ADAC Receives Marketing Approvals in Japan; ADAC's Market Opportunities Expand in Nuclear Medicine's Third Largest Market.

MILPITAS, Calif.--(BUSINESS WIRE)--Sept. 23, 1996--ADAC Laboratories (NASDAQ:ADAC) and Sumitomo Metal Industries, ADAC's exclusive representative in Japan, announced today that the Japanese Ministry of Health and Welfare (JMHW) has approved their application to market ADAC's VERTEX(TM) PLUS, SOLUS(TM), and CARDIO(TM) nuclear imaging systems in Japan.

In addition, the JMHW granted approval for ADAC's Molecular Coincidence Detection (MCD(TM)), which is used in the detection and staging of cancer treatment. These marketing approvals allow ADAC to market a broad product line of nuclear imaging systems in Japan.

The VERTEX PLUS, SOLUS, and CARDIO are the latest additions to ADAC's leading dual-head digital nuclear imaging systems. Featuring advanced digital robotics and wide open-ACCESS(TM) ring gantry design, these new systems offer the highest level of clinical performance, imaging precision, and system reliability.

MCD enables VERTEX and SOLUS gamma cameras to perform both single photon emission computerized tomography (SPECT) and coincidence imaging procedures. Coincidence imaging, previously limited to costly dedicated positron emission tomography (PET) imaging systems, offers valuable diagnostic information for a number of oncologic, cardiac and neurological conditions. MCD is expected to provide a significant improvement in the clinical management of the most frequently diagnosed cancers, such as lung, colon, breast and neck. ADAC's MCD is the first coincidence imaging system approved by the JMHW. ADAC currently is conducting multi-center clinical trials to document the clinical efficacy of MCD. The Company expects the trials to verify MCD's significant cost advantages in managing cancer patients relative to conventional diagnostic imaging techniques.

Andy Eckert, President of ADAC Medical Systems stated, "The approvals received from the Japanese government provide ADAC the opportunity to market a full range of our superior nuclear medicine equipment in Japan, the third largest market in the world. We are particularly excited about the approval for MCD which will further advance ADAC's worldwide technological leadership. We expect ADAC's market share will continue to grow in Japan based on the introduction of these new products."

ADAC Laboratories is the world market share leader in nuclear medicine and a leading supplier of radiology and laboratory information systems in North America. For the third consecutive year, ADAC has received a site visit for the prestigious Malcolm Baldrige National Quality Award. The company headquarters is in Milpitas.

CONTACT: ADAC Laboratories

Kathleen Call, 408/321-9100