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CRH Medical Announces Clinical Sales Program to Support Long-Term Revenue Growth and Profitability

VANCOUVER, B.C. –September 4, 2012 – CRH Medical Corporation (TSX: CRH) (OTCQX: CRMMF), a North American medical company focussed on providing physicians with innovative products for the treatment of gastrointestinal diseases, announced the introduction of a Clinical Sales Support Program with Magellan Medical Technology Consultants Inc. to support the Company’s long-term revenue growth and profitability.

Magellan will work with CRH Medical to create a clinical, sales, and marketing team. This team will work to both increase the adoption of the CRH O’Regan System within practices already trained by the Company and to introduce the technology to practices not yet trained.

The O’Regan System is a single use, disposable hemorrhoid treatment that is safe and highly effective in treating hemorrhoid grades I – IV.  The Company’s goal is to establish the O’Regan System as the standard of care for hemorrhoid treatment. In addition to the product, CRH Medical delivers clinical, marketing and operational support directly to its partner physicians.

Magellan has over 15 years of experience in the industry and has formed considerable relationships with many medical companies such as Medtronic, Johnson & Johnson and Genentech. Magellan’s expertise in clinical sales support, strategic planning, and sales strategies will benefit CRH as they launch this initiative.

“We believe it’s the right time to leverage the capabilities of an organization such as Magellan to increase revenues and grow market share for the O’Regan System,” said Edward Wright, Chief Executive Officer of CRH Medical. “Over the past several quarters, we have significantly raised awareness about the safety and efficacy of the O’Regan System, which has resulted in a loyal and growing customer base. We have been able to grow revenues from zero to a current annual run rate of approximately $7.0 million, all without a field sales and marketing team. We anticipate that the launch of this program will ultimately help us increase revenue from our current customers, as well as garner additional customers. We expect net income to remain strong during the introduction of this program, even though we will increase our expenses over the next several quarters as we invest in this and other long term initiatives. ”

Magellan has initially been contracted to hire experienced clinical, sales, and marketing specialists in three geographical markets in the United States where CRH Medical has a significant number of trained physicians.

The agreement with Magellan will provide CRH Medical with clinical, sales, and marketing specialists through at least the end of the first quarter of 2013, at which point CRH Medical has the option to terminate the contract, continue with the current program, or expand the program to include additional markets.

About Magellan Medical Technology Consultants

Magellan Medical Technology Consultants is a full-service consulting organization focused exclusively on the medical technology industry. Magellan assist clients with bringing new products and therapies to market, finding creative ways to enhance revenue and earnings, and most importantly, impact patient care by delivering superior medical technology solutions to physicians. 

About CRH Medical Corporation:

CRH Medical Corporation specializes in the distribution of innovative medical products directly to physicians, particularly those in the gastroenterologist community. The Company’s lead product, the CRH O’Regan System, is a single use, disposable hemorrhoid treatment that is safe and highly effective in treating hemorrhoid grades I – IV. The O’Regan System is rapidly emerging as the standard of care with gastroenterologists who treat hemorrhoids. In addition to the product, CRH Medical delivers clinical, marketing and operational support directly to its partner physicians. CRH utilizes its web-based platform to connect doctors with patients as well as to educate its ever increasing install base of physicians.

For more information about CRH Medical Corporation, please contact:

Edward Wright, Chief Executive Officer

CRH Medical Corporation

604.633.1440 x1008

ewright@crhmedcorp.com

or

Adam Peeler, Media and Investor Relations

TMX Equicom

416.815.0700 x 225

apeeler@equicomgroup.com

Forward looking statements:

The information in this news release contains so-called “forward-looking” statements. These include statements regarding CRH Medical’s expectations and plans relating to its business, statements about CRH Medical’s expectations, beliefs, intentions or strategies for the future, which may be indicated by words or phrases such as “anticipate”, “expect”, “intend”, “plan”, “will”, “we believe”, “CRH Medical believes”, “management believes”, and similar language. All forward-looking statements are based on CRH Medical’s current expectations and are subject to risks and uncertainties and to assumptions made. Assumptions include: (i) that the growth of CRH’s product sales will continue in a consistent manner; (ii) CRH’s costs will not escalate significantly; and (iii) CRH does not incur any extraordinary costs.

Important risk factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include: (i) we may not continue to attract Gastroenterologists and other licensed providers to purchase and use the CRH O’Regan System; (ii) the policies of health insurance carriers in the United States may affect the amount of revenue the Company receives; (iii) changes in United States federal or state laws, rules, and regulations; (iv) our senior management has been key to our growth, and we may be adversely affected if we lose any member of our senior management; (v) economic dependence on suppliers and our contract manufacturer; (vi) changes in the industry and the economy may affect the Company’s business; (vii) evolving regulation of corporate governance and public disclosure may result in additional corporate expenses; (viii) we may be subject to competition and technological risk which may impact the price and amount of product we can sell; (ix) we may be subject to product liability which may adversely affect our operations; (x) we may need to raise additional capital to fund future operations; (xi) our business may be impacted by health care reform in the United States; (xii) we may not have the expertise required to expand internationally. As a single product company, any adverse event directly or indirectly related to the CRH O’Regan System will have a material impact on the Company’s financial performance. CRH Medical bases its forward-looking statements on information currently available to it, and assumes no obligation to update them, except as required by law.