MeVis Medical Solutions AG

Earnings Release • Feb 19, 2008

News Details

Ad-hoc | 19 February 2008 15:02

MeVis Medical Solutions releasing preliminary figures for 2007

MeVis Medical Solutions AG / Final Results/Preliminary Results

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by
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The issuer is solely responsible for the content of this announcement.

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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 diagnosis and early
detection, MeVis Medical Solutions 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. 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. The company assumes that this
favorable trend will continue in 2008 as well. In 2007 a substantial
discount was granted to OEM partners in the digital mammography segment 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 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 also left traces.

The number of employees, a critical determinant for the successful
development of new products, rose substantially from 60 to 101. This also
included recruiting for the newly established US subsidiary MeVis Medical
Solutions Inc. in Wisconsin.
As these additional scheduled staff costs are not yet 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). Turning to 2008, MeVis Medical Solutions
expects revenues of EUR 9.0 to 10.0 million and EBIT of EUR 2.2 to 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.

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Information and Explaination of the Issuer to this News:

'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 Dr. Carl J.G. Evertsz, CEO of MeVis Medical
Solutions AG. '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.'

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

End of News DGAP News-Service

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