the advanced development of the DeepView System, the Company's

AI-driven burn wound imaging technology, to be used at emergency departments, trauma centers and burn centers, for both routine burn

care and as a medical countermeasure for use in burn mass casualty incidents (BMCI).

multi-year contract includes an initial award of nearly $55 million to support the clinical validation and FDA clearance of DeepView

for commercial marketing and distribution purposes, a major milestone that enables the technology to become a key component of the U.S.

government's BMCI preparedness efforts. The initial

award places up to 30 DeepView devices at various burn centers and emergency rooms

to support the clinical validation study and will transition to being used in routine care upon FDA clearance. The

contract also includes options with an additional total value of approximately $95 million and can be exercised for additional

product development, procurement, and deployment of

DeepView at U.S. emergency departments, trauma centers and burn centers in a phased approach. These deployments will enable SMD

to conduct health economic and outcome research to support broader clinical adoption of the DeepView System.

in 2013 and 2019, SMD was awarded BARDA contracts totaling $123 million, of which $101 million has been committed to date. Together with

this new contract, it brings the total potential support from BARDA to nearly $251 million. This new contract represents the largest

contract ever awarded to SMD.

appreciate that our DeepView platform has been selected to address a critical need in preparing our country for possible BMCI events,"

said Wensheng Fan, the Company's CEO. "This is a significant contract award that enables us to accelerate the late-stage

clinical development and commercialization of our DeepView System. We are most grateful to BARDA for enabling us to help physicians

and their burn patients who will benefit from the use of DeepView . For the first time, there will be an accurate and objective solution

in burn wound healing assessment to guide treatment. Spectral MD is committed to the development of impactful medical technologies, and

we will aim to bring DeepView to market as quickly as possible."

Carter, M.D., the Company's Chief Medical Consultant, added, "The current standard of care for burn wound assessment that

is crucial in determining next-step treatment relies largely on the clinical judgement of physicians. However, diagnostic accuracy can

be as low as 50%. This unmet clinical need is dramatically magnified in the event of a BMCI, where the ability to triage burn patients

rapidly and properly would be crucial in allocating valuable resources and managing the surgical burden. The DeepView technology

represents a new paradigm in the assessment of burn wounds and can provide meaningful clinical guidance to physicians in their diagnosis

and treatment recommendations."

work supports BARDA's mission to identify medical countermeasures which help counter the effects of a BMCI and address the current

limitations within the United States' burn care infrastructure. According to the American Burn Association, 1.1 million Americans

suffer from burn injuries each year, with 500,000 presenting to emergency departments, and 40,000 requiring hospitalization. In contrast

to this demand, only two percent of U.S. hospitals have burn centers, and there are only about 250 burn surgeons in the United States.

bridge this gap in care, the Company's DeepView

System, which received Breakthrough Device Designation from the FDA in 2017 for its burn indication,

integrates proprietary imaging technology and AI-enabled algorithms to see deep below the surface of the skin to distinguish between

healthy and damaged tissue. By seeing what the human eye cannot, DeepView delivers

a binary wound healing prediction to assist physicians in determining whether a burn will heal on its own or if surgery is required.

Studies with DeepView have demonstrated a burn diagnostic accuracy rate of 92% on Day 1, well above the estimated >50% accuracy

of non-specialists and even the estimated 70% accuracy of burn specialist assessments.

project is being supported in whole or in part with federal funds from the Department of Health and Human Services; Administration for

Strategic Preparedness and Response; BARDA, under contract number 75A50123C00049.

The findings and conclusions have not been formally disseminated by the Department of Health and Human Services and should not be construed

to represent any agency determination or policy.

MD, Inc., is a subsidiary of Spectral AI, Inc., a Dallas-based predictive AI company focused on medical diagnostics for faster and more

accurate treatment decisions in wound care, with initial applications involving patients with burns and diabetic foot ulcers. The Company

is working to revolutionize the management of wound care by "Seeing the Unknown " with its DeepView

System. DeepView is a predictive diagnostic device that offers clinicians an objective and immediate assessment of a wound's

healing potential prior to treatment or other medical intervention. With algorithm-driven results and a goal of substantially exceeding

the current standard of care in the future, DeepView is expected to provide faster and more accurate treatment insight towards value

care by improving patient outcomes and reducing healthcare costs. For more information about DeepView , visit www.spectral-ai.com.

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