Direct Medical Systems in agreement with Chinese government for
distribution and manufacturing of diagnostic imaging products
25 February 2005
SAN RAMON, Calif, USA /PRNewswire/ -- Direct Medical Systems, LLC (DMS)
of San Ramon has announced the signing of an exclusive agreement to import
and distribute medical diagnostic equipment such as magnetic resonance
imaging systems (MRI), computed axial tomography scanners (CT), ultrasound
systems and other products from a joint venture between a manufacturing
company in China and the government of The People's Republic of China.
This agreement gives DMS the rights to market and distribute their
equipment in all countries outside of China. DMS expects to receive FDA
clearance to market in the United States by the end of this year.
DMS has also signed an exclusive agreement to provide manufacturing
services that will involve DMS offering cost reductions to US companies by
manufacturing their products at our R&D and manufacture facilities in China.
Over the past ten years there has been a consolidation of competitive
companies in this industry resulting in less competition and higher prices.
DMS plans to offer their products through national and regional distributors
in this country and abroad who will provide lower prices while maintaining
the quality of service and support the industry has come to expect. DMS also
has an exclusive distribution sales channel of over 220 direct medical sales
representatives in China.
Manufacturing services will be offered directly through DMS'
Manufacturing Division. "China is poised to become the next big player in
this industry as well as in the electronics, entertainment and automotive
industries and we at DMS are thrilled to be a part of this new economy,"
said Mark Falkowski, President and CEO of Direct Medical Systems.
The total world market for diagnostic imaging equipment is estimated to
be over $16 billion in 2005 with the United States accounting for
approximately 50% of the total market. DMS, through its distributor network,
plans to become a major competitor in this market by offering customers low
cost alternatives to those offered by traditional suppliers of this
equipment. The company expects as much as 50% of its revenue will come from
the engineering, redesign and manufacturing of other companies' products in
For more information, please visit the Direct Medical Systems website at
Source: Direct Medical Systems