TeraRecon Accelerates Aquarius iNtuition(TM) Deployments Following Adoption of New Engineering Methodology

SAN MATEO, CA--(Marketwire - August 6, 2008) - TeraRecon, Inc. (www.terarecon.com), a leading provider of advanced visualization and interpretation software, today announced the accelerating deployment of its Aquarius iNtuition™ suite of advanced visualization offerings, to new and installed-base customers, thanks to the adoption of a new engineering methodology.

Aquarius iNtuition version 4.3 was recently released 4 months ahead of the RSNA schedule, which the company attributed to a thorough review and revamp of the company's engineering and development methodology initiated several months ago. Highlights of the new iNtuition release include full cardiovascular CT workflow support, dual-energy processing, zero-click 'AutoBatch' processing, enterprise distribution from a fully 'browser-native' web client, and implementations of oncology and perfusion applications, all from a fully client-server architecture without requiring 'remote control' of standalone workstations to achieve distributed access to applications.

"Since its initial release, sales of iNtuition have been extremely strong, driving the double-digit Aquarius revenue growth we enjoyed in 2007 vs 2006 and the positive sales trend we have seen in 2008 to date. It is clearly the preferred solution for our advanced visualization customers. Now, with the release of iNtuition version 4.3, which is already successfully deployed in many tens of sites, iNtuition is providing an even higher level of diagnostic support from a completely thin-client platform as well as advanced workflow automation previously not available in the industry," said Robert Taylor, Ph.D., president and chief operating officer. "The feedback about the new iNtuition release has been extremely positive, and we are now fully engaged to extend our lead in terms of clinical functionality, now that we have established what is without question the best and most fully-capable client-server architecture available in the world today. With this important milestone having been achieved ahead of schedule, we are able to allocate the additional engineering resources toward an exciting expansion of our clinical capabilities"

Robert continued, "We attribute the accelerated development of iNtuition to a reorganization of our development teams, including a change in leadership, and adoption of a new software development methodology over recent months. We have devised and adopted a system derived from 'Agile' development concepts that allows for constant 'course corrections' based on frequent dialog between subject-matter experts and implementing engineers specifically conceived for the particular requirements of medical imaging advanced visualization development. As our company and product have matured, the scope of our solutions has expanded to large enterprises and we needed a new philosophy and framework for development which would provide a fast and effective channel for input from our target users, while empowering our engineering teams to develop rapidly, and with optimum relevance. Key to this process was removal of unnecessary layers between the implementing engineer and the end user, and we believe our new streamlined engineering organization is now unparalleled in the industry in terms of vision, talent and efficiency."

As a culmination of this several-month process, Vikram Simha, the company's former Chief Technology Officer, has left the company to pursue new opportunities.

In addition, Aquarius iNtuition 4.3 includes an exciting new product form-factor, the iNtuition "DUO" server.

Jeff Sorenson, Vice President of Sales, USA and Canada, explained, "The iNtuition DUO is a two-user server solution that is affordable, yet scalable and built upon our true client-server architecture. The system is capable of opening a study comprised of over 6000 slices to accommodate the most demanding clinical needs and includes all available clinical functionality without compromises -- representing an unmatched value in the marketplace today. iNtuition DUO increases TeraRecon's addressable market by providing a compelling alternative to the bundled OEM CT or MR workstation, which offers more functionality and 'anywhere' access at the price of a single workstation. In today's environment, there is virtually no case where a single workstation with a CT or MR scanner is adequate to meet the clinical need, and by combining multiple users with the flexibility of true client-server architecture, we are confident this product will be very popular as an alternative to the advanced visualization offerings normally bundled with imaging modalities."

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

TeraRecon, Inc., a leader in advanced image processing and 3D visualization techniques, provides advanced imaging systems for medical and other visualization applications based on its unique and patented image processing technologies. A four-time winner of Frost and Sullivan awards, 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 developed a unique family of powerful processors that are used in its real-time, enterprise-wide image processing solutions and real-time 3D volume rendering engines. TeraRecon is a privately held company with global headquarters in San Mateo, CA, and branch offices in Concord, MA; Tokyo, Japan; Osaka, Japan; and European Headquarters in Frankfurt, Germany.