ELEKTA NEGOTIATES TO ACQUIRE CMS


ELEKTA NEGOTIATES TO ACQUIRE CMS

Acquisition of leading treatment planning software developer would strengthen
Elekta's offering and accelerate the company's expansion into high growth
oncology informatics 


PRESS RELEASE	
Stockholm, Sweden, January 8, 2008

Elekta AB (publ) (STO:EKTAb) a world leader in clinical solutions for radiation
therapy and radiosurgery, today announced that it is in exclusive negotiations
based on a Letter of Intent to acquire CMS Inc. for a total cash consideration
representing an enterprise value of USD 75 M. CMS is a worldwide leader in the
development, sales and support of advanced radiation therapy planning solutions,
supporting over 1,500 sites in clinical operation throughout the world. The
transaction is subject to successful conclusion of final transaction
documentation, satisfactory completion of due diligence, receipt of relevant
regulatory approvals and other conditions. The negotiations are expected to be
finalized by mid February 2008 and closing is estimated to take place by mid
March 2008.

CMS has been a pioneer in the development and delivery of radiation treatment
planning (RTP) systems for over 25 years and continues to be a leader in
treatment planning and oncology workflow management. Successful completion of
the acquisition process would benefit Elekta by adding a suite of advanced RTP
systems, a large and growing installed base, and a well-established RTP
operational infrastructure to Elekta's current oncology business. CMS's
worldwide sales and support infrastructure and large, experienced engineering
organization have the potential to accelerate Elekta's ability to develop,
implement, and support new, sophisticated radiation planning, delivery, and
management solutions worldwide.

CMS is also the market leader in treatment planning for proton therapy with 8
installations in clinical use. Integrating these solutions with the MOSAIQ™
information management system would reinforce Elekta's leadership in software
systems for proton therapy facilities and strengthen the collaboration between
Elekta and its current partners in this area.

“The products and market position of CMS are highly complementary to Elekta's
corporate structure, technology portfolio, and R&D roadmap. Both Elekta's and
CMS customers will benefit from our combined strength in product development and
support. With CMS in the Elekta Group, we will also gain relationships with a
large number of customers who do not use Elekta's products today”, explains
Tomas Puusepp, President & CEO of Elekta. “Elekta and CMS share a common belief
in open systems, and a vision that radiation treatment planning is a critical
piece of the technology required for emerging radiation therapy treatment
capabilities such as VMAT and adaptive therapy. Together, CMS and Elekta can
offer and further develop solutions that optimize clinical workflow while also
providing well-defined interfaces that allow clinicians to choose systems that
best fit their specific needs.”

New trends in radiation therapy planning

“The radiation therapy discipline continues to advance and radiation therapy
planning, along with treatment delivery and management technology, enables
clinicians to develop and deliver regimens that hopefully will result in
improved treatment outcomes”, explains James P. Hoey, EVP Product Creation at
Elekta and CEO of IMPAC Medical Systems, an Elekta company. “Elekta recognizes
that treatment planning is rapidly evolving from an event that typically
occurred in an isolated area one or two times during the therapy process to
becoming a more iterative process that evolves throughout the course of therapy
with various steps taking place in different areas of the department. Our
aggressive development of MOSAIQ™ RTP as the world's first distributed toolset
for advanced radiation therapy is targeted to meet this growing demand. CMS,
with several leading solutions already in clinical use, and a strong pipeline of
advanced functionality in development, could significantly contribute to our
MOSAIQ RTP strategy going forward. CMS's large, highly competent product
creation and support organizations would enable us to accelerate our development
and bring these solutions to our customers more quickly and effectively.”

“At CMS, we are excited about the opportunity of joining the Elekta Group and
are fully committed to the timely completion of all necessary steps in the
transaction. Combined, Elekta and CMS will strengthen its market position and
the transformation of CMS into a center of excellence in treatment planning
technology will be of great value for the combined organization and our
customers”, comments Andrew C. Cowen, President and CEO of CMS. 

Financial effects of the transaction

CMS is based in St Louis, Missouri and is owned by a private equity fund,
managed by the US investment bank Brown Brothers Harriman. The company has 290
employees worldwide. In fiscal year 2007 (ending September), the company grew
its order intake by 21 percent to USD 61 M.
Management expects a successfully completion of the acquisition process to
result in:

• Accretion to earnings on a cash basis already from fiscal year 2008/09
• Mildly dilution to reported earnings in fiscal year 2008/09 as a result of
expected amortization of intangibles associated with the acquisition and ‘fair
value' adjustments of certain balance sheet items under IFRS accounting
standards 
• Accelerated revenue growth, but with modest group effect given the size of the
acquired business
• Preserved balance sheet strength and financial flexibility







******

For further information, please contact:

Peter Ejemyr, Group VP Corporate Communications, Elekta AB
Tel: +46 733 611 000 (mobile), e-mail: peter.ejemyr@elekta.com  


About CMS
CMS is a worldwide leader in the development and support of radiation treatment
planning and workflow management solutions. With treatment planning systems
installed in more than 1,500 sites worldwide, CMS is a global resource to the
radiation oncology community. A privately held corporation, CMS employs 290
professionals in its headquarters located in St. Louis, MO and regional offices
in Tampa, Florida; Freiburg, Germany; Tokyo, Japan; Sydney, Australia; and
Shanghai, China. More information about CMS can be found at www.cmsrtp.com.

About Elekta

Elekta is an international medical technology group, providing oncologists,
radiation therapists, neurosurgeons and many other medical specialists with
state of the art tools to fight serious disease.

Elekta provides advanced clinical solutions, comprehensive management and
information systems as well as services for improved cancer care and management
of brain disorders. 

Elekta's systems and solutions are used in over 4,500 hospitals around the
world. Clinical and information management solutions include, among others,
Leksell Gamma Knife® for non-invasive treatment of brain disorders, Elekta
Axesse™ and Elekta Synergy® for stereotactic and image guided radiation therapy
and radiosurgery, PrecisePLAN and ERGO++ treatment planning systems as well as
the MOSAIQ™ suite of software for image-enabled EMR and efficient management of
clinical and patient data.

With over 2,000 employees globally, the corporate headquarter is located in
Stockholm, Sweden and the company is listed on the Nordic Exchange under the
ticker EKTAb. More information about Elekta is available at www.elekta.com.

Forward-Looking Statements 

Statements contained in this release, which are not historical facts, may be
considered "forward-looking statements" under the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are based on current expectations
and the current economic environment. We caution the reader that such
forward-looking statements are not guarantees of future performance. Unknown
risk, uncertainties as well as other uncontrollable or unknown factors could
cause actual results to materially differ from the results, performance or
expectations expressed or implied by such forward-looking statements.

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