American Physician Partners, Inc. Signs Two Multi-Modality Purchase Agreements With Siemens Medical Systems.

ISELIN, N.J.--(BW HealthWire)--Dec. 16, 1998--

Siemens Nuclear Medicine Group Sole Supplier for Nuclear Imaging

Technology

Siemens Medical Systems, Inc. and American Physician Partners, Inc. (Nasdaq:APPM), a radiology services company, recently announced the signing of two major purchase agreements for advanced Siemens diagnostic imaging and radiation therapy technology.

The first is a sole source agreement with Siemens Nuclear Medicine Group to supply nuclear medicine imaging technology. Valued at more than $9 million, the contract secures for APPM's affiliated radiology practices significant economies of scale on Siemens dual-head, E.CAM single photon emission tomography (SPECT) and ECAT positron emission tomography (PET) cameras.

A dual source agreement valued at more than $30 million was also signed, naming Siemens as one of two major medical equipment manufacturers who will supply, with the exception of ultrasound and R & F X-ray equipment, all other medical imaging and therapeutic radiological modalities.

According to APPM's Chairman, President and CEO Mark L. Wager, "the agreement with Siemens is a good example of how APPI systematically manages the capital equipment procurement process for its member facilities so that they can obtain state-of-the-art diagnostic imaging technology at the best value."

"We are privileged to have signed a three-year national agreement with APPM for our advanced technology products for nuclear medicine, imaging and oncology care," said Tom McCausland, President and CEO, Siemens Medical Systems. "This agreement provides value to both our organizations as we face the challenges of today's managed healthcare environment."

Based in Dallas, Texas, APPI provides radiology services through affiliated radiology practices with a focus on the development, consolidation and management of integrated radiology and imaging center networks. The company's business strategy is to develop integrated networks of radiology groups and imaging centers that can provide wide geographic coverage and subspecialty expertise. APPM provides management services to 10 radiology practices consisting of 258 physicians, 50 hospital relationships and 79 diagnostic imaging centers in California, Florida, Kansas, Maryland, New York,Texas, Virginia and Washington, D.C.

Siemens Medical Systems, Inc., located in Iselin, New Jersey, is the U.S. affiliate of the Medical Engineering Group of Siemens AG, a leading supplier to healthcare providers worldwide. The Nuclear Medicine Group based in Hoffman Estates, Illinois is the world-wide center of competence for nuclear medicine products. Siemens Medical Engineering, Erlangen, Germany, employs about 18,300 worldwide and reported sales of $4.2 billion (DM 7.5 billion) and orders of $4.5 billion (DM 8 billion) in fiscal 1997/98.