Conductus to develop MRI coils with Siemens AG; New subsystem will be targeted at increasing the sensitivity of low-field MRI systems.

SUNNYVALE, Calif.--(BUSINESS WIRE)--Jan. 11, 1996--Conductus, Inc., a pioneer in high-temperature superconductor technology, and Siemens AG Medical Engineering Group, a leading manufacturer of magnetic resonance imaging (MRI) equipment, today announced a joint agreement to develop superconducting receivers for the Siemens Open 0.2T MRI system.

The goal of the Conductus/Siemens project is to develop receiver subsystems utilizing Conductus' superconductor technology to enhance the performance of Siemens' present and future MRI scanners. These subsystems will include superconducting receiver coils, associated electronics and cryogenic cooling.

MRI is an increasingly important medical imaging technique, with hundreds of new systems installed in hospitals and medical offices each year. MRI provides physicians with images of the human body that are superior to many other techniques. MRI scanners which use high-field-strength magnets (field strengths of 1 Tesla and more) have become well-established for a number of diagnostic applications and have become the technique of choice for high-resolution, soft tissue imaging. The high cost of these systems has limited their use in the current, cost-constrained healthcare environment.

In a climate of decreasing reimbursements and increasing pressure to control costs, less expensive, low-field MRI scanners (0.2 Tesla and below) like the Siemens Open System, represent the fastest-growing segment of the MRI market. Apart from lower cost, these systems offer increased physical access to the patient due to the reduced size of the magnets needed to generate the required field. These "open" systems are also beneficial for large or claustrophobic patients who cannot be scanned in a traditional high-field system. All of the major MRI manufacturers, seeing the need in the market place, have introduced low-field, open-design systems within the past two years.

"A key element in the future growth of applications and expanded acceptance of low-field MRI will be improving the sensitivity of these lower cost systems. Conductus' superconducting receiver technology could offer a significant increase in system sensitivity allowing faster patient throughput and increased image resolution," said Herman Requardt, General Manager of Siemens' MRI business. "Our work with Conductus is part of our ongoing efforts to explore third party technology that can directly benefit our installed base and future customers."

According to Charles Shalvoy, president and CEO of Conductus, "The Siemens agreement allows us to develop HTS technology for applications with an acknowledged leader in medical imaging. Siemens' expertise in the technology and applications of MRI will be tremendously valuable in our efforts to develop products for that industry. Depending on the application, we expect to be able to offer increases of up to 100% in system sensitivity. If all goes as planned, we hope to have a `works in progress' imaging demo ready for the RSNA (Radiological Society of North America) annual meeting in December."

Conductus, Inc. (NASDAQ: CDTS) develops, manufactures and markets electronic components and systems based on superconductors for applications in wireless communications, magnetic resonance instruments and magnetic sensing. Conductus was founded in 1987 following the discovery of high-temperature superconductors.

Siemens AG Medical Engineering Group, with its activities concentrated on imaging systems and electromedicine, supplies health services worldwide as the largest supplier of high-technology equipment and systems for medical diagnostics and therapy. With sales of DM 7.5 billion and orders received of DM 7.8 billion (fiscal year 1994/5), Medical Engineering, employing about 18,000 people throughout the world, is one of the larger groups, and for almost 150 years, has been a technical and corporate key area of Siemens.

CONTACT: Conductus, Inc.

Irv Hipschman, 408/523-9437