ADAC Laboratories to be Exclusive Supplier of Nuclear Medicine Systems to SSM Health Care.

MILPITAS, Calif.--(BW HealthWire)--June 23, 1999--

ADAC Laboratories (Nasdaq: ADACE) today announced that it has signed an agreement with SSM Health Care to be the exclusive supplier of nuclear medicine systems to SSM Health Care's hospitals.

As part of the agreement, ADAC will provide SSM Health Care with service support for its nuclear medicine gamma cameras as well as those manufactured by other vendors.

SSM Health Care, headquartered in St. Louis, Missouri, is one of the largest Catholic healthcare systems in the country with some 5,000 affiliated physicians and 20,500 employees. The system owns, operates and manages 21 acute care hospitals and three nursing homes in four states: Missouri, Illinois, Wisconsin and Oklahoma.

"We selected ADAC because of its worldwide leadership in nuclear medicine and price offering," said James Dobbins, SSM Health Care's director of clinical engineering. "ADAC's products are technologically advanced, provide ease of use and are highly reliable. This agreement will allow us to provide high quality, state-of-the-art nuclear medicine imaging services to our patients and will enable SSM Health Care to achieve its goal of providing high quality, cost-effective health care to the patients we serve."

Gary Burbach, president of ADAC Medical Systems, stated: "We are pleased that SSM Health Care has selected ADAC as a supplier of nuclear medicine systems. We are committed to providing the necessary support to fulfill the nuclear medicine needs of SSM Health Care and its hospitals and look forward to a strong relationship in the years ahead."

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 and image management systems in North America. ADAC is headquartered in Milpitas, CA with its HealthCare Information Systems Division in Houston, TX.