Acquisition to Expand Escalon's Leadership Role in Ophthalmic Digital Imaging
and Data Management Solutions
WAYNE, Pa., Oct. 14 /PRNewswire-FirstCall/ -- Escalon Medical Corp.
(Nasdaq: ESMC) today announced that its subsidiary, Escalon Medical Imaging,
Inc. (EMI), has signed a letter of intent to acquire substantially all of the
assets of MRP Group, Inc., a privately held ophthalmic technology solutions
provider. The transaction, which is expected to close in late October 2005, is
subject to customary closing conditions including the completion of a
definitive agreement. Terms of the acquisition were not disclosed pending
execution of a definitive purchase agreement.
Based in Lawrence, Massachusetts, MRP Group (http://www.mrpgroup.com) was
founded in 1997 and currently offers two retinal imaging systems. MRP Group
has approximately 200 systems installed at leading medical and retinal care
centers. MRP Group's product line includes the 3kx2k (6 MegaPixel) Retinal
Imaging system and the 1300 x 1030 ophthaVision Imaging System.
"We are very excited about the opportunities this acquisition presents,"
Richard J. DePiano, Escalon's Chairman and Chief Executive Officer, commented.
"MRP Group has an excellent reputation in the industry and will be a terrific
complement to our organization. We are confident that the integration of MRP
Group's retinal imaging systems with EMI's existing ophthalmic photography
product portfolio will position us to enhance our core business and secure a
leadership role in ophthalmic digital imaging and data management solutions."
"We are delighted to combine our organization with Escalon Medical," said
Matthew Carnevale, MRP Group's Founder and Chief Executive Officer. "We
believe that the integration of our operations with a well-established company
like Escalon will clearly strengthen our positions in the ophthalmic
marketplace and lay the foundation for solid, long-term growth."
Showcasing Escalon Digital Solutions
Escalon also announced today that, in collaboration with MRP Group, Inc.
and Anka Systems, Inc., it will be showcasing its Escalon Digital Solutions
(http://www.escalondigitalsolutions.com) at the American Academy of
Ophthalmology's 2005 Annual Meeting in Chicago, Illinois, October 15-18, Booth
4132.
The Company noted that Escalon Digital Solutions will unify three
ophthalmic technology solution providers, with the objective of identifying
and meeting the changing needs of clinical practices, providing
technologically innovative products, excellent customer support and improved
quality of care.
As previously announced on October 11, 2005, Escalon entered into a
non-exclusive co-marketing agreement with privately-held Anka Systems, Inc., a
leader in web-based connectivity solutions for the ophthalmic physician.
Anka's connectivity solutions are used in major eye healthcare centers and
provide seamless integration of data from various clinical modalities commonly
used in eye healthcare settings. This alliance will jointly market Escalon's
existing digital imaging hardware with Anka's connectivity solutions. By
integrating the sales and marketing efforts, the alliance will provide
economies of operation and a greater market reach, especially internationally.
About Escalon
Founded in 1987, Escalon develops, markets and distributes ophthalmic
diagnostic, surgical and pharmaceutical products as well as vascular access
devices. Drew, which operates as a separate division, provides
instrumentation and consumables for the diagnosis and monitoring of medical
disorders in the areas of diabetes, cardiovascular diseases and hematology, as
well as veterinary hematology and blood chemistry. Escalon seeks to utilize
strategic partnerships to help finance its development programs and is also
seeking acquisitions to further diversify its product line to achieve critical
mass in sales and take better advantage of the Escalon's distribution
capabilities. Escalon has headquarters in Wayne, Pennsylvania and
manufacturing operations in Long Island, New York, New Berlin, Wisconsin,
Dallas, Texas, Oxford, Connecticut and Barrow-in-Furness, U.K.
Note: This press release contains statements that are considered
forward-looking under the Private Securities Litigation Reform Act of 1995,
including statements about Escalon's future prospects. They are based on the
Escalon's current expectations and are subject to a number of uncertainties
and risks, and actual results may differ materially. The uncertainties and
risks include whether Escalon is able to improve upon the operations of
Escalon's business units, including, the integration of Drew's operations,
generate cash and identify, finance and enter into business relationships and
acquisitions, integrate and leverage those business relationships and
acquisitions, uncertainties and risks related to new product development,
commercialization, manufacturing and market acceptance of new products,
marketing acceptance of existing products in new markets, the continuity of
royalty revenue, litigation and non-recurring expenses, research and
development activities, including failure to demonstrate clinical efficacy,
delays by regulatory authorities, scientific and technical advances by Escalon
or third parties, introduction of competitive products, third party
reimbursement and physician training as well as general economic conditions.
Further information about these and other relevant risks and uncertainties may
be found in Escalon's report on Form 10-K, and its other filings with the
Securities and Exchange Commission, all of which are available from the
Commission as well as other sources.
SOURCE Escalon Medical Corp.
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Related links:
http://www.mrpgroup.com
http://www.escalondigitalsolutions.com
CONTACT:
Richard J. DePiano, Chairman and CEO of
Escalon Medical Corp., +1-610-688-6830; or Joseph Calabrese of
Financial Relations Board, +1-212-827-3772, for Escalon Medical
Corp.
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