Pro Medicus Wins $2.2M plus Canadian Digital Radiology project

• First Pro Medicus sale in North America

• Additional to A$10m Agfa North American deal announced October 2004

• Installation to commence in December 2004

• Provides strategic reference sites for PME/Agfa assault on North American market

• Ongoing service fees to be in addition to $2.2M

Leading e-health company Pro Medicus (ASX:PME) today announced that it has signed an agreement worth over CA$2 million (A$2.2m) to supply its full suite of Practice Management and digital radiology integration products to AltaPACS, a company formed by Radiology Consultants Associated and EFW Radiology, the two largest private radiology partnerships in Calgary, Canada.

The agreement, the first for Pro Medicus in North America, is separate and in addition to the previously announced $10 million deal with Agfa and will provide key reference sites for the company in the North American market.

Under the terms of the agreement, Pro Medicus will implement its full suite of radiology products in over 20 AltaPACS diagnostic imaging sites throughout the Calgary region, with the first installation commencing in December 2004. Subject to the successful installation of the first site, implementation of the other sites is scheduled for completion prior to June 30, 2005.

Pro Medicus will receive approximately CA$2 million (A$2.2m) in licence and implementation fees, a substantial proportion of which is anticipated to be realised in the second half of the current financial year. The company also expects to generate further revenues (in addition to the $2.2M) in professional services and ongoing support fees over the next three years relating to the project.

Joe Moreau, AltaPACS president and CEO said "AltaPACS evaluated a number of Canadian and international software products before opting to go with Pro Medicus. The Practice Management capability of the Pro Medicus product meets and exceeds all of our immediate and longer-term requirements, and integrates seamlessly with Agfa's PACS offerings. Given the familiarity of the doctors with Agfa's PACS system, which is now used in Calgary hospitals, the robust integration of Agfa's PACS with Pro Medicus made the solution very compelling."

"Over time, our ability to implement a completely integrated digital environment - whether our doctors are working at a hospital or a clinic – will enable a higher level of efficiency and ultimately benefit our patients. While there are a number of Canadian-based RIS and PACS offerings, they could not offer us the degree of flexibility, integration and scalability for this future environment that we found with the Pro Medicus/Agfa solution," Mr Moreau said.

"The AltaPACS agreement is another huge step forward for our company," said Pro Medicus Managing Director Dr. Sam Hupert. "Not only is this significant for Pro Medicus in its own right, it will also provide our new partnership with Agfa invaluable reference sites in the North American private radiology market."

"Winning a large agreement with so many stringent and important requirements again confirms our long held belief that our product is truly world class. It gives us enormous confidence that the combined Pro Medicus/Agfa offering has the potential to quickly make major inroads into the vast North American market," Dr Hupert said. "We could not have asked for a better start."

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