ADAC Introduces Mobile PET Imaging System; C-PET-MX Extends Line of Positron Imaging Solutions.

MILPITAS, Calif.--(BW HealthWire)--Sept. 14, 1999--

ADAC Laboratories (Nasdaq:ADAC) today announced the introduction of the newest product in its PET imaging line, C-PET(TM)-MX, a dedicated positron emission tomography (PET) scanner for use in mobile coaches.

"With recent decisions by the Health Care Financing Administration (HCFA) to expand Medicare reimbursement for PET scans in a number of indications, clinical acceptance of PET is growing rapidly," said Mohamed Elmandjra, vice president of marketing of ADAC's Medical Systems division. "C-PET-MX will provide a greater number of hospitals access to PET through the use of mobile coaches. We believe the mobile segment is becoming an important part of the PET market and represents a significant opportunity for growth."

C-PET-MX is especially well suited for mobile configurations due to its unique and simple mechanical design. ADAC believes this is an important differentiating factor of the C-PET-MX for mobile users.

"The significance of C-PET-MX is that it offers a product optimized for clinical use and economic productivity to a segment where patient applications and cost effectiveness are critical," said Elmandjra.

C-PET(TM)-MX is based on Curved Crystal Technology (CCT(TM)). CCT(TM) is the same technology underlying C-PET(TM), the clinically optimized PET scanner introduced by ADAC in mid-1998. It is designed to decrease patient exam time significantly while providing enhanced diagnostic capability.

ADAC Laboratories is the world market share leader in nuclear medicine and radiation therapy planning systems and a technology leader in providing hospital information systems, Picture Archiving Communications Systems (PACS) and clinical workflow solutions in North America. ADAC is headquartered in Milpitas, Calif. with its HealthCare Information Systems Division based in Houston, Texas.

This news release contains forward-looking statements, including statements concerning the future market for PET systems and the Company's product leadership. Factors that could materially undermine such forward-looking statements include, but are not limited to, the existence of significant competition in the PET market; risks related to obtaining and maintaining Medicare and third party payor reimbursement; and risks related to intellectual property, including the Company's continued ability to operate without infringing the proprietary rights of third parties. Further information on these and other factors is provided in the "Business Considerations" section of the Company's most recent Form 10-K for the fiscal year ended September 27, 1998, including subsections headed "Competition", "Health Care Reform, Reimbursement and Pricing Pressure", and "Intellectual Property Rights". All forward-looking statements are based on information available to the Company on the date hereof, and the Company assumes no obligation to update such statements.