Sectra and Philips complete modality transaction

Sectra and Philips complete modality transaction

Sectra (http://www.sectra.com/medical/index.html) (NASDAQ OMX Stockholm:
SECT B) has completed a mammography-modality deal with Royal Philips
Electronics (AEX: PHI, NYSE: PHG). Philips will pay EUR 57.5 million in
a cash-on-cash and debt-free basis and take over the acquired modality
operation today, September 1, 2011.

“The deal with Philips will give us the resources we need to continue
our efforts and expand our business. In Medical Systems, we can
concentrate on our core business and aim for a larger share of the
market growth for medical imaging IT systems, which is growing rapidly,”
says Torbjörn Kronander, President of Sectra's medical systems
operation.

The divested operation represented 14% of the Sectra Group's net sales
for fiscal year 2010/2011 and has approximately 110 employees. The
transaction comprises Sectra's mammography-modality operations
worldwide, except for Australia and New Zealand where Sectra will
continue to sell and service the unique MicroDose mammography modality
under a separate distribution agreement with Philips.

The agreement includes an additional earn-out of EUR 12.5 million, which
will fall due if the agreed terms and conditions are achieved over a
period of five years. This transaction, excluding the possible earn-out,
is estimated to generate a capital gain in terms of earnings of about
SEK 300 million after tax for Sectra.

Focus on medical IT

Sectra is one of the world's largest suppliers of medical imaging IT
solutions. Sectra provides radiology, mammography, orthopeadic and
rheumatology clinics with medical-imaging IT solutions and services that
enhance the efficiency of medical care, contribute to raising the
quality of care and optimize production. Enhancing the efficiency of
healthcare for women is a priority for Sectra.

“Mammography imaging IT solutions is a niche market where Sectra holds a
leading position. To further increase the value of mammography programs,
customers can also add our innovative osteoporosis analysis service. We
will now be working with all modality providers in the mammography
market, which enhances our reputation as a highly professional and
independent IT systems integrator,” says Torbjörn Kronander.

For further information, please contact:
Dr. Torbjörn Kronander, President, Sectra Imtec AB, +46 705 23 52 27
Dr. Jan-Olof Brüer, CEO and President, Sectra AB, +46 13 23 52 09
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