Norland Medical Systems, Inc. Announces Restatement

Norland Medical Systems, Inc. announced that the company will restate its revenues downward for the fourth quarter of 1996 and for the first, second and third quarters of 1997. The company estimates that 1996 revenues will be reduced by approximately $950,000 and that aggregate revenues for the first three quarters of 1997 will be reduced by approximately $4,700,000.

The company's decision to restate its financial statements for the periods indicated is the result of changes in the timing of the recognition of certain revenues, primarily from certain transactions with dealers. Following a review by the company, it was determined that these transactions should have been treated as bill and hold arrangements. Under applicable bill and hold criteria, the company did not have all of the documentation necessary to support the recognition of revenues at the times initially recorded, and, therefore, the recognition of revenues should have been deferred.

Norland Medical Systems, Inc. develops, manufactures, sells, and services a range of bone densitometers used to assess bone mineral content and density.

Edited By Patricia Breen