Elbit Medical Imaging Signs Agreement to Sell Ultrasound Division

Elbit Medical Imaging Ltd. has signed an agreement in principle to sell its Diasonics Vingmed Ultrasound Division to GE Medical Systems for $230 million, subject to adjustment. A final agreement is expected by the end of March, 1998.

The scope of the acquisition, including about 900 employees world-wide, covers all Diasonics Vingmed operations as well as major facilities in Horten, Norway; Haifa, Israel; Santa Clara, California; and Zug, Switzerland.

This transaction, which is subject to governmental regulatory reviews and other contingencies, is planned to close by the end of March, 1998.

Diasonics Vingmed Ultrasound is a developer, manufacturer and distributor of diagnostic ultrasound systems for radiology and cardiology, and echo lab image management networks.

Elbit Medical Imaging is engaged in the development, manufacture, sale and support of medical diagnostic imaging systems and equipment, directly and through three subsidiary companies: Diasonics Vingmed Ultrasound Ltd., Elscint Ltd., and Elbit Medical Services Ltd.