DGAP-News: Acquisition-related surge in earnings: MeVis

MeVis Medical Solutions AG / Strategic Company Decision

21.10.2008

Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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New group structure creating the basis for a significant increase in
business

Executive Board announcing forecast for 2009: Revenues of approx. EUR 19
million and EBIT of approx. EUR 6.5 million
MeVis BreastCare joint venture repositioned for a significant increase in
business with Siemens Healthcare
Transaction involves the joint ventures business with Hologic, a
world-wide industry leader in womens health
Purchase price a maximum of EUR 17.5 million payable in installments
through 2015.

MeVis Medical Solutions AG (ISIN: DE000A0LBFE4), a world leader in the
development of software for image-based medicine, has today acquired all of
MeVis BreastCares business with Hologic, Inc. MeVis BreastCare, a MeVis
joint venture established with Siemens, provides diagnostic imaging
software solutions for the early detection and diagnosis of breast cancer
to medical industry leaders Siemens AG and Hologic Inc. The business
activities with Hologic have now been extracted from MeVis BreastCare GmbH& Co. KG. The share attributable to Siemens was acquired by MeVis Medical
Solutions AG.

The MeVis BreastCare joint venture will now fully concentrate on business
with Siemens and extend these activities to include software solutions for
other diseases. 'We are very pleased with this joint step with our partner
Siemens,' says Dr. Carl J. G. Evertsz, CEO of MeVis Medical Solutions AG.
'Via this acquisition, we are able to immediately increase our
profitability and thus also enhance the value of our company. At the same
time, it allows us to develop new software solutions dedicated to Siemens
within the remaining part of the joint venture. Development work on special
applications for the diagnosis of breast cancer using other imaging methods
such as magnetic resonance imaging and 3D ultrasound is already underway.'

At the same time, the full integration of the Hologic business within the
MeVis Medical Solutions consolidated group provides new scope and resources
for intensifying business relations with Hologic, the worlds leading
medical technology company for womens health.

Continues Evertsz: 'After the sharp increase in software license sales in
the first half of 2008, which demonstrated our strong market position as an
independent, worldwide leading producer of software for the image-based
early detection and diagnosis of breast cancer, we are now able to
implement our growth strategy even more consistently with the full takeover
of the MeVis BreastCare business with Hologic.'

To date, the MeVis BreastCare joint venture has been the main source of the
MeVis Medical Solutions Groups revenues and has been consolidated on a
proportionate basis to reflect the 51% of shares owned by MeVis Medical
Solutions. Until now, the profitable Digital Mammography segment was solely
represented by MeVis BreastCare in the Groups financial reports. Following
todays acquisition, the business with Hologic will be fully consolidated
within MeVis Medical Solutions AG Group.
The transaction is taking retroactive effect as of June 30, 2008 for the
purposes of German tax and commercial law. However, todays date is
decisive in terms of IFRS reporting as it is the date on which the contract
was signed.

The future full consolidation of the business with Hologic will result in a
sharp rise in revenues in the Digital Mammography segment in the
consolidated financial statements next year. 'Thanks to this strategically
important acquisition, we are able to communicate our successful business
model even more clearly to investors,' says Dr. Olaf Sieker, CFO at MeVis
Medical Solutions. 'On account of the complete allocation of the results of
this profitable segment in the future, we may be able to announce a
dividend earlier than planned.'

The effects on the current financial year are moderate due to the late date
of full consolidation. However, the Executive Board projects revenues of
approximately EUR 19 million and EBIT of approximately EUR 6.5 for the
financial year 2009, which include the positive effects of this
acquisition.
The object of the transaction concerns the 49 percent share held by Siemens
in the assets of the MeVis BreastCare GmbH & Co. KG joint venture
attributable to the Hologic business. Accordingly, all rights such as
intellectual property, source codes, etc., as well as all employees
attributable to these business activities, are being transferred. These
assets also include cash and cash equivalents of around EUR 4 million.

The purchase price for the acquisition of the Hologic business has been set
at a maximum of EUR 17.5 million and will be payable in several
installments through 2015. The amount of these installments will be
contingent on certain conditions being met. The purchase price to Siemens
comprises a cash component payable over a period up until 2012 as well as
the grant of license credits between 2010 and 2015.

MeVis BreastCare was established in 2001 as a joint venture between MeVis
Medical Solutions AG and Siemens AG. The world-leading MeVis BreastCare
software facilitates the image-based early detection and diagnosis of
breast cancer. To date, more than 4,500 software licenses have been sold
all around the world by Hologic, Inc. and Siemens AG. As a result, MeVis
Medical Solutions has evolved into one of the worlds leading producers of
image-based software solutions for the early detection and diagnosis of
breast cancer.
DGAP 21.10.2008
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Language: English
Issuer: MeVis Medical Solutions AG
Universitätsallee 29
28359 Bremen
Deutschland
Phone: +49 421 330 74-0
Fax: +49 421 330 74-50
E-mail: ir@mevis.de
Internet: http://www.mevis.de
ISIN: DE000A0LBFE4
WKN: A0LBFE
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, München, Düsseldorf, Stuttgart
End of News DGAP News-Service
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DGAP-News: Acquisition-related surge in earnings: MeVis Medical Solutions taking over a substantial part of Siemens joint venture