MeVis Medical Solutions AG

Earnings Release • Feb 19, 2008

News Details

Corporate | 19 February 2008 15:08

MeVis Medical Solutions releasing preliminary figures for 2007:

MeVis Medical Solutions AG / Final Results/Preliminary Results

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Foundations for future growth laid

• License sales volumes in mammography segment up 60 percent
• Recruiting for software development projects proceeding according to plan
• Revenues and earnings affected by exceptionals in the fourth quarter

Bremen, February 19, 2007. On the basis of its preliminary figures, MeVis
Medical Solutions AG [ISIN: DE 000A0LBFE4; WKN: A0LBFE] achieved a roughly
60 percent increase in the volume of license sales in the digital
mammography segment via its OEM partners Siemens AG and Hologic Inc. in
2007. A specialist in disease-oriented software products for image-based
medicine and the market leader in breast cancer diagnostics and early
detection, MeVis generated revenues of around EUR 7.3 million in 2007
(previous year: EUR 8.3 million).

The decline in revenues over the previous year was very predominantly due
to non-recurring effects which primarily arose in the fourth quarter of
2007. Following the acquisition of OEM partner Invivo Corp. by Philips NV
in 2006, the billing system and in consequence revenue recognition with
Invivo was changed at the end of 2007. As a result, the billing date for
software sold to Invivo may be delayed compared with the previous
situation. Thus, revenues expected for the fourth quarter of 2007 have been
pushed back into 2008. However, the volume of software sold via Invivo rose
substantially in the year under review. 'We assume that this favorable
trend will continue in 2008 as well,' says Dr. Carl J.G. Evertsz, CEO of
MeVis Medical Solutions AG.

A substantial discount was granted to OEM partners in the digital
mammography segment in 2007 for the first time in five years after a period
of steady growth in the interests of a sustained boost in sales to increase
volumes. Although substantially more licenses were sold in 2007 than in
2006, it was not possible to fully recoup the effects of the price cut. The
weak US dollar also took its toll on revenues. Roughly 80 percent of the
Bremen-based company’s revenues are denominated in US dollars, while its
costs are primarily invoiced in euros. These effects were mostly dampened
by means of currency hedging. For 2008, a sum of around USD 3 million has
already been hedged. In addition, the non-recurring expenses in connection
with the Company’s stock market flotation, which cannot be deducted from
equity in the IFRS consolidated financial statements, also left traces.

MeVis Medical Solutions is primarily engaged in the development and
marketing of innovative high-quality software products for image-based
medicine. The average development period is one to three years. The
products are sold via OEM partners for whom this software is primarily
developed. Says Evertsz: 'The close collaboration underscores the great
strategic importance of these partnerships for both MeVis Medical Solutions
and the OEM partners.' In 2008 alone there are plans for three new
products to be launched. Recruiting forms a critical determinant for the
successful development of new products at MeVis Medical Solutions. Despite
the general scarcity of qualified staff in the labor market, it was
possible to increase the Company’s headcount significantly from 60 at the
end of 2006 to 101 as of December 31, 2007. This also included recruiting
for the newly established US subsidiary MeVis Medical Solutions Inc. in
Wisconsin. As these additional scheduled staff costs are not being
capitalized in 2007, personnel expenses were substantially higher in the
third and fourth quarters.

Despite these effects, the company assumes that it broke even in 2007
(previous year: EUR 4.7 million). '2007 was a successful year for us
despite difficult economic conditions in the United States, which is a
crucial market for medical technology, and the weak US dollar,' says
Evertsz. 'We achieved important strategic goals and, via our stock market
flotation, managed to create the basis for developing further innovative
products. Thanks to additional recruiting, we will be able speed up product
development. Numerous new products will be launched on the market in 2008
and 2009. We are already a strategic partner for leading international
medical technology OEMs such as Hologic, Siemens and Partner and plan to
extend these joint activities and gain further OEM partners.'

Turning to 2008, the Management Board projects substantial growth in
revenues to EUR 9.0 - 10.0 million and EBIT of EUR 2.2 - 2.6 million.
After-tax earnings are expected to amount to in between EUR 3.0 to 3.3
million.

The final figures and the 2007 annual report will be published on April 25,
2008.

Fabian Lorenz, Grit Pauli
HOSCHKE & CONSORTEN Public Relations GmbH
Tel: 040-36 90 50-56 /-31
E-Mail: f.lorenz@hoschke.de; g.pauli@hoschke.de

19.02.2008 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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