MeVis Medical Solutions AG

Earnings Release • Apr 14, 2008

News Details

Corporate | 14 April 2008 18:36

MeVis Medical Solutions confirms preliminary figures for fiscal 2007

MeVis Medical Solutions AG / Final Results

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MeVis Medical Solutions confirms preliminary figures for fiscal 2007:
Demand for software solutions for image-based medicine remains high

• Sales EUR 7.9 million, EBIT EUR 0.5 million (EBIT pre IPO costs: EUR 1.5
million)
• Strong license sales in 2007
• Sharp increase in revenues and earnings planned for 2008

Bremen, April 14, 2008 – MeVis Medical Solutions AG [ISIN: DE000A0LBFE4;
WKN: A0LBFE] has presented the final figures for the fiscal year 2007.
License sales in the digital mammography segment, which are generated
through the company’s OEM partners, Siemens AG and Hologic Inc., were
boosted by approx. 60 percent. In 2007, the specialist in software products
for image-based medicine and market leader in software for the early
detection of breast cancer generated total sales of approx. EUR 7.9 million
and EBIT of EUR 0.5 million (approx. EUR 1.5 million before IPO expenses).
The Management Board projects an increase in sales to at least EUR 9.0 -
10.0 million and EBIT of at least EUR 2.5 million for 2008. These
projections are based on the growing demand for existing products and the
introduction of new software products in fields such as neurosurgical
planning, diagnosis and biopsy of prostate cancer and automatic detection
and therapy monitoring of lung cancer. On the other hand, the company will
incur development expenses for many new products that will be launched in
the market in the coming years.

As announced on 19 February 2008, the decline in sales (previous year: EUR
8.3 million) and EBIT (previous year: EUR 4.7 million) is primarily
attributable to non-recurrent effects. These include payments in
conjunction with the IPO in an amount of approx. EUR 1 million as well as
modified billing procedures applied by OEM partner Invivo Corp. Due to the
latter’s takeover by Philips NV., sales planned for the fourth quarter of
2007 will be postponed by three to six months. Sales were also impacted by
the USD exchange rate, even though the extent of these effects have been
mitigated through currency hedges. Price discounts, which were granted to
the OEM partners for the first time in five years, also had an impact on
sales revenues. On the other hand, they clearly supported the sale of
larger volumes; in the digital mammography segment, a much higher number of
licenses was sold than in 2006.

The expansion of the workforce is key to the successful development of new
products and the resulting increase in sales and earnings. Despite the
general shortage of qualified labour, MeVis Medical Solutions clearly
increased the number of employees, especially those with an
interdisciplinary background from IT, engineering, physics and mathematics
from 73 to 113 in 2007, thus laying the foundation for faster growth. These
scheduled additional expenses were not capitalised in 2007. 'While this led
to a sharp increase in personnel expenses in the third and fourth quarter,'
said Dr. Carl J.G. Evertsz, CEO of MeVis Medical Solutions AG, 'it will
quickly pay off based on an average development phase of one to three years
for our high-margin products.' The above effects explain the decline in the
operating. Net profit for the year after taxes amounted to EUR 0.1 million.

'Our medical expertise and selective investments in research and
development give us a clear competitive edge,' said Dr. Carl J.G. Evertsz.
The planned product launches will now enable the company to reap the fruits
of its development efforts. For instance, the successful DynaCAD software,
for which only a customised application for magnetic resonance imaging of
the female breast has existed so far, will be complemented by two other
customised solutions, i.e. DynaCAD Neuro MRT for the nervous system and
DynaCAD Prostate for prostate diagnosis and biopsy. The new tomosynthesis
software which will take mammography to a new level is already in the
clinical trial phase in the USA and Europe. MeVis projects the commercial
market launch for early 2009 at the latest.

The signs are good for the company’s continued growth and the expansion of
its product portfolio. Another step in this direction was taken by MeVis in
April 2008, when the company acquired the Pulmonary Computed Tomography
(CT) Business from Hologic R2, Inc. Based on the acquired software,
intellectual property and patents, the company aims to expand its portfolio
in the epidemiologically important field of pulmonary diseases, especially
lung cancer. 'We are already an important strategic partner to global
market leaders in medical engineering such as Siemens, Hologic and
Invivo/Philips. The acquisition makes us even more attractive and expands
our customer base even further,' said Carl J.G. Evertsz. 'To continue to
live up to this position, we must stay at the very forefront of innovation.
This also includes expanding our product portfolio through acquisitions
wherever this makes sense.' Liquid funds in an amount of EUR 28.5 million
at year-end this is equivalent to approx. EUR 16 per share mean that
the company has the financial capability to achieve its strategic
objectives.

The 2007 Annual Report is scheduled to be published on April 25, 2008.

About MeVis Medical Solutions
MeVis Medical Solutions AG was founded in Bremen in 1997, and is one of the
world’s leading independent manufacturers of innovative, high-quality
software products for image-based medicine, in particular digital
radiology. The company develops and markets specialized, proprietary
software solutions to support the screening, diagnosis, intervention, and
surgery for specific clinical conditions, particularly in the areas of
oncology, neurology, and surgery. MeVis Medical Solutions primarily markets
its products through the world’s leading companies in the medical
technology market. The company has about 100 employees and is listed in the
Prime Standard of the Frankfurt Stock Exchange since November 2007.

Company Contact:
MeVis Medical Solutions AG
Dr. Olaf Sieker, CFO
Tel: +49 421 22495-36
E-mail: olaf.sieker@mevis.de

Press and Investor Relations:
HOSCHKE & CONSORTEN Public Relations GmbH
Fabian Lorenz, Grit Pauli
Tel: +49 40 3690 50-56 / -31
E-mail: f.lorenz@hoschke.de; g.pauli@hoschke.de

14.04.2008 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

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