ADAC Laboratories Signs Exclusive Vendor Agreement With Eastern Isotopes for Radiopharmaceutical Products.

MILPITAS, Calif.--(BW HealthWire)--Nov. 2, 1999--

Arrangement Will Benefit ADAC MCD/AC(TM) and C-PET(TM) Customers

ADAC Laboratories (Nasdaq:ADAC) today announced that it has signed an exclusive vendor agreement with Eastern Isotopes, Inc., a provider of radiopharmaceuticals for positron emission tomography (PET) procedures. Under this agreement, ADAC's MCD/AC and C-PET users will have access to dedicated 5.5 millicurie (mCi) doses of fluorodeoxyglucose (FDG) for their positron imaging needs. This represents a new exclusive product offering tailored to ADAC products which, unlike some competitive products, do not require 10mCi of FDG for diagnostic imaging. Eastern Isotopes will supply the doses at a substantial discount over the current available prices.

"We are very pleased to have developed this relationship with Eastern Isotopes," said Gary Burbach, president of ADAC's Medical Systems division. "This agreement will enable our customers to perform PET studies at a significantly reduced operating cost. It is our expectation that this will accelerate the expansion of PET imaging and make optimal use of ADAC's PET technologies."

"This is an exciting partnership for us," said John Zehner, president of Eastern Isotopes. "We believe the market for PET imaging is primed for exceptional growth. This will give us the opportunity to help advance PET technology by providing exactly what ADAC customers need, at the best possible prices."

PET, or positron emission tomography, is an effective imaging technology used to diagnose and monitor certain cancers, cardiac diseases and brain disorders. It is an accurate, non-invasive method of determining malignancy and one of the few such methods available to determine whether a cancer has metastasized or spread beyond the original tumor site. After years of compelling clinical research, PET scans have now begun to find broader clinical acceptance.

According to Frost & Sullivan, worldwide sales of PET scanners reached $86.4 million in 1998 and are expected to reach more than $135 million in 2000. Based on Department of Health and Human Services projections of cancer incidence rates and PET applicability, ADAC believes that the market could exceed $300 million by 2003.

ADAC recently acquired UGM Medical Systems, a leading developer and manufacturer of PET equipment. ADAC and UGM co-developed MCDPET(TM), the first coincidence detection technology, which enables ADAC's nuclear medicine systems to perform PET imaging. In addition, ADAC and UGM are established leaders in the burgeoning market for clinical PET imaging.

Eastern Isotopes is headquartered in Sterling, Virginia. The company was formed in 1995 as a distributor of single photon emission computed tomography (SPECT) pharmaceuticals. In 1998, the company expanded into the production of high energy tracers, specifically FDG, to meet the growing need for PET radiopharmaceuticals. These products are used for therapy, monitoring of therapeutic response and detection of disease states in oncology, cardiology and neurology.

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, California with its HealthCare Information Systems Division based in Houston, Texas.