CTMI Cti Molecular Imaging - Common Stock (MM)

CTI PET Systems, a Unit of CTI Molecular Imaging, and Toshiba Medical Systems Announce Development of New Integrated PET/CT System KNOXVILLE, Tenn., Sept. 7 /PRNewswire-FirstCall/ -- CTI PET Systems, Inc. (CPS), a unit of CTI Molecular Imaging, Inc. (NASDAQ:CTMI), and Toshiba Medical Systems Corporation announced their agreement to jointly develop a line of integrated PET/CT systems for Toshiba to distribute in Japan. This development agreement serves to formalize the collaborative work that has taken place between the two companies for over a year. It also expands the relationship of the companies under which Toshiba is presently a distributor in Japan for dedicated PET units manufactured by CPS. This agreement brings together two leaders in diagnostic imaging to pursue the significant market opportunity for PET/CT, a technology that was co- invented by Ronald Nutt, Ph.D., President and Chief Executive Officer of CTI Molecular Imaging. The PET/CT combines positron emission tomography (PET) and computed tomography (CT) into one system to produce a PET image showing metabolic function and a CT image showing anatomic structure in a single study. This combination improves patient throughput without losing any image quality. PET/CT is used most frequently in the detection and treatment of cancer, neurological disorders and cardiac disease. Under the agreement, the new PET/CT platform is being designed based upon the PET technology of CPS and the CT technology of Toshiba. CPS utilizes CTI Molecular Imaging's proprietary LSO-based detector crystals that provide superior scanner performance. CPS's PET technology features faster image processing as well as greater spatial resolution for better image quality. Toshiba's Aquilion 16-slice CT is a high performance and extremely versatile scanner that has contributed to Toshiba's reputation as one of the leading worldwide producers of CT equipment. "This agreement is a significant expansion of CPS' product development and distribution capabilities. Toshiba is a recognized leader in imaging technology and has significant market share for CT equipment worldwide, particularly in Japan. We are delighted to be co-developing a state-of-the- art PET/CT line based on their CT capabilities and design," said Greg Brophy, President of CTI PET Systems. "Japan is a large and attractive healthcare market where PET is currently underutilized. We believe Toshiba possesses tremendous capability to use a new PET/CT product line to accelerate market adoption of PET by introducing it to their sizable installed base of CT customers," continued Brophy. "Although the domestic PET market has slowed in recent quarters, PET growth is strong in international markets. We expect that approximately 175 scanners, or 40% of all PET units, will be sold in international markets in 2005." "We are pleased to expand our relationship with CPS to include the development of a new PET/CT," said Toshihiro Rifu, General Manager of the CT Systems Division of Toshiba Medical Systems. "Under the new agreement, we will be able to offer our customers Toshiba's industry leading CT technology combined with the highest performance PET scanners on the market. We have a very loyal customer base in Japan and believe that they will find this product very attractive." The first prototype PET/CT developed between CPS and Toshiba was unveiled in Japan at the Congress of the Japan Radiological Society on April 8, 2004. CPS and Toshiba anticipate that the new PET/CT will be commercially available during the first half of 2005. About CTI PET Systems: CTI PET Systems, Inc. operates under the trade name CPS Innovations and is a joint venture between CTI Molecular Imaging, Inc. and Siemens Medical Solutions USA, Inc. CPS develops and manufactures PET scanners and other imaging technology, which it sells through distributors, including Siemens Medical Solutions USA, Inc., Hitachi Medical Systems of America, Inc., and Toshiba Medical Systems Corporation. About CTI Molecular Imaging: CTI Molecular Imaging, Inc. is a leading supplier of products and services for positron emission tomography (PET), a diagnostic imaging technology used in the detection and treatment of cancer, neurological disorders and cardiac disease. Additional information is available at: http://www.ctimi.com/ . About Toshiba Medical Systems Corporation: Toshiba Medical Systems Corporation is an independent group company of Toshiba Corporation. The company is a global leading provider of diagnostic medical imaging systems and comprehensive medical solutions, such as CT scanners, X-ray, ultrasound, Nuclear Medicine, MRI equipment, and information systems for medical institutions with annual sales of 270 billion yen (consolidated). About Toshiba Corporation: Toshiba Corporation is a leader in the development and manufacture of electronic devices and components, information and communication systems, consumer products and power systems. The company's ability to integrate wide- ranging capabilities, from hardware to software and innovative services, assure its position as an innovator in diverse fields and many businesses. In semiconductors, Toshiba continues to build on its world-class position and NAND flash memories, analog devices and discrete devices and to promote its leadership in the fast growing system-on-chip market. Toshiba has approximately 166,000 employees worldwide and annual sales of over US$47 billion. Visit Toshiba's website at http://www.toshiba.co.jp/index.htm . Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, which may be identified by words such as "assume," "expect," "anticipate," "intend," "estimate" or similar expressions, include statements regarding the anticipated financial impact and operational improvements resulting from the new distribution arrangement with Siemens and any other statements that necessarily depend on future events. Forward-looking statements involve a number of risks and uncertainties and there can be no assurance that any forward-looking statements will prove to be accurate. Various factors could cause actual results to differ materially from those anticipated in the forward-looking statements. CTI undertakes no obligation to update or revise any forward-looking statements. Further information regarding risks, uncertainties and other factors that could adversely affect CTI or cause actual results to differ materially from those anticipated in forward-looking statements are included in CTI's Annual Report on Form 10-K for the fiscal year ended September 30, 2003 and Quarterly Report on Form 10-Q for the quarter ended June 30, 2004. DATASOURCE: CTI Molecular Imaging, Inc. CONTACT: Michael A. Lawless of CTI Molecular Imaging, Inc., +1-865-218-2000 Web site: http://www.ctimi.com/ http://www.toshiba.co.jp/index.htm

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