ADAC Selected as Winner of 1998 Frost & Sullivan Market Engineering Product Line and Customer Focus Strategy Award

Business Wire, Sept 25, 1998

MILPITAS, Calif.--(BW HealthWire)--Sept. 25, 1998--ADAC Laboratories (Nasdaq:ADAC) is pleased to announce that it has been selected as the recipient of the 1998 Frost & Sullivan Market Engineering Product Line and Customer Focus Strategy Award in the Reconditioned / Refurbished Diagnostic Imaging Device Market.

Frost & Sullivan is an international marketing consulting firm that evaluates the medical industry. This award is given each year to the company that has demonstrated the best product line strategy in the marketplace and excellent leadership in customer focus. In selecting the winner, Frost & Sullivan conducted an in-depth market analysis in which candidates were judged based on the following key factors: 1) quality and range of product lines; 2) superior knowledge of customer needs; and 3) ability to meet and exceed customer expectations.

R. Andrew Eckert, CEO of ADAC, stated, "We are extremely pleased that ADAC was chosen as the recipient of this award. It further validates the success ADAC has had in expanding our presence in the refurbished equipment market. We look to continue strategically growing this business aggressively over the next two to three years."

Mahpara Burney, Medical Analyst for Frost & Sullivan, commented: "ADAC was chosen as the recipient of the 1998 market engineering strategy award for taking the lead in expanding its product line and improving customer focus. ADAC has made successful strategic acquisitions of competitors and non-competitors to expand its offerings to include reconditioning and refurbishing of other imaging equipment in addition to nuclear medicine. Supplementing this business is the Company's extensive worldwide customer service and support base that provides a broad range of services such as installation, warranty, repair, testing and training. We believe that ADAC has demonstrated an excellent understanding of the market and of its customers' needs by providing a one-stop-shop where most of a hospital's requirements can be met."

In 1997, ADAC acquired Southern Cats, Inc., a major CT and X-ray service and refurbishing company. This was followed by the 1998 acquisition of CT Solutions, Inc., a leading provider of CT equipment refurbishment and service. With these acquisitions, the company has expanded its reconditioning and refurbishing business from nuclear medicine alone to other imaging equipment.

ADAC Laboratories is the world market share leader in nuclear medicine and radiation therapy planning systems, and a leading supplier of radiology information systems. In 1996, ADAC became the first healthcare manufacturer to receive a Malcolm Baldrige National Quality Award. ADAC is headquartered in Milpitas, with its HealthCare Information Systems division in Houston.

This press release contains forward-looking statements. Factors that could cause actual results to differ materially from those contained in such forward looking statements include those factors set forth under "Business Considerations" in the Company's most recent Form 10-Q, dated June 28, 1998. All forward-looking statements are based on information available to the Company on the date hereof, and the Company assumes no obligation to update such statements.