DENTSPLY to Acquire a Majority Interest in GAC International Inc.

YORK, Pa.--(BUSINESS WIRE)--April 1, 1998--DENTSPLY International Inc. (Nasdaq-XRAY) Wednesday announced that it has entered into an agreement to acquire a 60% majority interest (on a fully diluted basis) in GAC International Inc., from its principal shareholder.

Closing on the acquisition is subject to completion of the U.S. Government's pre-merger notification review required under the Hart-Scott-Rodino Act which review is expected to be completed within 30 days.

The acquisition will be concluded in a cash transaction valued at approximately $19.5 million and is expected to add approximately $40 million to DENTSPLY's annual sales.

Headquartered in Islip, N.Y., GAC is a privately-held company with more than 30 years' experience in providing orthodontists with a full line of high quality orthodontic appliances. From a start-up company in 1967 which sold only plastic brackets and retainer cases, GAC has grown into an internationally recognized orthodontic company selling to thousands of dental practices in all corners of the world.

GAC has exclusive distribution rights in most of the world under an agreement with Tomy, a Japanese manufacturer which supplies the bulk of the products GAC sells. The two companies' collaboration has resulted in GAC's having a very complete and competitive product line with a well deserved reputation for excellent quality.

GAC products include the Allure, Elan, OmniArch, and Shoulder Bracket Systems, as well as the Sentalloy nickel titanium wire products. They not only represent a wide selection of traditional appliances but also the very latest in orthodontic design.

GAC sells its products in North America through approximately 23 sales representatives and uses the services of exclusive distributors in overseas markets. They have a large and growing customer base in North America with over 16,500 accounts, primarily individual orthodontic clinicians and partnerships.

In the most recent fiscal year, 61% of GAC's sales were in the United States, 29% occurred in Europe and the remaining 10% were generated elsewhere in the world.

Commenting on the acquisition, John C. Miles II, vice chairman and chief executive officer, said, "Our interest in the orthodontic market has been long standing as it holds a number of attractions for DENTSPLY. Initially, orthodontics is a growth area for dentistry. It has a notable success rate and its primary benefits of improved appearance and function are both highly valued and easily perceived.

"On a global basis, the market for orthodontic products is approximately $400 million. We look forward to growing the business in North America and also to bringing the strengths of our company's international presence to expanding GAC product sales in Latin America, Eastern Europe and Asia."

DENTSPLY designs, develops, manufactures and markets a broad range of products for the dental market.

The company believes that it is the world's leading manufacturer and distributor of dental prosthetics, endodontic instruments and materials, impression materials, prophylaxis paste, dental sealants, ultrasonic scalers, and crown and bridge materials; the leading United States manufacturer and distributor of dental x-ray equipment, dental handpieces, intraoral cameras, dental operatory software systems, dental x-ray film holders, film mounts and bone substitute/grafting materials; and a leading United States distributor of dental cutting instruments.

The company distributes its dental products in over 100 countries under some of the most well-established brand names in the industry.

DENTSPLY is committed to the development of innovative, high quality, cost-effective new products for the dental market.

CONTACT: DENTSPLY

Edward D. Yates, senior V.P./C.F.O., 717/849-4243