Elscint Ltd. Announces Receipt of Notice From Elbit Medical Imaging Ltd. Regarding the Termination of Discussions On a Business Combination Between the Two Companies.

HAIFA, Israel--(BUSINESS WIRE)--Sept. 7, 1999--

Elscint Ltd. (NYSE: ELT - news), a subsidiary of Elbit Medical Imaging Ltd. (NASDAQ: EMITF - news), announced today that it has received a letter from the Committee of Independent Directors of Elbit Medical Imaging ("EMI") pursuant to which EMI has decided to terminate the discussions on the proposed business combination between the two companies.

EMI's letter puts an end to discussions that were initiated by EMI on February 18, 1999.

The letter, which was signed by the members of the Committee of Independent Directors of EMI, states that the Committee has resolved that the proposed business combination would not be in the best interests of the shareholders of EMI.

Abraham (Rami) Goren, Chairman of Elscint's Board of Directors, stated that Elscint's Board is in the late stages of a long-term process of evaluating various alternatives to increase shareholder value.

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.