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Diagnostic imaging

Cedara completes acquisition of eMed Technologies

TORONTO – Cedara Software Corp., a leading independent developer of medical software technologies for the global healthcare market, announced today that it has completed the acquisition of eMed Technologies Corporation of Burlington, Massachusetts, a privately held provider of Picture Archiving and Communications Systems (PACS) and web-based medical imaging radiology solutions.

For the year ended December 31, 2003 eMed posted approximately US$24 million in revenue, US$3 million in net income and US$5 million in cash flow from operating activities. On closing, eMed’s balance sheet included cash of approximately US$19 million and no debt.

In accordance with terms disclosed when the original agreement was announced, Cedara paid US$48 million in cash for eMed. Cedara financed the net cash disbursement of approximately US$29 million to complete the transaction with approximately US$14.5 million from its own cash reserves and approximately US$14.5 million from its new credit facility with the Royal Bank of Canada.

Now a wholly-owned subsidiary of Cedara Software Corp., eMed will immediately be a valuable complementary addition to the company. For the past three consecutive years, eMed has been rated as one of the top three PACS vendors by KLAS, which independently ranks healthcare and PACS vendors. According to Cedara, EMed stands out particularly in the quality of its customer support services. It also has very successful sales, marketing, technical service and systems integration capabilities that will complement Cedara’s engineering and R&D capabilities.

In addition, eMed’s sizable installed base of hospital and imaging centers across the United States will provide an excellent opportunity for the eMed sales force to promote Cedara’s clinical applications and image management technologies. At the same time, Cedara will use its extensive global channel to promote eMed solutions worldwide.

“I am delighted that we have completed the transaction to bring eMed and Cedara together. We can now concentrate on the job of growing the combined business and maximizing value for our customers, employees and investors,” said Abe Schwartz, Cedara president & CEO.

“The combination of Cedara and eMed significantly expands our overall presence and impact in the growing medical industry. The transaction enables each of us to leverage our considerable competitive strengths, ushering in a new era of growth for our business,” said Mark Smith, eMed CEO.

Mark Smith has agreed to stay on as CEO of eMed. No material change to the structure of the organization is envisioned.

eMed recently debuted its Matrix PACS solution, the only such solution built with the Microsoft .NET smart client architecture. Matrix offers a new generation of technologies for connecting information, people, systems and devices. The smart client technology of Matrix maximizes the power of the PC for easy deployment, maintenance and improved client performance, the company said.

Cedara Software Corp. is a Canadian provider of medical technologies for many of the world’s leading medical device and healthcare information technology companies. Cedara software is deployed in hospitals and clinics worldwide – approximately 20,000 medical imaging systems and 4,600 Picture Archiving and Communications System (PACS) workstations have been licensed to date.

The company’s medical imaging solutions are used in all aspects of clinical workflow, including the capture of patient digital images; the sharing and archiving of images; sophisticated tools to analyze and manipulate images; and even the use of imaging in surgery.

Cedara is unique in that it has expertise and technologies that span all the major digital imaging modalities including angiography, computed tomography (CT), echo-cardiology, digital X-ray, fluoroscopy, mammography, magnetic resonance imaging (MRI), nuclear medicine, positron emission tomography (PET) and ultrasound.