TeraRecon Announces Annual Sales Growth Exceeding 60% for Aquarius Product Family

SAN MATEO, CA -- (MARKET WIRE) -- March 26, 2007 -- TeraRecon (www.terarecon.com), a leader in advanced imaging processing technology and solutions, announced it has achieved greater than 60% annual sales growth worldwide in 2006 over 2005 for its Aquarius family of workstation and server-based 3D software applications. Including advanced workstation licenses and capacity for thin-client users of the AquariusNET system, the company estimates over 6,000 concurrent users of Aquarius tools are enabled in enterprise healthcare facilities around the world. These results are indicative of the strong differentiation of TeraRecon's technology and product offerings and the widespread market acceptance of its Aquarius enterprise solutions in the US and overseas.

Robert Taylor, PhD., executive vice president and chief operating officer, said, "It is clear that advanced visualization techniques have become established as a standard of care when it comes to the diagnostic interpretation of modern MDCT and MR images, and as such, a single workstation bundled with the CT scanner is no longer adequate. We are seeing extremely strong demand for our solutions to be purchased with CT scanners to provide enterprise-wide tools for the management of MDCT studies which are being used to replace more risky and expensive conventional angiographic procedures. This demand is mirrored in the PACS purchasing process as customers recognize the need for professional-grade tools for MDCT and MR as standard on the diagnostic interpretation station -- a need not readily met by PACS offerings today, but for which TeraRecon has a solution which can be easily integrated with almost all PACS offerings. TeraRecon foresees the convergence of advanced visualization and PACS into a combined market with tremendous growth potential over the next 3-5 years. We believe that the phenomenal growth we are seeing in our own business validates this interpretation of market dynamics, and that our iNtution™ platform architecture is positioned to address this convergence where the absolute best in technology and innovation is required to meet the clinical need. TeraRecon would settle for nothing less."

About TeraRecon, Inc.

TeraRecon, Inc. is a technology-driven provider of advanced imaging systems and solutions for industrial, medical and dental 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, network-attached streaming servers, 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.

Contact Information: Contact: TeraRecon, Inc. Robert Taylor, Ph.D. COO & Executive VP 650/372-1100 Email Contact www.terarecon.com