Maxxim Medical to Acquire Circon

Maxxim Medical Inc., maker of disposable specialty medical products, is purchasing Circon Corp., a manufacturer of endoscopy systems for diagnosis and minimally invasive surgery. Under the terms of the agreement, Maxxim will commence a cash tender offer for all of the outstanding shares of Circon common stock at a net price of $15.00 per share. The total acquisition cost is approximately $205 million in cash and the assumption of approximately $38 million of outstanding debt. The Boards of Directors of both companies have approved the transaction.

Completion of the tender offer is subject to certain conditions, including among others the tender of at least a majority of the outstanding shares of Circon and the expiration of the applicable waiting period.

Headquartered in Santa Barbara, CA, Circon has annual revenues of approximately $155 million. Maxxim has annual revenues of in excess of $500 million.

George Cloutier, president and chief executive officer of Circon, said, "The Maxxim/Circon transaction represents an opportunity for us to maximize shareholder value and allows for the preservation of Circon's identity as a world leader in endoscopy."

Mr. Cloutier continued, "Maxxim's decision to utilize Circon as a primary platform for substantial growth in diagnostic endoscopy and minimally invasive surgery is truly an exciting opportunity for our employees to participate as members of the Maxxim team."