ADAC Laboratories Introduces SmartSim, a Fully Integrated 3D CT Simulation and Radiation Therapy Planning Package.

Business Editors/Health & Medical Writers

MILPITAS, Calif.--(BW HealthWire)--April 18, 2000

ADAC Laboratories (Nasdaq:ADAC) today introduced SmartSim(TM), a fully integrated CT (computed tomography) simulation and radiation therapy planning package that expedites the radiation treatment planning process.

A complete SmartSim integrated package includes a SmartSim CT Simulation workstation, based on ADAC's Pinnacle3(TM) radiation therapy planning system, optional three-dimensional (3D) dose planning capabilities, and a refurbished CT scanner from ADAC's award-winning refurbishing process(1). Alternatively, the SmartSim CT workstation can be interfaced via DICOM, the industry standard imaging interface, to an existing CT scanner.

"With SmartSim, ADAC is entering the largely untapped market for CT simulation products," said Dave Crussell, vice president and general manager of ADAC's Radiation Therapy Products division. "We expect the worldwide market for CT simulation products to reach approximately $100 million this year as radiation oncologists increasingly adopt this technology in place of the conventional method of x-ray simulation. By leveraging our large customer base of Pinnacle3 users and offering them our integrated CT simulation solution, we believe we are well-positioned to compete in this market."

The SmartSim software reconstructs data gathered from CT scans into 3D images and DRRs (digitally reconstructed radiographs), allowing radiation oncologists to more accurately pinpoint the location, size, and shape of tumors. Clinicians are then able to determine optimal radiation beam placements to treat cancerous cells while minimizing the risk to nearby healthy tissue.

SmartSim uses a single database for simulation and planning activities, thereby eliminating the need to transfer data among separate components and allowing physicians to perform all of their simulation and planning from a single workstation. In addition, SmartSim's optional dose package combines the dose accuracy found on ADAC's Pinnacle3 radiation therapy planning system on a single platform. These features streamline the workflow in radiation therapy departments and increase clinicians' efficiency.

Advanced Radiation Oncology Services (AROS) of Nyack, New York, is a full-service radiation oncology center that has been testing and has now purchased a full SmartSim package with an ADAC refurbished CT scanner. Dr. James K. Gerstley, AROS' director of radiation oncology, said, "In keeping with our charter to offer our patients the latest in treatment techniques, we selected ADAC's SmartSim because it is the most sophisticated system available today. The system fills all our needs for virtual simulation. It is user-friendly and makes 3D conformal radiation therapy much easier to set up."

Radiation Medicine Specialists of North East, PA, a freestanding radiation oncology center, has also selected ADAC's complete SmartSim package, including an ADAC refurbished helical CT scanner. Dr. Norman Schulman, medical director, said, "We selected a full ADAC package because SmartSim offers us improved accuracy and efficiency over our old system, which contained a separate CT simulation and 3D planning workstation. By incorporating dose evaluation into our simulation process, we have reduced the overall time and manpower necessary to complete the simulation and planning process."

Patty Root, ADAC's CT Simulator senior product manager, commented, "CT simulation is a vital component in today's radiation oncology departments. SmartSim, together with our Pinnacle3 dose algorithm, seamlessly integrates the CT simulation and planning processes. The SmartSim package can be custom-configured to meet the needs of any radiation therapy department. By offering a turnkey solution including a high quality refurbished scanner, we provide our customers with state-of-the-art simulation and planning software technology for a maximum return on investment."

Shipments of SmartSim will begin in April.

About ADAC Laboratories

ADAC Laboratories is the world market-share leader in nuclear medicine and radiation therapy planning systems, and a technology leader in providing clinical workflow solutions, management information and knowledge systems to healthcare organizations in North America. ADAC is headquartered in Milpitas, CA, and its HealthCare Information Systems Division is located in Houston, TX. Additional information about ADAC can be found on its web site at www.adaclabs.com.

This press release contains forward-looking statements, including statements regarding the company's product leadership and the potential market for the company's products. Factors that could cause actual results to differ materially from those in such forward-looking statements include, but are not limited to, the existence of significant competition in the markets served by the company; the company's dependence on successfully developing and marketing new products; and other factors as described in the "Business Considerations" section of the company's most recent Forms 10-K and 10-Q. 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.

(1) Frost & Sullivan, an international marketing consulting company, awarded its 1998 Market Engineering Product Line and Customer Focus Strategy Award to ADAC. Frost & Sullivan awards this to the company within the refurbished diagnostic imaging market that demonstrates "the greatest leadership to better serve its customers."

Note to Editors: SmartSim and Pinnacle3 are trademarks of ADAC Laboratories.