Abbott and i-STAT Announce Long-Term Strategic Alliance; Deal Expected to Fuel Growth in Point-of-care Testing.

ABBOT PARK, Ill. and PRINCETON, N.J.--(BW HealthWire)--Aug. 4, 1998--Abbott Laboratories (NYSE:ABT) and i-STAT Corporation (NASDAQ:STAT) today announced the signing of an agreement providing for a long-term sales, marketing and research alliance. The agreement calls for Abbott to assume sales and marketing responsibility for i-STAT's products -- an innovative, hand-held, point-of-care blood analyzer with a broad test menu -- in the human health market, while collaborating in the development of new products leveraging both i-STAT's and Abbott's technology. Abbott will take a minority equity position in i-STAT, acquiring 2,000,000 shares at $11.35 per share.

"Abbott gives i-STAT the marketing and distribution strength we need to realize the full potential of our technology," says William P. Moffitt, president and chief executive officer of i-STAT. "This alliance will also help us achieve the economies we need to maximize the efficiency of our production process, making our products even more cost-efficient."

The i-STAT(R) System consists of a hand-held analyzer and a series of single-use, disposable cartridges which use i-STAT's innovative biosensor technology to perform specific combinations of commonly ordered blood tests. The system uses a simple, one-step procedure, producing results in two minutes or less. An infrared transmitter within the analyzer allows easy communication of test data to the health care provider's main information system. By providing accurate and reliable blood test results more quickly and more simply than most advanced laboratory equipment, the i-STAT system allows for faster treatment decisions, more efficient medicine and, ultimately, better outcomes for the patient.

Abbott expects that it will be able to continue the successful growth of i-STAT's products by building upon the increasingly strong position of the company's MediSense subsidiary in point-of-care testing. MediSense manufactures and markets blood glucose monitoring and data management products. Blood glucose testing is the single largest segment of the point-of-care testing market.

"This alliance gives Abbott the opportunity to offer our customers a total solution for point-of-care testing of glucose, blood gases and electrolytes," says Thomas D. Brown, Abbott senior vice president, diagnostic operations. "By combining the testing and data management capabilities of the MediSense and i-STAT products, hospitals will be able to integrate point-of-care test results in a single data network." This will provide faster data availability, better quality control, improved staff and patient management and more effective billing.

The $500 million U.S. hospital-based point-of-care testing market is among the fastest growing segments of the in vitro diagnostics market. "We're confident that we'll see continued strong overall growth in this segment," says Brown. "As the trend toward outpatient care accelerates, we'll see a greater percentage of admissions represented by patients needing critical care. Point-of-care testing is particularly appropriate in a critical care setting, where timely test results can substantially affect the quality of patient care."

i-STAT Corporation develops, manufactures and markets diagnostic products for blood analysis that provide health care professionals critical diagnostic information accurately and immediately at the point of patient care. Through the use of advanced semiconductor manufacturing technology, established principles of electrochemistry and state-of-the-art computer electronics and software, i-STAT developed the world's first hand-held automated blood analyzer capable of performing a panel of commonly ordered blood tests on two or three drops of blood in just two minutes at the patient's side.

Abbott Laboratories is a global, diversified health care company devoted to the discovery, development, manufacture and marketing of pharmaceutical, diagnostic, nutritional and hospital products. The company employs 54,000 people and markets its products in more that 130 countries. In 1997, the company's sales and net earnings were $11.9 billion and $2.1 billion, respectively, with basic earnings per share of $1.36, and diluted earnings per share of $1.34.

    CONTACT: i-STAT Corporation
              Roger Mason, 609/243-9300
              or
              Abbott Laboratories
              Joe Daab, 847/937-3357