Bracco Finalizes Acquisition of E-Z-EM, Inc.

Merger of Bracco Diagnostics Inc. (BDI) with E-Z-EM enhances Bracco Group's leadership in Diagnostic Imaging

PRINCETON, N.J. & MILAN, Italy -- The Bracco Group today finalized the acquisition of E-Z-EM, Inc., a major manufacturer of contrast media and medical devices for gastrointestinal (GI) radiology. The acquisition, which was announced on October 30, 2007, is valued at more than $241 million.

E-Z-EM's abdominal contrast agent business, along with the healthcare decontamination and the GI device businesses, will be integrated into Bracco Diagnostics Inc. (BDI), the US-based subsidiary of Bracco Imaging S.p.A. and part of the Bracco Group. The E-Z-EM contrast delivery, contrast data management, and point of care testing system businesses will move to ACIST Medical Systems, also part of the Bracco Group. BDI and ACIST have executed a co-marketing agreement to support the sales of E-Z-EM's injection systems and the EZ Chem[TM] Blood Analyzer.

Bracco is committed to continued innovation and growth in the evolving field of diagnostic imaging informatics and patient management. This acquisition helps the Group to broaden and deepen its expertise.

E-Z-EM is a leader in the US and worldwide. As Diana Bracco, Chairman and CEO of the Bracco Group, points out: "Bracco's acquisition of E-Z-EM comes shortly after the kick-off on January 1, 2008 of Bracco's direct presence in some of the main European countries such as Germany, France and the Benelux, replacing the previous management through joint venture with Altana Pharma.

"These are two fundamental milestones in the Group's globalization strategy," Diana Bracco continues, "which are both going in the direction we have always hoped: fully integrating our activities in Italy and abroad with our culture, which is based on constant investments in Research & Development, our commitment to improving health and the quality of life, and social responsibility."

Bracco Imaging operates in over 80 markets worldwide, providing imaging agents and solutions that promote improved visualization, better patient care and cost-effectiveness for use in X-ray/Computed Tomography (CT), Nuclear Medicine1, Magnetic Resonance Imaging (MRI) and Contrast-Enhanced Ultrasound procedures2. ACIST Medical Systems is a world leader in contrast delivery solutions for the imaging field and a leading clinical and technological innovator in automated contrast delivery systems.

E-Z-EM is one of the most recognized brands among Radiologists and GI physicians across several markets including CT Contrast, Delivery Systems, Point of Care Chemistry Products, Workflow Solutions, and Virtual Colonoscopy, X-ray Fluoroscopy, Dysphasia, and Gastroenterology Devices.

E-Z-EM also has pharmaceutical contract manufacturing capability, including oral, topical and liquid formulations. Its Healthcare Decontamination business supplies to both the US DoD and NATO countries RSDL (Reactive Skin Decontamination Lotion), which is now used for personnel chemical warfare decontamination.

"We believe that adding E-Z-EM's portfolio, innovation and technical expertise creates distinctive and significant benefits for our customers," said Roberto Rettani, CEO of Bracco Imaging. "We're enhancing our ability to develop and offer a more comprehensive and integrated range of products and services with the potential of delivering a total patient management solution. This is good for our customers and good for our continued growth as a company."

About Bracco Group (www.bracco.com)

Bracco Imaging S.p.A. is one of the world leading companies in the imaging agent business, with products sold in over 80 countries. Bracco Diagnostics, Inc. is the U.S. subsidiary of Bracco Imaging which is headquartered in Milan, Italy.

Bracco Imaging is a subsidiary of Bracco S.p.A, holding company of the Bracco Group, which also markets Ethical and OTC pharmaceutical products in Italy as well as Advanced Medical Technology systems on a world wide basis. Furthermore, the Bracco Group offers diagnosis services through the Milan-based Centro Diagnostico Italiano (Italian Diagnostic Center).

About ACIST (www.acist.com)

ACIST, an affiliate of the Bracco Group, is a world leader in contrast delivery solutions for the imaging field, dedicated to advancing the art of angiography through research and development of new products and technologies - supporting today's needs and anticipating those of tomorrow. More than four million people around the world have had cardiovascular angiographic procedures using an ACIST system, now at over 1 million annually - and growing. ACIST systems are widely proven in the global health care arena, with clinical usage in over 30 countries and in many world-renowned centers, as well as in community hospitals and university settings.

About E-Z-EM (www. ezem.com)

Headquartered in Lake Success, New York, and named to Forbes magazine's prestigious 2007 List of Best Small Companies in America, E-Z-EM is a recognized leader in manufacturing products for imaging the gastrointestinal (GI) tract. From the first disposable barium enema administration kit introduced in 1962, to today's advanced CT and VC products, speech pathology, GI devices and healthcare decontaminants, E-Z-EM continues to develop imaging solutions that provide superior methodology, procedural simplicity and added convenience for physicians and their patients.

The company is the developer of VoLumen([R]), a patent-pending low density barium sulfate suspension for use as an oral contrast in Multidetector CT and Positron Emission Tomography (PET) studies. It also offers Empower([R]), the first family of CT injectors on the market with patented technology to help detect contrast. extravasation and a complete product set for virtual colonoscopy practitioners, comprising virtual colonoscopy hardware, software, nutritional prep kits and bowel cleaners, tagging agents and a carbon dioxide colon insufflation system.

1 Products for Nuclear Medicine are currently marketed only in North America.

2 Products for Contrast-Enhanced Ultrasound are currently marketed only outside the United States.