Analogic Acquires Minority Interest in PhotoDetection Systems.

Business Editors/Health/Medical Writers

PEABODY, Mass.--(BUSINESS WIRE)--May 22, 2003

Analogic Corporation (NASDAQ: ALOG) announced today that it has acquired a minority interest in PhotoDetection Systems Inc. of Acton, Massachusetts. Analogic also obtained an exclusive technology license to use PhotoDetection System's proprietary Positron Emission Tomography (PET) technology within specific markets.

Privately held PhotoDetection Systems, Inc. (PDS), founded at Boston University's Photonics Center in 1998, has developed proprietary detection systems for high-performance Positron Emission Tomography (PET), a rapidly growing medical diagnostic imaging modality. PET scanning is an excellent tool in the diagnosis and management of cancer, specifically for detecting early-stage tumors and determining tissue characteristics before and after treatment.

Bernard M. Gordon, Chairman and CEO of Analogic, observed, "We see significant opportunities for both companies in combining our advanced technologies to serve the newly emerging application of hybrid PET/CT systems, one of the most advanced medical imaging technologies available today. PhotoDetection has developed a unique, proprietary high-performance, low-cost PET detection system. Analogic is a recognized leader in the development of high-performance low-cost Computed Tomography (CT) systems. Combining our respective proprietary technologies, Analogic and PDS have the ability to provide superior, innovative PET/CT systems for our Original Equipment Manufacturer (OEM) customers."

"Our technology dramatically improves the sensitivity of PET images at a significantly lower cost," notes Paul Domigan, President and CEO of PDS. "Analogic's CT imaging technology offers fine anatomical resolution. Combining our technologies means that low-cost PET/CT products will enable more clinicians to detect smaller lesions earlier, thereby improving the survival rates of many patients."

"PET/CT is an emerging medical imaging field that offers a major opportunity for the Company," commented Analogic President, John W. Wood Jr. "The key to PET/CT is its ability to combine the strengths of both PET and CT to offer a higher level of diagnostic power, improving cancer imaging by identifying diseases not perceptible in the separate PET or CT scan. Not only does PET/CT provide superior images; it is able to do so very quickly, significantly reducing the time and therefore the cost for scanning the patient, a benefit for patient and clinic alike. PDS' and Analogic's proprietary technology can also reduce the cost of purchasing and operating PET/CT systems, making the benefits of these advanced hybrid systems more readily available to clinicians and patients."

Terms of the investment were not disclosed.

Analogic Corporation is a leading designer and manufacturer of advanced health and security systems and subsystems sold primarily to Original Equipment Manufacturers (OEMs). The Company is recognized worldwide for advancing the state of the art in Computed Tomography (CT), Digital Radiography (DR), Ultrasound, Magnetic Resonance Imaging (MRI), Patient Monitoring, Cardiovascular Information Management, and Embedded Multicomputing.