Filed pursuant to
Rule 424(b)(3)
Registration Statement
No.: 33-97722
Prospectus Supplement No. 7, dated July 15, 1996
(To Prospectus dated December 7, 1995,
as supplemented on January 17, February 20,
April 2, May 6, May 16 and May 23, 1996)
NEUROMEDICAL SYSTEMS, INC.
Common Stock
Par Value $.0001 Per Share
On July 15, 1996, Neuromedical Systems, Inc. (the "Company")
filed a lawsuit against Neopath, Inc. ("Neopath"), in the United
States District Court for the Southern District of New York,
seeking damages and injunctive relief for patent infringement,
false advertising, unfair competition, intentional interference
with business relations and damage to business reputation.
In the lawsuit, the Company alleges that Neopath willfully
misappropriated the Company's patented technology and used the
technology in Neopath's AutoPap 300 QC System. The Company also
alleges that Neopath falsely characterized and made misleading
comparisons to consumers and securities analysts between the
AutoPap 300 QC System and the Company's PAPNET (registered
trademark) Testing System.