Elbit Medical Imaging Ltd. Announces Termination of Discussions Regarding a Possible Business Combination With Elscint Ltd.

TEL-AVIV, Israel--(BUSINESS WIRE)--Sept. 7, 1999--

Elbit Medical Imaging Ltd. (NASDAQ: EMITF) (hereinafter "EMI") announced today that it has notified Elscint Ltd. (NYSE: ELT) (hereinafter "Elscint") that it has terminated discussions regarding a possible business combination been EMI and Elscint.

Following extensive deliberations and contacts with the Committee of Independent Directors of Elscint, the Committee of Independent Directors of EMI, which had been appointed to review and consider the proposed transaction, resolved that Elscint's financial condition and financial exposure resulting, mainly, of the contingent and other liabilities relating to the sale of Elscint's assets in 1998, had led them to conclude that the proposed transaction would not be in the best interests of the shareholders of EMI.

This release contains certain forward-looking statements which involve known and unknown risks, uncertainties or other factors not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or other expectations implied by these forward-looking statements. These factors include, but are not limited to, those detailed in the Company's periodic filings with the Securities and Exchange Commission.