CTMI Cti Molecular Imaging - Common Stock (MM)

CTI Molecular Imaging, Inc. Comments on Announcement by CMS of Final APC Rates for 2005 KNOXVILLE, Tenn., Nov. 4 /PRNewswire-FirstCall/ -- CTI Molecular Imaging, Inc. (NASDAQ:CTMI), a leading provider of positron emission tomography (PET) equipment, molecular biomarkers and services, commented on yesterday's announcement by the Centers for Medicare and Medicaid Services (CMS) of the final 2005 Medicare ambulatory payment classification (APC) rates for PET procedures. In its announcement, CMS has adjusted the technical fee for the use of a PET scanner (APC 1513) and the payment rate for the administration of FDG (APC 1775). Under the final rates, the combined Medicare APC rates to a healthcare provider for a whole-body PET scan in 2005 will be $1,371.11. These final rates go into effect on January 1, 2005. Further information is available at: http://www.cms.hhs.gov/ . "We have expected for some time that CMS would gradually reduce reimbursement rates for PET scans as Medicare coverage for PET continued to be broadened. Reimbursement rates are influenced by provider costs and these costs are directly tied to utilization volumes. Accordingly, as PET adoption continues to grow rapidly, the provider cost associated with each PET procedure will decline over time, triggering lower reimbursement rates," commented Ronald Nutt, Ph.D., President and Chief Executive Officer. "We incorporated an expectation for reduced Medicare reimbursement levels into our budget for 2005 and in the preliminary scanner unit guidance for 2005 that we provided at the end of the third quarter. We are confident that this CMS announcement will not have a significant impact on our scanner unit volume in 2005 and we will provide our detailed financial outlook for 2005 during our fourth quarter earnings conference call scheduled on November 16, 2004. This reimbursement change only pertains to hospital-based outpatient services, which we estimate to be less than 25% of the market." "In addition, we are pleased by CMS' comments regarding the reimbursement practices for combined PET/CT scans. CMS is encouraging healthcare providers to bill separately for the appropriate CT scans as part of the combined PET/CT procedures. The CT rate is paid to the provider on top of the reimbursement for the PET scan. CMS indicates that it will issue billing guidance to providers to assist them in properly billing for both the PET and CT portions of the procedure," continued Dr. Nutt. 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 PET and PET/CT: PET images the biology of diseases at the molecular level, often before anatomic changes are visible or, in some cases, before symptoms appear. Diseases are biological processes and it is these processes that PET examines. PET/CT is an imaging technology that combines the biological examination of patients by PET with the CT images of the body's structural detail. PET/CT technology improves the diagnostic accuracy and treatment management of patients by providing surgeons, radiation oncologists and other physicians with precise anatomical landmarks associated with the disease condition as determined by PET. PET's whole-body imaging capability helps physicians improve their ability to detect and determine the location, extent and stage of cancer, neurological disorders and cardiac disease. By improving diagnosis, PET scans aid physicians in selecting better courses of treatment, as well as assessing whether treatment is effective or should be changed. Recent published clinical trials have shown that in a wide array of cancers, the use of PET has caused the treatment to be changed for 15 to 50% of patients, depending on the specific clinical question. In addition, PET and PET/CT provide both the patient and their physician with a degree of certainty that is often unavailable through other imaging methods. 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 may be identified by words such as "believe," "expect," "anticipate," or similar expressions, and include any 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 the 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.cms.hhs.gov/

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