TUCSON, Ariz., March 30 /PRNewswire/ -- Ventana Medical Systems, Inc.
(Nasdaq: VMSI), the leading company in supplying automated instrument-reagent
systems to histology labs, today announced an agreement with AccuMed
International, Inc. (Nasdaq: ACMI) to develop an automated cellular image
analysis system to assist pathologists in analyzing cancer and infectious
diseases.  The system will be used to quantitate immunohistochemistry (IHC)
and in-situ hybridization (ISH) stained samples prepared by Ventana's
instrument-reagent systems.
    "We are very excited about our collaboration with AccuMed," commented
Chris Gleeson, Ventana's President and Chief Executive Officer.  "After
discussions with a number of image analysis companies, we selected AccuMed
because of their imaging platform and imaging software capabilities.  We
believe their technologies are the best fit with the needs of our customer
base.  We will launch a quantitative IHC automated image analysis system later
this year that we believe will be the most advanced system available.  By
optimizing the image analysis system and our staining reagents we expect to
achieve more accurate and reproducible results than is achievable with other
image analysis systems or manual reading methods."
    Paul Lavallee, AccuMed's Chairman and Chief Executive, commented that
"... the combination of AccuMed's automated and quantitative imaging
technology and Ventana's sales and marketing strengths to histology labs will
enable both companies to participate in the potentially attractive market for
quantitated IHC and ISH image analysis."  Mr. Lavallee added, "Ventana is an
ideal collaborator for AccuMed in surgical pathology given the strength of
their market position and the size of their direct sales force.  We are in
discussions with other potential distribution partners to develop automated
imaging systems for other markets."
    In explaining Ventana's decision to develop and market an image analysis
product, Mr. Gleeson noted, "We believe that image analysis will become an
important work cell in the histology lab.  Our decision to enter this market
is consistent with our strategy of competing in all work cells in histology
where automation can improve the consistency and quality of information
provided to the pathologist.  We expect the quantitated IHC image analysis
market to grow due to the clinical value of quantitating IHC stains coupled
with attractive reimbursement in the United States.  Our initial product
release will be capable of quantitating all the common stains used on the
approximately 180,000 new breast cancer cases that occur in the U.S. each year
including estrogen receptor status, progesterone receptor status,
proliferation status, Her-2/neu receptor status and ploidy status.  Later
product releases will quantitate ISH stains including our gene amplification
tests for Her-2/neu status which complements our IHC test."
    Mr. Gleeson noted that the size of the development funds payable by
Ventana to AccuMed was not a financially material event for Ventana.

    Safe Harbor Statement:  Statements in this press release which are not
strictly historical are "forward-looking" statements that are made pursuant to
the Safe Harbor provisions of the Private Securities Litigation Reform Act of
1995.  Forward-looking statements involve known and unknown risks, which may
cause the company's actual results in the future to differ materially from the
expected results.  The risks and uncertainties that may affect the results of
the company's business may include general economic conditions, market
acceptance of new automated histology products, continued success in asset
management and other factors that are described in the company's specific
filings with the Securities and Exchange Commission.

    Ventana develops, manufactures and markets instrument/reagent systems that
automate tissue preparation and slide staining in histology laboratories
worldwide.  Ventana's systems are important tools used in the diagnosis and
treatment of cancer and infectious diseases.
    For more information on Ventana Medical Systems, Inc. via facsimile at no
additional cost, simply dial 1-800-PRO-INFO and enter the stock symbol "VMSI".

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