Covalent Group, Inc. Announces Broadened Domestic and International Clinical Trial Potential Through Strategic Alliance with Imatron, Inc.

SO. SAN FRANCISCO, Calif.--(BW HealthWire)--Nov. 4, 1999--

In a move designed to open up a broad array of new domestic and international clinical research opportunities, Covalent Group, Inc. (Nasdaq:CVGR) today announced the formation of a strategic alliance with Imatron, Inc. (Nasdaq:IMAT), the sole manufacturer and provider worldwide of electron beam tomography (EBT), a technology that allows the serial non-invasive assessment of atherosclerotic plaque burden in coronary artery disease.

Through this alliance, Covalent will include Imatron's EBT technology in a major ongoing clinical trial it is conducting that evaluates the effects of medication on progression/regression of atherosclerotic coronary artery disease, the number one cause of death in the United States. The EBT component of the study, set to be conducted at 16 EBT imaging centers in the United States and Europe, is additive to Covalent's previously announced $14 million study sponsored by a top-tier pharmaceutical company for its leading product.

Kenneth M. Borow, M.D., President and Chief Medical Officer of Covalent, said, "This is Covalent's second major clinical research trial utilizing Imatron's proprietary EBT technology, following an initial and previously announced $5 million study employing EBT. As a cardiologist, I am especially pleased that Covalent was selected as a lead player in these important clinical research studies directed towards the detection and treatment of coronary artery disease. We now look forward to future announcements of major international clinical trials to be performed by Covalent with utilization of the EBT technology."

S. Lewis Meyer, Chief Executive Officer of Imatron, said, "We are pleased that our proprietary EBT technology is being utilized by the Covalent Group as a critical element in its trials with several of the world's leading pharmaceutical companies. This technology will be an integral part of these comprehensive clinical studies to evaluate 'state-of-the-art' pharmacological regimens in the treatment of atherosclerosis. We are optimistic that the results in these studies will reveal the true scope and potential of EBT as it provides detailed data on the assessment of atherosclerotic plaque burden and the determination of the efficacy of treatments for atherosclerosis."

Covalent provides drug development services and health management solutions to pharmaceutical and device manufacturers, as well as managed care organizations. To aid its pharmaceutical and managed care customers, Covalent has developed a disease assessment system, Virtual HouseCall(R), and a clinical trial management system, TeleTrial(R), using interactive speech recognition technology.

Imatron, Inc. is primarily engaged in designing, manufacturing, marketing, and supporting high performance EBT scanners based on the Company's proprietary electron beam tomography (EBT) technology. Imatron's EBT scanner is now in use at more than 110 major medical centers around the world, including the Mayo Clinic, Cedars-Sinai Medical Center, Mount Sinai Medical Center, University of Iowa, National Institutes of Health, UCLA Medical Center, Stanford University, Cooper Clinic, HealthScan of La Jolla, Vital Imaging Diagnostic Clinic, University of Illinois, Arizona Heart Institute, Landeskrankenhaus Graz in Graz, Austria, Daniel den Hoed Klinik in Rotterdam, Netherlands, Cardiology Research Centre in Moscow, Russia, FAU Erlangen-Nurnberg in Erlangen, Germany, Zentralklinik Bad Berka in Bad Berka, Germany and Beijing Hospital in China.

Except for the historical information contained herein, the matters discussed in this news release may contain forward-looking statements that are based on current expectations and estimates about the industry in which Imatron operates, the estimated impact of certain technological advances, the estimated impact of published research studies on scanner sales and procedures, as well as management's beliefs and assumptions. It is important to note that the Company's actual results could differ materially from those projected in such forward-looking statements. The factors that could cause actual results to differ materially include, among others: failed clinical demonstration of certain asserted technological advantages and diagnostic capabilities; reliance on product distributors; competition in the diagnostic imaging market; failure to improve product reliability or introduce new product models and enhancements; delays in production and difficulty in obtaining components and sub-assemblies from limited sources of supply; inability to meet cash-on-delivery or prepayment terms from vendors; determinations by regulatory and administrative government authorities; patent expiration and denial of patent applications; the high cost of the scanner as compared to commercially available CT scanners; and the risk factors listed from time to time in the Company's Securities and Exchange Commission reports, including their reports on Form 10-K for their current fiscal year.