Sectra and Philips sign large mammography modality acquisition deal

Sectra and Philips sign large mammography modality acquisition deal


  · Sectra invites media, financial analysts and investors to an
international press conference today, 11.30 a.m. CET, at Operaterassen
in Stockholm, Sweden. It is also possible to participate by telephone or
on the Internet, see details below.

Sectra (http://www.sectra.com/) (NASDAQ OMX Stockholm: SECT B) and Royal
Philips Electronics (AEX: PHI, NYSE: PHG) have signed an agreement under
which Philips will acquire Sectra's mammography modality operations. The
cash purchase consideration amounts to EUR 57.5 million on cash and
debt-free basis. The agreement also includes an additional possible
earn-out EUR 12.5 million in accordance with specially agreed terms and
conditions.

Through this deal Sectra's Medical Systems business area gains a
distinct approach towards medical imaging IT.

“This is an excellent transaction for all parties. Sectra will free up
resources and funds that can be used to develop and expand our
operations in medical imaging IT, in which we are among the major
companies in the world for products for the management of digital
radiology images,” says Jan-Olof Brüer, President and CEO of Sectra AB.
“Philips will acquire a unique and competitive product and technology.
The MicroDose modality operations and customers will benefit from the
resources and knowledge that Philips, one of the world's leading
suppliers of radiology equipment, will bring to the development of the
product offering.”

Sectra has developed and brought the MicroDose Mammography modality to
the market. For the benefits of millions of women it provides
high-quality breast cancer detection at half the radiation compared to
all other mammography modalities.

“Our MicroDose technology will now save even more women lives, since it
will be much faster spread around the globe through Philips' vast
distribution network”, adds Jan-Olof Brüer.

The transaction comprises Sectra's mammography modality operations
worldwide, except for Australia and New Zeeland where Sectra will
continue to sell and service Sectra MicroDose Mammography under a
separate distribution agreement with Philips.

The mammography modality operations include the legal entity Sectra
Mamea AB and modality operations in Sectra's sales and service
organizations. Approximately 110 employees are expected to transfer with
the business. Sectra Mamea AB had sales in the most recent financial
year of SEK 127 million. This transaction will have a positive impact on
the Sectra Group's operating profit for the current financial year and
the transaction, excluding the possible earn-out, is estimated to
generate a capital gain in terms of earnings for Sectra of about SEK 300
million after tax.

The additional possible earn-out based purchase consideration will
become due if specially agreed terms and conditions are achieved over a
period of five years from the first calendar quarter after the date of
closing. The transaction is subject to certain contractual and other
closing conditions. The completion of the transaction is expected to
occur during the third calendar quarter of 2011.

Focus on medical IT
Sectra's Medical Systems business area has about 530 employees and
reported sales of SEK 831 million for the financial year 2010/2011.
Radiology IT, which is Medical Systems' largest product area,
represented 85% of sales.

“Through this transaction, we will gain a more distinct approach toward
medical imaging IT, the area in which we have our core competence. We
will continue to work with what we are best at: providing our customers
with IT solutions that enhance the efficiency of medical care, optimize
production and contribute to improved quality of care,” says Torbjörn
Kronander, President of Sectra's Medical Systems business area.

Medical Systems will focus on continued profitable growth in medical
imaging IT, in which IT systems for the management of mammography
images, Sectra Breast Imaging PACS, will remain one of the core areas.

The information in this press release is such that Sectra AB (publ) is
obligated to disclose in compliance with the Swedish Financial Markets
Act. The information was submitted for publication on June 27, 2011, at
08:00 am (CET).

QUESTIONS & ANSWERS

Further information about the transaction and how it affects Sectra's
customers, operations and financial position is available on Sectra's
website:

  · Q&A customers (http://www.sectra.com/philips-mamea)
  · Q&A investors and
journalists (http://www.sectra.com/philips-mamea-pr), available from
1:00 pm (CET) today.

INVITATION TO PRESS CONFERENCE

Sectra invites media, analysts and investors to an international press
conference today, June 27, 11.30 a.m. CET, at Operaterassen in
Stockholm. To participate at Operaterassen, please visit
www.financialhearings.com or send an email to
hearings@financialhearings.com (hearings@financialhearings.com). You can
also participate in the press conference on the Internet through
www.financialhearings.com (http://media.fronto.com/streaming/sectra/1106
27/) or
www.sectra.com (http://www.sectra.com/corporate/investor/financial_infor
mation/financial_hearings.html) as well as by telephone. Dial in phone
numbers: SWE +46 (0)8 5051 3792, UK +44 (0)20 7136 6285, code: 3314184

Jan-Olof Brüer, CEO Sectra AB and Torbjörn Kronander, President Sectra's
Medical Systems operation will attend the conference. After the
presentations questions can be asked.

ADDITIONAL INFORMATION
Contact Helena Pettersson, Chief Press and Investor Relations Officer
Sectra AB, ph: +46 706 27 52 04

Pictures:
http://flickr.com/photos/sectramedicalsystems (http://flickr.com/photos/
sectramedicalsystems)
Press room:
http://www.sectra.com/medical/press/ (http://www.sectra.com/medical/pres
s/)