TeraRecon Receives Frost & Sullivan 2007 Market Penetration Leadership Award

SAN MATEO, CA--(Marketwire - October 30, 2007) - TeraRecon (www.terarecon.com), a leading provider of advanced visualization solutions, and previously a two-time Frost & Sullivan award recipient, received the Frost & Sullivan 2007 Market Penetration Leadership Award for demonstrating strategic excellence in product innovation, marketing and sales strategies that resulted in the both the largest gain in market share and an outstanding financial performance over the past two to three years. In conjunction with the award, Frost & Sullivan authored a case study article summarizing TeraRecon's methodologies and detailing the market findings which led to the company's selection as an award recipient. The case study is available from the TeraRecon website at: www.terarecon.com/news/press/2007/TR-F&S-Award-2007.pdf.

Frost & Sullivan's analysts stated, "TeraRecon is well underway to surpassing its major competitor and becoming the leading independent advanced visualization vendor in North America in the near future." The analysts further reported that the specialists who use TeraRecon's clinical applications consistently recognize the company's solutions as "having the best quality and delivering the highest performance, including in the key area of cardiovascular imaging. In a field where a pleasant end-user experience is critical, the positive opinions have resulted in the outstanding market adoption of the Aquarius line of advanced visualization products."

The report recognizes TeraRecon for delivering tremendous financial performance and gaining market share year after year to become "...one of the five largest advanced visualization providers in North America, and a close second-leading independent vendor in 2007, capturing an impressive 28% of revenue in the competitive medical imaging market."

Robert Taylor, TeraRecon's chief operating officer and executive vice president stated, "It's a great honor for TeraRecon to have received this award from such a reputable and impartial organization as Frost & Sullivan. While recognition for past achievements is more than welcome, we are most excited about the deployment and enhancement of the Aquarius iNtuition platform, which we believe will again redefine the advanced visualization genre. We predict that for TeraRecon, RSNA 2007 will be another defining moment in the company's history."

About Frost & Sullivan Best Practices Awards

Frost & Sullivan Best Practices Awards recognize companies in a variety of regional and global markets for demonstrating outstanding achievement and superior performance in areas such as leadership, technological innovation, customer service, and strategic product development. For more information on the Frost & Sullivan Best Practices Awards program go to http://www.frost.com/prod/servlet/meawards.pag.

About Frost & Sullivan

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit www.frost.com.

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 two-time winner of Frost and Sullivan's Innovation Award, 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 image processing 3D servers, dental and industrial cone beam CT scanners, high-performance reconstruction engines, and real-time 3D 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. Chief Operating Officer and Executive Vice President Tel: 650-372-1100 Email: