Phase imaging company, Iatia Limited (ASX:IAT) has successfully completed the second stage of its laboratory test work on the new auto-refractor prototype.

The prototype which will fully integrate the QPI technology has been developed to Iatia's design in partnership with a leading international ophthalmology and optometry instrument manufacturer (identity is subject of confidentiality agreement).

The test work has confirmed the design principle and yielded excellent results. Iatia and its partner are very pleased with the progress.

The next step in the product's development is for the manufacturer to supply a camera suitable for both mass production and the capture of the high quality images needed to produce QPI power-maps of the eye.

Iatia will then verify the camera's performance. Once verification is complete the prototype will be delivered back to the manufacturer for final testing on human eyes prior to production.

To support the QPI integration into this revolutionary product, Iatia is also developing a new software program. The program will enable ophthalmologists and optometrists to dramatically enhance assessment of eyes by producing far better maps of the vision quality of the eye and ultimately prescribe far more accurate lenses. The measurement requires no physical contact with the transparent optics of the eye and is another example of QPI "seeing the invisible".

It is envisaged that the new auto-refractor will be ready for its commercial product launch in November 2007 at the annual American Academy of Ophthalmology Conference in the USA.

Iatia would generate annual sales of $1.9 million from the sale of its software in this product.

This product is viewed as being the first of a suite of up to five products developed to utilise the power of QPI for ophthalmology and optometry which is a rich and rapidly growing market.