Norland Medical Systems, Inc. announces bone densitometry collaboration with Merck.

WHITE PLAINS, N.Y.--(BUSINESS WIRE)--January 19, 1996--NORLAND MEDICAL SYSTEMS, INC. (NASDAQ: NRLD) today announced that it has entered into a financing agreement with Merck & Co., Inc. (NYSE:MRK). This agreement will enable Norland to help more physicians provide bone mass measurements so that women who have previously undetected osteoporosis can be diagnosed before they suffer a debilitating fracture.

Osteoporosis is a bone thinning disease that affects more than 25 million Americans, 80% of whom are women. The cost of treating osteoporosis-related fractures is estimated at more than $10 billion annually in the United States alone. Although more than 40 percent of women age 50 and over will suffer a fracture due to osteoporosis, less than 3 percent of the U.S. population have had their bone mass measured.

This agreement allows for placement of all Norland's dual-energy X-ray ("DXA") systems, including the full-sized XR36(TM), the compact Eclipse(TM) and the desktop pDEXA(R). The pDEXA(R) is approximately half the cost of traditional DXA machines marketed by Norland's competitors. The system fits on a desktop, making it accessible to physicians with smaller offices, as well as hospitals, women's centers and larger facilities. The scans or readouts from the pDEXA(R) tend to cost about half as much as traditional DXA scans and are considered equally as accurate. Norland introduced the pDEXA(R) in the Pacific Rim in 1994 and since the introduction, has already sold in the Pacific Rim more than half the total number of traditional DXA systems sold in the United States over the past 8 years, all brands combined. The pDEXA(R) was cleared by the U.S. Food and Drug Administration in 1995. Last October, following the clearance by the U.S. Food and Drug Administration of Merck's Fosamax(R) for the treatment of osteoporosis in post-menopausal women, Norland began marketing the pDEXA(R) in the United States.

Norland's agreement will be managed by the Bone Measurement Institute, a non-profit subsidiary of Merck & Co., Inc. created to make bone measurement more accessible to physicians and their patients, lower the cost of bone measurement tests, educate patients on the role of bone measurement and related technologies and advance the science of bone measurement technologies.

"In the overall market, more new bone measurement devices were placed in the last three months than were placed all of last year," said Jeremy Allen, Bone Measurement Institute president. "Also, since May, the average number of scans per machine has increased four-fold."

"We are extremely excited about our agreement with Merck," stated Reynald Bonmati, chairman and president of Norland Medical Systems, Inc. "This agreement provides us with an opportunity to play an integral role in the diagnosis and treatment of osteoporosis, while at the same time enabling us to reach additional physicians with our cost effective, compact products. Moreover, we are pleased to be part of a program that exhibits the same dedication and commitment to women's health issues as we do at Norland Medical Systems."

Merck & Co., Inc. is a leading research-driven pharmaceutical products and services company. Merck discovers, develops, manufactures and markets a broad range of innovative products to improve human and animal health. The company is currently engaged in research and development in the field of osteoporosis, and its medicine. Fosamax(R) has recently been cleared for marketing by the Food and Drug Administration as the first nonhormonal treatment for osteoporosis in post-menopausal women.

Norland Medical Systems, Inc., headquartered in White Plains, N.Y., markets, sells and services bone densitometers used to aid in the diagnosis and monitoring of osteoporosis and other bone disorders. The Company has rights to exclusive worldwide distribution and service of all current and future medical diagnostic products developed and manufactured by Norland Corporation and Stratec Medizintechnik GmbH.

CONTACT: Norland Medical Systems, Inc.

Reynald Bonmati

President

914-694-2285

or

Lippert/Heilshorn & Associates Inc.

Investor Relations Contact:

John Heilshorn

212-838-3777/ext. 122