Monday January 25, 7:01 am Eastern Time
Company Press Release
Imatron Acquires Controlling Interest in Positron
Recent Reimbursement Approvals of PET Procedures Important in Positron's Re-Launch
SOUTH SAN FRANCISCO, Calif.--(BW HealthWire)--Jan. 25, 1999-- Imatron Inc. (Nasdaq:IMAT - news) announced today that it has acquired 9,000,000 shares of Common Stock of Positron Corporation (OTC:POSC - news), providing the company with a controlling interest in Positron, a designer and manufacturer of medical imaging devices utilizing positron emission tomography (''PET'').
Positron announced that effective immediately, S. Lewis Meyer, Imatron's Chief Executive Officer, and Gary H. Brooks, Imatron's Chief Financial Officer, have been appointed to Positron's Board of Directors, with Meyer serving as Chairman, and Brooks, as President and Director. Dr. Gary B. Wood, Positron's former Chairman
will continue as a member of Positron's Board. All other Board members, as well as Positron's officers, have resigned, in accordance with a December 18, 1998 shareholder vote, which, at the same time, also approved an increase in Positron's authorized Common Stock.
Imatron is working with third-party equity financing groups in an attempt to recapitalize Positron and support its re-entry into the medical imaging market. The securities to be offered will not be registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable
exemption from the registration requirements.
S. Lewis Meyer said, ''We are pleased to announce the consummation of the Imatron-Positron transaction, which we believe will enhance shareholder value for Imatron shareholders as the value of Imatron's investment in Positron is realized. This acquisition not only provides Imatron with a direct ownership position in a complementary medical imaging technology, but it also represents an ideal fit with our Japanese affiliate, Imatron Japan, which has ordered ten POSICAM(TM)
systems to be delivered over the next three years.''
Meyer continued, ''I am also pleased to announce the appointment of Gary Brooks as Positron's new President and member of Positron's Board of Directors. We are eager to begin the repositioning of Positron in the medical imaging market and bring the company to profitability. We hope to capitalize on the many synergistic opportunities between Imatron and Positron and establish both companies as leaders in their respective medical imaging markets.''
Gary H. Brooks, President of Positron, commented, ''We believe that the recent establishment of reimbursement by the Health Care Financing Administration (HCFA) for PET procedures in oncology, cardiology and neurology positions Positron and PET for future growth. Previously, the lack of widespread PET reimbursement by the healthcare system posed the most significant impediment to the acceptance of PET within the clinical environment.''
Positron Corporation designs, manufactures, markets and services POSICAM(TM) PET systems, which are medical imaging devices utilizing positron emission tomography (''PET'') technology.
PET technology permits the measurement of the biological processes of organs and tissues, as well as producing anatomical and structural images. POSICAM(TM) systems are used by physicians in the diagnosis and management of heart disease and certain other neurological and oncological heart illnesses.
Imatron, Inc. is primarily engaged in designing, manufacturing, marketing, and supporting high performance computed tomography (CT) scanners based on the Company's proprietary scanning electron beam technology. Ultrafast CT is a registered trademark of Imatron.
Imatron's Ultrafast CT scanner is now in use at major medical centers around the world, including The Mayo Clinic, University of Iowa, National Institutes of Health, UCLA, Stanford University, University of Illinois, The Arizona Heart Institute, The Royal Brompton Hospital in London, Tokyo University Hospital and Beijing
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