GE Medical Systems To Acquire Kretztechnik AG; 3d Ultrasound one of fastest growing diagnostic procedures.

Business Editors and Medical Writers

MILWAUKEE, ZIPF, Austria and SEOUL, Korea--(BUSINESS WIRE)--July 16, 2001

Today, the GE Medical Systems business of General Electric Company (NYSE: GE) announced that it has signed a definitive agreement to acquire the approximately 65.4% shareholding in Kretztechnik AG (NM: KTA), an Austrian-based innovator in 3D Ultrasound systems, from Medison Co., Ltd. (KSE: A18360). Medison will receive (euro)12.00 in cash for each Kretztechnik share it owns. GE will make a tender offer to all public Kretztechnik shareholders at the price of (euro)17.00 per share in cash within the next two weeks. It is GE's intention, that upon completion of these transactions, Kretztechnik will become a wholly-owned subsidiary of GE.

The Management Board of Kretztechnik has recommended that shareholders accept this offer.

Most widely recognized for its clinical use in obstetrics and gynecology, 3D Ultrasound is rapidly gaining clinical acceptance in other applications. Kretztechnik has experienced strong growth over the last several years as a result of several new and innovative product introductions. In 2000, Kretztechnik introduced the next generation of 3D Ultrasound technology, which allows patients and physicians to view real-time 3D images of anatomy in motion, or effectively 4D imaging.

"3D imaging is one of the fastest growing segments in Ultrasound. It enables new and unique methods of displaying the anatomy and increasing diagnostic confidence," said Joe Hogan, President and CEO of GE Medical Systems. "Patients will be the biggest benefactors of the acquisition, because it will allow GE to accelerate the clinical applications of 3D imaging in the delivery of healthcare."

"While a relatively new technology, 3D imaging in conjunction with Ultrasound contrast agents is a very promising application for the evaluation of tumor vascularity," said Dr. Barry Goldberg at Thomas Jefferson University Hospital in Philadelphia, Pennsylvania. "3-D technology promises to provide better diagnostic information than traditional ultrasound imaging, helping me to better differentiate tumor vascularity from normal vascularity. I am extremely excited to see 3D ultrasound imaging technology maturing into a standard tool of practice."

"GE Medical Systems brings a strong global presence and distribution to emerging technologies such as 3D and 4D imaging," said S.M. Lee, CEO of Kretztechnik. "This acquisition will help expand 3D imaging into new applications, ultimately providing physicians and patients with greater access to this exciting new technology."

"We have assembled a dedicated team to focus on a quick closure to the transaction and I anticipate a smooth integration of our operations. I am excited about Kretztechnik's unique technology and confident we will further accelerate the rapid pace of innovation by combining our collective global experience and expertise," added Omar Ishrak, Vice President and General Manager of Ultrasound for GE Medical Systems.

Medison acquired Kretztechnik in 1996. In 2000, Kretztechnik completed an initial public offering of approximately 35% of its shares on the Neuer Market of the Frankfurt Stock Exchange. Upon the closing of this transaction, GE Medical Systems, Kretztechnik and Medison will enter into a strategic relationship involving the continued distribution of Kretztechnik products by Medison in certain countries in Asia and the cross licensing of technology between the companies.

The transaction with Medison and the tender offer are conditional on GE, through its agreement with Medison and as a result of the tender offer, being able to purchase at least 90% of the total Kretztechnik shares outstanding. This transaction, which is also subject to approval by the relevant regulatory authorities and other customary conditions, is expected to close in September 2001.

Goldman Sachs is advising GE Medical Systems on this transaction. Hypo-Vereinsbank will act as manager of the tender offer.

About Kretztechnik AG

Kretztechnik, based in Zipf, Austria, is a leading manufacturer of 3D ultrasound systems. Kretztechnik recorded sales of approximately (euro)110 million for the latest twelve months ended April 30, 2001. Kretztechnik employs approximately 440 people worldwide and operates subsidiaries in Germany, France, Switzerland and Spain.

About GE Medical Systems

GE Medical Systems is an $8 billion global leader in medical information and technology. Its offerings include networking and productivity tools, health care information systems, patient monitoring systems, conventional and digital X-ray, computed tomography (CT), magnetic resonance (MR), ultrasound, positron emission tomography and nuclear medicine. For more than 100 years, health care providers worldwide have relied on GE Medical Systems for high quality medical technology, services and productivity solutions. For more information, visit the GE Medical Systems Web site at gemedicalsystems.com.

About Medison Co., Ltd.

Medison, based in Seoul, Korea, is a manufacturer of diagnostic Ultrasound and other medical equipment. Medison was founded in 1985 and was the first company to develop diagnostic Ultrasound equipment in Korea. Recently, Medison has been diversifying its business into other related areas such as medical technology, medical Internet and biotechnology. Medison employs approximately 500 people worldwide.

This news release contains forward-looking statements. The following factors, among others, could cause the actual results of the acquisition to differ materially from GE medical's expectations: the ability to timely and fully realize the expected cost savings and revenues; competition; changes in economic conditions, and changes in legislation or regulatory requirements. GE medical does not assume any duty to update forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. Such statements are based on information available as of the date hereof, and are made only as of the date hereof. To the extent that such statements relate to the proposed acquisition referred to in this release, there is a risk, among others, that the transaction might not be completed.

Representatives from both companies will be available to answer questions from the media at the specific time below:

Representatives from the US media:
         Date:  Tues., July 17, 2001
         Time:  5 pm (EDT) (11 pm Frankfurt Time)
         1-800-747-1631 (GE Call Center)
         303-248-1292 (Outside USA)
         Access Code:  6713621
         Leader:  Tom Beckman