ADAC Laboratories and Hitachi Medical Corporation Sign Nuclear Medicine Systems Distribution Agreement; Significantly Expands ADAC's Market Opportunity in Japan.

MILPITAS, Calif.--(BW HealthWire)--April 30, 1999--

ADAC Laboratories (Nasdaq:ADAC), and Hitachi Medical Corporation (HMC) today announced that they have entered into an agreement whereby HMC will become ADAC's exclusive distributor of nuclear medicine systems in Japan.

The distribution agreement includes ADAC's broad line of nuclear medicine gamma cameras, related computer systems and application software. HMC will market ADAC's dual head cameras including Forte and Vertex V60. In addition, HMC will market ADAC's advanced imaging technologies including molecular coincidence detection (MCD PET ), molecular coincidence detection with attenuation correction (MCD/AC PET) and Vantage ExSPECT. HMC will also assume service responsibility for ADAC's prestigious customer base in Japan, as well as install, provide warranty and field service for new cameras and provide training to customers.

In recognizing the potential of a strong cooperative relationship, ADAC and HMC are exploring nuclear medicine technology collaboration and HMC's distribution of other ADAC product lines.

"ADAC is a recognized world leader in nuclear medicine technology and we believe their excellent product line will enable us to establish a premium market in Japan," said Yutaka Takuma, HMC president.

"Japan is the world's second largest market for nuclear medicine systems, representing a market opportunity of approximately $60 million (U.S.) per year. ADAC is extremely pleased to partner with such a major force in medical diagnostic imaging as Hitachi," said R. Andrew Eckert, ADAC chief executive officer. "With Hitachi as our partner, we are confident that our nuclear medicine products will gain significant entry into Japan."

HMC is one of the group of companies of Hitachi, Ltd. and a worldwide leader in the development, manufacture, distribution and service of a wide variety of diagnostic imaging systems. Headquartered in Tokyo, Japan, HMC reported revenues of more than $900 million (U.S.) in 1998. HMC's parent, Hitachi, Ltd., is Japan's largest diversified developer and manufacturer of electronic and electrical products. Hitachi, Ltd. reported revenues of $70 billion (U.S.) in fiscal 1998.

ADAC Laboratories is the world market share leader in nuclear medicine and radiation therapy planning systems and a leading supplier of radiology and cardiology information systems in North America. In 1996, ADAC became the first healthcare manufacturer to receive the Malcolm Baldrige National Quality Award. ADAC is headquartered in Milpitas, CA with its HealthCare Information Systems Division in Houston, TX.

This press release contains forward-looking statements, including statements concerning future sales in Japan. Factors that could cause actual results to differ materially from those contained in such forward-looking statements include the existence of significant competition in each of the markets in which ADAC conducts business, including international markets, ADAC's dependence on successfully developing, introducing and commercializing new products and developing enhancements to existing products, and a number of factors that can introduce variability in ADAC's operating results, including the timing of product orders, shipments, and installations. Further information on these and other factors is described in the "Business Considerations" section in the "Business Considerations" section of ADAC's most recent Form 10-K for fiscal year ended September 27, 1998, including subsections headed "Competition", "Dependence on New Products and Product Enhancements" and "Future Operating Results." All forward-looking statements are based on information available to ADAC on the date hereof, and ADAC assumes no obligation to update such statements.