Intermagnetics to Buy MRI Devices

LATHAM, N.Y., May 18 -- Intermagnetics General Corp., a Latham, N.Y.-based developer of superconducting materials, high-field magnets, medical systems and components, announced it will acquire MRI Devices Corp., a Wauwatosa, Wisc.-based private manufacturer of radio frequency (RF) coils for magnetic resonance imaging (MRI) systems, for $100 million in cash and stock.

Glenn Epstein, president and CEO of Intermagnetics, said MRI Devices will be combined with its IGC Medical Advances Inc. subsidiary, to create a global medical device company for the design, manufacture and distribution of RF coils and other MRI-related accessories.

The deal will expand Intermagnetics' product lines and diversify its customer base, Epstein said. He said the addition of MRI Devices will boost Intermagnetics' revenue to nearly $300 million and add about 20 cents a share in fiscal 2005, which begins May 31. Completion of the deal is expected early in the first quarter of fiscal 2005.

MRI Devices, with about 200 employees and calendar 2003 revenues of $47 million, sells its products and services to major OEMs -- including GE Healthcare, Siemens Medical Solutions and Philips Medical Systems -- as well as directly to hospitals, imaging centers and research institutions.

Epstein said the entire MRI Devices senior management team is expected to remain after the acquisition and assume key roles within Intermagnetics' Medical Technology sector. He said the company expects to combine the operations of MRI Devices and its subsidiary over the next several months, with engineering and operational facilities located in Waukesha and in Gainesville, Fla.

For more information, visit: www.intermagnetics.com