MeVis Medical Solutions AG

Earnings Release • May 27, 2008

News Details

Corporate | 27 May 2008 08:43

MeVis Medical Solutions with record revenues in the first quarter of 2008

MeVis Medical Solutions AG / Quarter Results

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MeVis Medical Solutions with record revenues in the first quarter of 2008:
Growth strategy successfully continued

• 34.6 percent increase in revenues to EUR 2.4 million
• As expected, EBIT down slightly due to growth related operational
expenses
• 86.7 percent increase in consolidated net profit to EUR 0.4 million
• Growth forecast for 2008 confirmed by the Management Board

Bremen, May 27, 2008 - MeVis Medical Solutions AG [ISIN: DE000A0LBFE4]
successfully continued its growth strategy in the first three months of
this year. At EUR 2.4 million, the spe-cialist in software for
medical-imaging technology reported a 34.6 percent increase in reve-nues
over the same period one year earlier (EUR 1.8 million), thus achieving a
new record in this quarter. 'We got off to a good start in 2008. The trend
in sales volume shows the strength of our existing product portfolio in the
market.' says Dr. Carl J.G. Evertsz, President and CEO of MeVis Medical
Solutions. 'Roughly 89 percent of our revenues were generated in the US
market, where we hold a strong market position thanks to the partnerships
that we have forged with leading medical technology OEMs. Therefore, we are
able to partake strongly in current market growth. Our aim is to both
extend this close collaboration and simultaneously gain further OEM
partners for new products.' With revenues of EUR 1.8 million, the Digital
Mammography segment performed particularly well. The number of licenses
sold, which is independent of exchange rate fluctuations, increased by 58
percent year on year. In the segment Other Diagnostics, the number of
licenses sold rose by 25 percent over 2007, contributing EUR 0.6 million to
total revenues.

EBIT in the first quarter of 2008 came to EUR 0.3 million (previous year:
EUR 0.6 million). 'The reason for the decline over the previous year is the
systematic implementation of our growth strategy and the related capital
spending efforts and ensuing expenses,' explained Dr. Olaf Sieker, CFO of
MeVis Medical Solutions. In particular, this included additional recruiting
expenses. In contrast to the previous year, due to the stock market
flotation additional expenses were incurred and basic financing was paid to
the non-profit research institute MeVis Research GmbH.

The Company’s headcount has almost doubled over the year-ago period to 139.
Even so, personnel expenses rose by only around one quarter due to the
initial capitalization of development expenses in accordance with the
requirements under IAS 38. The capitalized personnel expenses relate to the
development of numerous new products, which are to be launched on the
market between 2008 and 2010. Explains Sieker: 'In the near future capital
spending on our richly filled product pipeline is going to have a positive
impact on sales and earnings.'

Due to the proceeds from the stock market flotation, net financial results
increased to EUR 0.4 million in the first quarter of 2008. As a result,
consolidated net profit for the period surged by 86.7 percent year on year
to EUR 0.4 million (previous year EUR 0.2 million), equivalent to EUR 0.37
per share. As of March 31 of this year, total liquidity amounted to EUR
25.5 million, equaling liquidity per share of approximately EUR 14.

A further milestone in MeVis Medical Solutions’ growth strategy is the
acquisition of the lung CT software suite 'R2 Image Checker CT' from
Hologic Inc. in April of this year. The Company has announced plans to
increase its scope of activities in the future and to supplement its
software for breast cancer diagnosis and early detection, and the planning
of liver surgery with software solutions for other disease areas such as
prostate and lung cancer as well as for the planning of brain surgery. The
newly acquired lung CT software is approved by the US Food and Drug
Administration (FDA) and should start contributing to the Company’s top
line as of the third quarter of 2008. The technology acquired will be
further developed and marketed by the Company’s US subsidiary MeVis Medical
Solutions, Inc. It will form a key part of the ex-tensive 'MeVis-Visia-Lung
CT' software suite for diagnosing diseases of the lung and for
pre-operative planning of lung surgery. Says Evertsz: 'In this way, we will
be able to additionally reinforce our strong market position as an
independent vendor of disease-oriented software products for image-based
medicine.'

The Management Board confirms that the Company is still on track to meeting
its full-year targets of revenues of at least EUR 9.0 million and EBIT of
at least EUR 2.5 million.

The full interim report for the first quarter of 2008 is available at the
Company’s website at http://www.mevis.de/mms/Finanzberichte.html.

About MeVis Medical Solutions:
MeVis Medical Solutions AG is one of the world’s leading independent
producers of software products for medical-imaging technology, particularly
digital radiology. Over the past few years, there has been an enormous
increase in the complexity and volume of medical image data derived from
imaging modalities such as computer tomography (CT) and magnet resonance
tomography (MRT). MeVis products analyze and process this data in such a
way as to provide medical practitioners with crucial information on the
diseases and organs in question for early detection, diagnosis and
intervention in the areas of oncology, neurology and surgery. The Company
develops its software solutions in close cooperation with medical experts
worldwide, and with the world’s leading original equipment manufacturers
(OEMs) in the medical technology sector and primarily markets this software
via these OEM part-nerships.

Company contact: MeVis Medical Solutions AG, Dr. Kai Holtmann,
Tel: +49 421 22495-63, E-mail: kai.holtmann@mevis.de
Press contact: HOSCHKE & CONSORTEN Public Relations, Fabian Lorenz, Grit
Pauli, Tel: +49 40 3690 50-56 /-31, E-mail: f.lorenz@hoschke.de;
g.pauli@hoschke.de

27.05.2008 Financial News transmitted by DGAP

Language: English
Issuer: MeVis Medical Solutions AG
Universitätsallee 29
28359 Bremen
Deutschland
Phone: +49 421 330 74-0
Fax: +49 421 330 74-50
E-mail: office.mms@mevis.de
Internet: http://www.mevis.de
ISIN: DE000A0LBFE4
WKN: A0LBFE
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Stuttgart, München, Düsseldorf

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