Siemens to Acquire CTI Molecular Imaging

Siemens and CTI Molecular Imaging have entered into a merger agreement under which Siemens will acquire CTI for approximately $1 billion.

Under the terms of the agreement, Siemens will commence a cash tender offer within 10 business days to acquire all of the outstanding shares of CTI stock at a price of $20.50 per share. Following the completion of the tender offer, any remaining shares of CTI stock will be acquired in a merger at the same price per share. The board of directors of each company has approved the agreement. The transaction is subject to customary regulatory approvals and other customary closing conditions, and is expected to close in the second quarter of 2005.

The acquisition will include all the businesses of CTI Molecular Imaging, including CTI PET Systems, PETNET Solutions, CTI Mirada Solutions, CTI Molecular Technologies and CTI Concorde Microsystems.