Agfa Medical Device Company Intelligence Report

SUMMARY

Agfa-Gevaert (Agfa), headquartered in Mortsel, Belgium, is one of the world's leading imaging companies. Agfa develops and markets analogue and digital systems for the graphics, healthcare, micrographics, motion picture film and consumer photography markets. In fiscal 2003, Agfa's sales were € 4.2 billion, a drop of 10% from the prior year, although net profit increased by 66.5% to € 323 million.

This report focuses on Agfa HealthCare which provides products and services designed to create a fully-integrated healthcare enterprise, including imaging systems, picture archiving communication systems (PACS), digital networks and radiology information systems (RIS). Agfa HealthCare accounts for around 33% of Agfa's total group sales.

In fiscal 2003, Agfa HealthCare's operations continued to grow, although HealthCare's revenue fell by 5.6% to € 1.4 billion as a result of exchange rate variances. Excluding currency effects, turnover increased by 3.8%. With only 43% of its turnover in Europe, HealthCare is Agfa's business unit which is most affected by the strength of the euro. Despite adverse currency effects, Agfa HealthCare's operating result increased to € 264 million, compared with € 223 million in 2002, while the return on sales reached 18.8%, compared with 15% in the previous year. Growth was driven by the conversion to digital imaging and the automation of the care process, as well as supply agreements with Premier and Novation which helped to boost US sales.

Steps were also were made to strengthen Agfa's position in the clinical specialities. Alliances were made with German company Hectec in the field of orthopaedics and Heartlab in cardiology. Agfa is integrating Hectec's software for orthopaedic surgical planning in its Impax for orthopaedics. In cardiology, Agfa and Heartlab, a designer of cardiac image and information management software, are developing the next generation of Agfa's Impax systems for cardiology which will be launched in 2004. At the RSNA in November 2003, Agfa unveiled Impax ES, a radiology IT solution with integrated RIS and speech reporting capabilities and the works-in-progress Impax WEB 1000 ES, which extends the benefits of web-based results distribution from radiology to cardiology and women's care.

In 2003, Agfa extended its range of dry hardcopy printers with the Drystar 5500, a high-resolution printer which offers higher throughput. This was followed at the beginning of fiscal 2004 with the introduction of the Drystar 5300, a tabletop printer designed to provide a decentralised hardcopy solution. In computed radiography (CR), Agfa introduced the new ADC M40 reusable imaging plate, offering superior image quality and longevity, according to Agfa. In women's care, Agfa introduced its new mammography systems, the Embrace CR and the fully-digital Embrace DR system. In addition, as a result of an agreement, R2 Technology's computer aided diagnosis system is now distributed as part of Agfa's digital mammography solution. 1

TABLE OF CONTENTS

• CONTENTS
• OVERVIEW
• CORPORATE HISTORY
• FOUNDATION
• RECENT CORPORATE NEWS
• MERGERS AND ACQUISITIONS
• Heartlab
• Med2Rad
• GWI
• Symphonie On Line
• Mitra
• Talk Technology
• Quadrat
• GE's Vari-X and VariCath Product Lines
• Misomex
• Sterling Diagnostic Imaging
• MINORITY INVESTMENTS
• MediVision Medical Imaging
• AGREEMENTS
• ScanSoft
• Initiate Systems
• InSiteOne
• Moore Medical
• Siemens
• Hectec
• Stratus Technologies
• MedQuist
• Hologic
• AccessPt
• Drager Medical, A Drager and Siemens Company
• EMC
• Konica Medical Imaging
• Philips Speech Processing Dictation Software
• Vidar Systems
• DiagnosticPRO plus and Sierra plus Film Digitisers
• SmartPACS
• A-Life Medical
• Misys Healthcare Systems (Sunquest Information
• Medicalis
• Medical Manager Health Systems
• Toshiba America Medical Systems
• GE Healthcare
• Philips Medical Systems
• SUPPLY AGREEMENTS
• North Network, Canada
• Medi-IT Oy - KAAPO Project
• TriPACS Project - Switzerland
• Capital Health - Canada
• Northern Ontario Digital Radiology (NORrad)
• US Government
• Queensland Health - Australia
• Premier
• PACS
• CR Products
• Film and Medical Imagers
• Centura Health
• Novation
• Adventist Health System
• Orion Medical Management
• INPHACT
• ASP Services
• Agfa Diagnostic Centre Products and Impax PACS
• INDUSTRY CONSORTIUMS
• Global Healthcare Exchange
• Digital Imaging Group
• CORPORATE STRUCTURE
• STRATEGIC FOCUS
• PRODUCTS
• INFORMATION MANAGEMENT
• Orbis Platform
• NICE User Interface
• Orbis Basics
• Orbis Care
• Orbis Medical
• Orbis RIS
• Orbis Management
• Orbis Links
• Orbis Ways
• Clinical Information Systems
• MedAr
• Radiology Information Systems
• Impax RIS for Hospitals
• Impax EL RIS
• IPlan
• MediWeb Ordering and Results
• QDoc RIS
• QPlanner
• QdReport
• RIS Business Intelligence (Cognos)
• Information Connectivity
• Impax RIS Gateway
• Reporting and Speech Recognition
• TalkStation 3.0
• TalkStationIS
• TalkStation Radiology
• TalkStation TeleDictation
• TalkStation TeleReport
• TalkStation WebTypist
• SpeechMagic
• PACS, IMAGE MANAGEMENT AND APPLICATIONS
• PACS
• Impax Entry Level (EL)
• Impax Enterprise Suite (ES)
• Integration Services Portfolio
• Impax High Availability Solutions
• Impax Integrated Reporting Solution (RIS/PACS/Speech)
• Diagnostic and Clinical Applications
• Impax ES for Radiology
• Impax ES for Orthopedics
• Impax for Orthopaedics OT 3000
• Impax ES for Women's Care
• Impax MA3000 Mammography Diagnostic Workstation
• Impax ES for Cardiology
• Impax for Ophthalmology
• Impax DS3000 Diagnostic Display Station
• Impax EL DS1000
• Image Distribution
• Impax WEB1000 5.0 ES
• Archiving and Image Management
• Impax EL Basix
• Impax EL Off-line Archive
• Cardiology Information Systems
• Ascentia
• Encompass Cardiac Network
• Encompass Review Software
• Encompass Review Station
• Encompass Results Management
• Encompass Image Management
• Encompass DVD Archive
• Encompass Web
• Encompass Interfaces
• DICOM Gateway Alternative - Cine Capture and Ultrasound Capture
• Encompass ME
• Encompass ME-e
• Encompass ELS
• Encompass ELS-e
• CardioNow
• COMPUTED RADIOGRAPHY
• CR Radiotherapy Solution
• Digitisers
• CR 75 and CR 25
• MUSCIA
• Imaging Software
• CR QS Connectivity Software
• CR QS Quality Control Software
• CR QS Special Exam Software
• QS System Software
• Cassettes/Image Plates
• CR MD4.0 General Plate
• CR MD4.1 FLFS Set
• CR MM2.0 Mammo Plate
• CR MM2.0 Mammo Cassette
• CR RT1.0 Low Dose Cassette
• CR RT1.0 Low Dose Plate
• CR RT1.5 High Dose Cassette
• CR RT1.5 High Dose Plate
• CR Accessories
• CR EasyLift
• CR Full Body Cassette Holder
• CR User Station
• CR X-Ray Shielding
• DIRECT RADIOGRAPHY
• DM1000 Digital Mammography System
• DIGITAL HARDCOPY IMAGING
• Drystar Dry Imaging Equipment
• A#Sharp
• Drystar 5300
• Drystar 5500
• Drystar 4500 M
• Drystar 4500
• Drystar Dry Media
• Wet Media
• Scopix CR 5
• Scopix DR 3
• Scopix LT 670
• Scopix LT IR B
• Scopix LT 2
• Imager Connectivity
• Linx Paxport
• Linx Paxport Cine B/W
• CONVENTIONAL IMAGING
• ID Cameras
• Digid 3000
• Curix ID
• Processors
• Curix Chemix
• Classic E.O.S. Processor
• Mamoray Classic E.O.S. Processor
• Curix 60 Tabletop Processor
• CP1000 Processor
• Daylight Systems
• Compact E.O.S.
• Mamoray Compact E.O.S. Daylight System
• Mammography Film
• Mamoray HDR-C Film
• Mamoray HDR-C Plus
• Mamoray HT Film
• Mamoray LT3 B Laser Film
• Medical Screen Films
• CP-GU
• CP-BU New
• CP-GL
• Cronex 10T
• Cronex 10TL
• Curix Opthos H
• Curix Ortho HT 1.000 G Plus
• Curix Ortho HT 1.000 L Plus
• Curix Ortho HT-L Plus
• Curix Ortho HT-G
• Curix RP1
• Curix RP2 Plus
• Ortho CP-G Plus
• Curix Ultra UV-C
• Curix Ultra UV-G
• Curix Ultra UV-G Plus
• Curix Ultra UV-L Plus
• Screens and Cassettes
• CP Cassettes
• Curix Cassettes
• Curix Ortho Screens
• Curix Blue Screens
• INTERNATIONAL ACTIVITIES
• NORTH AMERICA
• Canada
• United States
• EUROPE
• France
• Germany
• Italy
• ASIA/OCEANIA
• China
• Australia
• GLOBAL LOCATIONS
• RESEARCH AND DEVELOPMENT
• RESEARCH ESTABLISHMENTS
• RESEARCH PROJECTS
• CR 50 Digitiser
• RESEARCH AGREEMENTS
• Medicsight
• ProHealth Care
• Hologic
• FINANCIAL REVIEW - AGFA HEALTHCARE
• Summary Operating Results
• FINANCIAL HIGHLIGHTS - AGFA HEALTHCARE
• COMMENTARY
• First Quarter Of Fiscal 2005
• Outlook
• FISCAL 2004
• Agfa HealthCare Operating Results, 2003-2004 (EUR million)
• FINANCIAL REVIEW - AGFA GROUP
• FINANCIAL INDICATORS
• COMMENTARY

INDEX OF TABLES

• Summary Operating Results
• Agfa HealthCare Operating Results, 2003-2004 (EUR million)
• FINANCIAL INDICATORS

INDEX OF CHARTS

• Fig.1: Agfa HealthCare - Revenue by Product Type, Q1 2005*
• Fig.2: Agfa HealthCare - Revenue by Geographic Region, Q1 2005
• Fig.3: Agfa HealthCare - Revenue, 1999-2004 (EUR million)
• Fig.4: Agfa - Percentage of Revenue by Business Area, 2004
• Fig.5: Agfa - Percentage of Revenue by Business Area, Q1 2005