OPHTHALMIC DIAGNOSTIC MARKET TO TOP $200 MILLION BY 2000, LED BY IMAGING, CORNEAL TOPOGRAPHY.

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)-- The U.S. ophthalmic diagnostic equipment market will grow from $142 million in 1993 to $236 million by the year 2000 at a 7.5 percent compound annual rate, projects a new study just released by Frost & Sullivan.

Corneal topography and diagnostic imaging systems will pace growth, the former expanding from 13 percent of the market in 1993 to 28 percent by the year 2000, and the latter growing from 5 to 14 percent in the same period, forecasts the report, OPHTHALMIC DIAGNOSTIC EQUIPMENT MARKET.

Technological innovations are stimulating growth in an otherwise stagnant, saturated market dominated by longstanding traditional products. In addition to imaging and corneal topography, computer networks and data communications have also contributed to renewed growth.

Pending healthcare reform and an uncertain economy have constrained the market. End users concerned about possible changes in the healthcare system and uncertain about new technologies have delayed equipment upgrades. Growth will accelerate until it peaks at a projected 11 percent by 1997 with improved clinical acceptance and more affordable pricing of new technologies. In addition, many end- users currently postponing replacement purchases of traditional equipment will need to replace equipment on a large scale in the later 90s.

Historically dominated by stable and standardized technologies, the diagnostic equipment market has recently entered a phase of dramatic technical development. Buyers have increasingly formed larger, consolidated group practices. Efficiency has become more vital, fostering equipment-sharing to reduce costs. Equipment automation is valued for allowing increased patient throughput and resulting greater efficiency and profit potential. Equipment is increasingly being networked with medical records and billing to form more efficient office systems. The use of communication equipment within ophthalmic and optometric offices has increased.

The shift from traditional standards to new equipment is only gradual due to the latter's high prices. Many end-users, including opticians and some optometrists, will continue relying on older, less costly devices. As prices decline, many ODs will support demand in new product areas.

Manufacturers are packaging equipment at lower prices. Vendors will try to move traditional equipment by offering it inexpensively, bundled with new technology products.

Equipment compatibility has become an important competitive factor. Manufacturers offering traditional devices that can't interface or network with others will face poor demand. Prices in both imaging markets are declining, yet are expected to fall more significantly in the latter 90s as the reimbursement climate for these relatively new, non-standardized technologies improves.

The ophthalmic diagnostic equipment market includes perimeters, automatic and manual refractors, slit lamps, contact and non-contact tonometers, fundus cameras, automatic and manual lens meters, direct and indirect opthalmoscopes, ultrasound equipment, corneal topography systems and imaging systems -- including retinal fluorescein, ICG angiography and optic nerve head imaging systems.

Frost & Sullivan is an international high-technology research firm. All Frost & Sullivan reports are based on extensive interviews with marketing and technical experts from selected companies in each market segment. Primary research is validated by thorough analysis of available secondary research. Frost & Sullivan is the leading publisher worldwide of high-technology research reports.

Report: 5064-54 Publication Date: 1994 Price:$1895

Total Ophthalmic Diagnostic Equipment Market:

Revenue Forecasts (U.S.),

1990-20003-1 Total Ophthalmic Diagnostic Equipment Market:

Revenue Forecasts (U.S.),

1990-2000gures

Revenue

RevenuesGrowth Rate

Year ($ Million) (%)

1990 111.7 ---

1991 119.2 6.8

1992 132.3 10.9

1993 141.7 7.2

1994 150.1 5.9

1995 160.4 6.9

1996 176.3 9.9

1997 195.2 10.7

1998 208.5 6.8

1999 221.8 6.4

2000 235.6 6.2

Compund Annual Growth Rate (1993-2000): 7.5%

All figures are rounded. Source: Frost & Sullivan

CONTACT: For further information please contact:

Amy Arnell Kristina Menzefricke Nadge Keryhuel

Mountain View London Paris

[phone] 44 71 730 3438 33 1 4742 9127

[phone](fax) 44 71 730 3343 33 1 4742 9129

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