Swissray Enters Into a Distributorship Agreement for Its Direct Digital Radiographic Systems With Elscint Ltd., Haifa

Swissray Enters Into a Distributorship Agreement for Its Direct Digital Radiographic Systems With Elscint Ltd., Haifa

NEW YORK–(BUSINESS WIRE)–Aug. 31, 1998–SWISSRAY INTERNATIONAL, INC. (NASDAQ:SRMI) today announced its entry into a distributorship agreement with Elscint Ltd., Haifa Israel, (NYSE:ELT) for the distribution of Swissray’s unique, direct digital Radiographic (ddR) system, the AddOn-Multi-System.

Elscint has agreed to be Swissray’s exclusive distributor in the markets of France, Italy, Spain, United Kingdom, Belgium, Luxembourg, Poland, Hungary, Ukraine, Israel, South Africa, Brazil, Mexico and Canada. Elscint was founded in 1969 and is an advanced medical imaging company serving healthcare markets worldwide. Applying unique technologies for the advancement of healthcare imaging equipment, Elscint designs, manufactures, sells, services and networks a wide range of sophisticated computer-based medical imaging systems in the fields of Computed Tomography (CT), Magnet Resonance Imaging (MRI), Nuclear Medicine (NM) and Mammography (MAM). In 1997, Elscint Ltd. had annual sales of more than $300 million and employees in excess of 1,700 persons worldwide.

Ruedi G. Laupper, Chairman and President of Swissray International, Inc. stated, “I am excited about Swissray’s cooperation with Elscint. Elscint has an extensive know-how and expertise in the field of digital imaging and a highly qualified sales and service force. The connectivity division of Elscint provides an optimum addition to our AddOn-Multi-System in the field of communication and networking. I expect a great enhancement of sales of our AddOn-Multi-System thanks to the market penetration of Elscint in the near future. Our cooperation already showed its first success with the sale of one AddOn-Multi-System to Poland.”

Dr. Dov Maor, Vice President for Technology and Manager of the Connectivity Business Unit at Elscint, and member of the Board of Swissray International, Inc., added, “The addition of Swissray’s direct digital Radiographic system to Elscint’s product offering substantially strengthens our ability to offer Elscint customers comprehensive solutions for the Digital Radiology department. It ideally complements PACS, miniPACS and general connectivity solutions offering.”

The AddOn-Multi-System is the world’s first direct digital Radiographic (ddR) system. It is the missing link for a fully digital radiology department, and will move the industry closer to the ultimate goal: filmless radiology. The Swissray system significantly reduces operating costs and increases efficiency and productivity of radiology departments by eliminating time- consuming, labor-intensive and costly use of film, cassettes, chemicals and imaging plates.

The industry-leading AddOn-Multi-System is able to convert X-ray information directly into an image that can be used for diagnostic purposes within 20 seconds on Swissray’s SwissVision workstation. It also provides a multitude of post-processing features to enhance diagnostic information. The digital image can be transmitted via computer networks to radiology departments in- house or around the globe via the Internet. Direct digital examinations with the AddOn-Multi-System can be performed on the recumbent, sitting and upright patient.

As an innovative developer and manufacturer of x-ray technology and systems, Swissray International Inc. is a pioneer of direct digital radiography (ddR) technology. Swissray is, with its unique product line, the leader in direct digital x-ray systems and provides a comprehensive package of medical imaging informatics.

For more information about the company and its AddOn-Multi-System visit the Swissray website at www.swissray.com.

This release contains certain forward-looking statements which involve known and unknown risks, uncertainties or other factors not under the company’s control which may cause actual results, performance achievements of the company to be materially different from the results, performance or expectations implied by these forward-looking statements. These factors include, but are not limited to, those detailed in the company’s periodic filings with the Securities and Exchange Commission.

L.G. Zangani, LLC provides financial public relations services to the Company. As such L.G. Zangani, LLC and/or its officers, agents and employees, receives various forms of remuneration.

CONTACT: Swissray International, Inc., New York

Ueli Laupper

212/545-0095

or

Leonardo G. Zangani, Investor Relations

Jeanne Ferrari, Investor Relations

908/788-9660

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