ELEKTA ACQUIRES 3D LINE MEDICAL SYSTEMS

PRESS RELEASE
Stockholm, March 23, 2007

Elekta, world leader in advanced radiation therapy, comprehensive cancer management and non-invasive treatment of brain disorders, today announced the acquisition of 3D Line Medical Systems S.r.l. Through this acquisition, Elekta adds a highly qualified R&D group specialized in stereotactic radiosurgery and dynamic IMRT treatments as well as a product portfolio of advanced equipment and treatment planning software systems for performing radiation therapy with extreme precision and optimized dose distribution.

Subject to customary closing conditions, Elekta will pay EUR 10 M in cash for assets in 3D Line Medical Systems (3D Line) related to radiation therapy and up to a maximum of EUR 8 M, based on future performance over the coming 3 years. Elekta expects to consolidate 3D Line into its accounts from May 1, 2007.

3D Line was founded in Italy in 1991 by the neurosurgeon Prof. Cesare Giorgi and three computer scientists Davide Casolino, Marco Luzzara and Enrico Ongania. The company has 35 employees and consultants, of whom most are based in Milan, Italy. Among the 3D Line technologies commercially available today, are the ERGO++, a specialized treatment planning system for stereotactic radiation therapy and dynamic IMRT and also the DYNART™ series of micro-sized multi leaf collimators. In 2006, 3D Line’s net sales totaled EUR 6 M with a moderate profit.

“3D Line is one of the world’s most innovative and competent companies in supplying hardware and software for linear accelerator based stereotactic radiosurgery and dynamic IMRT treatment and we see a strong potential in becoming part of the Elekta Group, the pioneers of radiosurgery. The 3D Line development team, with strong experience in highly sophisticated dynamic treatments, will be able to further enhance Elekta’s product portfolio both through the current products and by the planned joint development”, commented the founders of 3D Line during today’s signing ceremony.

Building on the success and proven clinical benefits of image guided radiation therapy (IGRT), there is an increasing market demand for complete stereotactic add-on solutions, both from users who want to start a stereotactic program on limited basis and from users who want to ensure that they have a fully multifunctional linear accelerator system which could also be used for the most advanced treatments.

Already integrated in Elekta Axesse™, the most advanced robotic image guided stereotactic treatment management system from Elekta, 3D Line technology will form a platform for further integration and development to meet the demand from advanced radiation oncology programs for integrated, open architecture solutions for enhancing precision and accuracy in radiation therapy.

“3D Line’s current products as well as the R&D pipeline fit extremely well into the Elekta Group and the acquisition is an important step in the further advancement of radiation therapy”, says Tomas Puusepp, President and CEO of Elekta. “3D Line’s cutting edge technology for dynamic beam shaping, arc treatment and stereotactic treatment planning is an excellent addition to Elekta’s world-leading solutions for advanced radiation therapy and with the increased global sales reach within Elekta, we will be able to exploit the increasing demand for these products”, Tomas Puusepp concludes.

Roberto Pellegrini, CEO of 3D Line Medical Systems, says: “The strong synergies between 3D Line and the Elekta Group both in radiation therapy and radiosurgery warrants a successful future of the whole team. The highly motivated and creative Italian spirit of 3D Line has always given rise to alternative and unsurpassed solutions; the combination with the high technology always promoted by Elekta has already started to generate unique solutions, to the benefits of physicians and patients all over the world”, Roberto Pellegrini concludes.


******