WORLD MRI MARKET TO DOUBLE BY 1999, TOP $3.2 BILLION, LED BY LOWER-FIELD SYSTEMS, CONTRAST MEDIA.

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Paced by growth of lower-field systems and contrast media, worldwide sales of magnetic resonance imaging (MRI) equipment will double from under $1.6 billion in 1993 to $3.2 billion by 1999, growing at a 10 percent compound annual rate, projects a new study just released by Frost & Sullivan. The share of total MRI market revenues going to contrast media will increase dramatically, from 17.2 percent in 1993 to 38.4 by 1999, while that of high-field equipment declines from 38 to 24 percent in the same period as end-users turn to medium- and low-field equipment of lower cost and increasingly comparable capabilities, forecasts the report, WORLD MRI MARKETS: DEDICATED IMAGING COILS LEAD SHIFT TO LOWER-FIELD SYSTEMS.

The higher field MRI systems have recently shown great vulnerbility in the U.S. market. Although they ocntinue to sell well in other parts of the world, the unpredictability in the U.S. market due to healthcare reform caused a 27 percent decline in the domestic MRI market in 1993. Consequently, in the same year, the world MRI market was negatively affected by 11 percent as well.

The mid-range market will face increased competition, however, from the lower-field market, due to the latter's also-declining costs and improving technology. The advent of imaging coils has made possible higher image quality on lower- priced units for the approximately 15 percent of imaging that required high-field systems before their introduction.

The development of MRI contrast media has greatly enhanced MRI's viability and made possible its entry into new clinical domains such as mammography. The new generation of contrast agents introduced in 1992/93 are non-ionic, having fewer side- effects though they remain more costly. Use of contrast media is proving very beneficial for imaging organs that are proton-dry or so positioned inside the body as to offer inadequate contrast without their infusion.

Magnetic resonance angiography (MRA) is making a comeback as an alternative to x-ray angiography. Price reductions in high- field MRI machines along with their increasing use for cardiac imaging with availability of audiographic packages will increase unit shipments worldwide.

Systems with the ability to image more than one location -- as is made possible by RF imaging coils -- will be much more successful in managed-care environments than dedicated single- location equipment. While U.S. vendors lead the world now in both market share and product innovation, they will be effectively challenged by competitive pricing from Japanese manufacturers. Although Europe has lagged in MRI adoption, France and Germany will increase their purchases dramatically over the coming years.

MRI, particularly well-accepted in the U.S. and Japan, is used for a variety of medical applications including imaging of the central nervous system, heart, tissues and bones, and recently, the breast. In 1992, more than 5000 operational MRI scanners worldwide performed some 9 million scans. While MRI is one of two major radiation-free imaging modalities (the other being ultrasound), it is also one of the most expensive imaging techniques to acquire and use, a constraint at a time healthcare cost containment is a major focus worldwide.

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.

Code: 882-50 Publication Date: 1994 Price: $2495

Total MRI Market:

Revenue Forecasts (World),

1989-19993-1 Total

Revenue Forecasts (World),

1989-1999gures

Revenue

Revenues Growth Rate

Year ($ Billion) (%)

1989 1.13 ---

1990 1.31 15.7

1991 1.48 13.1

1992 1.64 10.2

1993 1.45 (11.1)

1994 1.61 10.5

1995 1.82 13.4

1996 2.10 14.4

1997 2.40 15.3

1998 2.78 15.7

1999 3.20 14.6

Compound Annual Growth Rate (1992-1999): 10.0%

Note: All figures are rounded. Source: Frost & Sullivan, Inc.

CONTACT: For further information 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 REPEATS: New York 212-575-8822 or 800-221-2462; Boston 617-330-5311 or

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