Elbit Medical Imaging Ltd. Announces That Its Subsidiary Company Elscint Ltd. has Completed the Sale of Its Magnetic Resonance & Nuclear Imaging Businesses to GE Medical Systems.

HAIFA, Israel--(BW HealthWire)--November 27, 1998--Elbit Medical Imaging Ltd. (NASDAQ: EMITF) informs that its 57% owned subsidiary Elscint Ltd. (NYSE: ELT) had announced today that it had completed its sale of the nuclear medicine (NM) and magnetic resonance imaging (MR) businesses to GE Medical Systems for $100 million. Elscint shareholders voted to approve the sale at a special meeting on Friday November 20. On November 25 the companies finalized the transaction.

The transaction includes Elscint's sales and service capabilities for both of these businesses and certain design and manufacturing capabilities of the MR business. The operations sold include more than 450 employees all over the world.

GE Medical Systems and Elscint will continue their joint venture, ELGEMS, which was formed in 1997, for the design and manufacturing capabilities of nuclear imaging products.

Elbit Medical Imaging Ltd. (Nasdaq: EMITF) is an advanced medical imaging company serving healthcare professionals worldwide. -0- Forward looking statements with respect to the Company's business, financial condition and results of operations, in this release are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward looking statements, including, but not limited to, product demand, pricing, market acceptance, changing economic conditions, risks in product and technology development, the effect of the Company's accounting policies as well as certain other risk factors which are detailed from time to time in the Company's SEC filings.