TeraRecon and Hitachi Medical Systems America Begin Marketing and Reseller Collaboration

SAN MATEO, CA -- (MARKET WIRE) -- November 22, 2006 -- Hitachi Medical Systems America (HMSA) and TeraRecon have entered into collaboration for HMSA to offer TeraRecon's Aquarius workstations and client-server image-management products in conjunction with HMSA's sales of MR and CT products in North America. With over 1,500 MR systems installed in the United States, HMSA is the leading provider of outpatient MR solutions, and through this agreement with TeraRecon, will be able to offer a proven and market-leading portfolio of advanced image management solutions to the company's outpatient imaging customers.

Sheldon Shaffer, Vice President and General Manager of Magnetic Resonance and Computed Tomography for HMSA, states: "TeraRecon's Aquarius product line offers our customers a proven suite of advanced clinical applications and workflow solutions that perform at the highest level. Through this collaborative effort with TeraRecon, HMSA will leverage TeraRecon's established global reputation, advanced visualization technologies and clinical thought leaders to provide our customers with workflow enhancements which are essential to the outpatient imaging setting."

Robert Taylor, Chief Operating Officer and Executive Vice President for TeraRecon, explains, "Hitachi Medical Systems America has a long and proven track record in outpatient imaging, as demonstrated by their market-leading position as an outpatient MR provider. Imaging workflow in such an outpatient setting can benefit tremendously from the storage, softcopy review, distribution, and advanced image-processing tools for both CT and MR offered by TeraRecon, and we believe that this new relationship with HMSA will truly be a great benefit to HMSA's installed base and future customers. We are very excited to embark upon this initiative together."

About TeraRecon, Inc. (www.terarecon.com)

TeraRecon, Inc. is a technology-driven provider of advanced 3D imaging systems for medical and other visualization applications, with solutions based on its unique and patented image processing technologies. The company has developed a leading portfolio of products that advance the performance, quality, functionality, and integration of image processing and 3D visualization systems. Founded in 1997, TeraRecon has developed a unique family of powerful processors that are used in its real-time diagnostic workstations, enterprise-wide 3D imaging servers using thin-client PCs, color Doppler ultrasound systems, mini gamma cameras, Dental CT scanners, high performance reconstruction engines, and real-time volume rendering hardware engines. TeraRecon is a fast growing, privately held company with headquarters in San Mateo, CA, and branch offices in Concord, MA, Tokyo, Japan, Osaka, Japan, and Trondheim, Norway.

About Hitachi Medical Systems America, Inc:

Hitachi Medical Systems America, Inc. markets premium and high performance magnetic resonance imaging systems of Hitachi Medical Corporation, Tokyo, Japan. The company has 1,500 Magnetic Resonance Imaging systems installed throughout the United States and over 3,100 Open MRI systems installed worldwide. HMSA first established a leadership position in the medical industry with Open MRI systems and has expanded their modality offerings to include the Sceptre® line of PET and PET/CT, the CXR™ line of multi-slice CT systems, and the HI VISION™ line of ultrasound systems.

Hitachi, Ltd. (NYSE: HIT), headquartered in Tokyo, Japan, is a leading global electronics company, with approximately 356,000 employees worldwide. Fiscal 2004 (ended March 31, 2005) consolidated sales totaled 9,464 billion yen ($80.9 billion). The company offers a wide range of systems, products and services in market sectors, including information systems, electronic devices, power and industrial systems, medical imaging equipment, consumer products, materials and financial services.

Contact Information: Contact: Phil Chang Hitachi Medical Systems America, Inc. 1959 Summit Commerce Park Twinsburg, OH 44087 330/425-1313 Ext. 4510 Email Contact Robert Taylor, Ph.D. TeraRecon, Inc. COO & Executive VP 650/372-1100 Email Contact