Inverness Medical Innovations acquires assets of First Check Diagnostics

19 February 2007

Waltham, Mass., USA. Inverness Medical Innovations, Inc. (AMEX:IMA), a leading manufacturer and marketer of rapid diagnostic products for the consumer and professional markets, has acquired substantially all of the assets of First Check Diagnostics LLC, a privately held diagnostics company, for approximately $25 million in cash. In addition, Inverness will pay an earn out to First Check equal to the incremental revenue growth of the acquired products for 2007 and for the first nine months of 2008, as compared to the immediately preceding comparable periods. First Check had 2006 revenues of approximately $11 million and has been operating profitably.

First Check, headquartered in Lake Forest, California, is the market leader in the rapidly-growing field of home testing for drugs of abuse, including marijuana, cocaine, methamphetamines and opiates. In addition, it offers tests, also sold through retail channels, for alcohol abuse, cholesterol monitoring, and colon cancer screening.

Commenting on the agreement, Mr. Ron Zwanziger, CEO of Inverness said, "We are very pleased to acquire the First Check business, with its position as the leader in the over-the-counter drugs of abuse testing market. This area has exhibited rapid rates of growth and has strong potential for continued growth. The ability to put drug testing in the hands of the consumer is a powerful tool in the fight against drug abuse, and aligns well with Inverness' desire to put diagnostics within the reach of all." Inverness intends to continue First Check's support of Project 7th Grade and its efforts to reduce drug use among today's youth.

Commenting on the agreement, Mr. Steve Moak, CEO of First Check said, "We are extremely proud of the achievements that we have made at First Check. Home drug testing is a critical tool in protecting children from drugs and I believe that Inverness has the resources and experience as a leader in OTC diagnostics to get these products into more homes. I wish Inverness much success in achieving this important goal."

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