Medrad and Possis Medical to merge

18 February 2008

Bayer HealthCare affiliate Medrad, Inc and Possis Medical, Inc. have announced that they have agreed to merge. Medrad will acquire Possis Medical for about US$361 million. The offer price represents a premium of approximately 39% over Possis Medical's recent share price.

Medrad makes contrast injection systems used to diagnose cardiovascular and other diseases. Possis Medical provides mechanical thrombectomy devices used to treat narrowed or blocked arteries and veins. The proposed merger will join two leaders in their respective fields, and underscores Medrad's's commitment to the treatment of patients in the growing cardiovascular intervention field.

Cardiovascular disease remains one of the main causes of death and disability in the United States and Europe and it is estimated that in the United States alone, more than 80 million people are affected by some form of cardiovascular disease.

"This merger will capitalize on both companies' strengths to deliver growth in our current markets, and create a formidable cardiovascular portfolio in the future," said John Friel, Medrad President and CEO. "We welcome Possis Medical as the cornerstone of Medrad's cardiovascular strategy. It is a truly compatible partnership in terms of product performance, company growth and employee culture."

"Our shared history of innovation bodes well for product development beyond our core businesses, and provides tremendous opportunity for growth for our business and employees. In addition, Medrad will enable us to broaden our geographic reach without adding infrastructure. We look forward to joining the Bayer and Medrad organization," said Possis Medical President and CEO Robert G. Dutcher.

Headquartered near Minneapolis, Minnesota, Possis Medical posted revenues of $67 million and employed approximately 280 people for its fiscal year ending July 31, 2007.

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