Image Scan Holdings Regulatory News (IGE)

21 Oct 2005 06:00

For immediate release: 0700hrs Friday 21st October 2005 IMAGE SCAN HOLDINGS PLC ANNOUNCES NEW AGREEMENT WITH RAPISCAN SYSTEMS LIMITED FOR 2D AND 3D TECHNOLOGY Image Scan Holdings plc (AIM: IGE), a provider of leading real-time multi-view,3D X-ray imaging solutions for the industrial and security inspection markets,today confirmed that it has signed a new agreement with Rapiscan SystemsLimited which optimises the synergy between the two companies. This newagreement includes an immediate order valued at ‚£345,000 for 3D imagingcomponents and on-going research into advanced 3D technologies which isscheduled to be fulfilled by February 2006. The agreement supersedes theprevious agreement signed in February 2004.The disappointing sales performance of the 3DSP and 3DLP (3D baggage X-rayscreening systems) due to significant price pressure within the sector led to ajoint review of the sales and marketing strategy. As a consequence of thesediscussions a new agreement has been established that will provide for both amore cost effective business model for the 3D technology and the opportunityfor Rapiscan to take advantage of some of Image Scan's recent advances in X-rayproducts for security applications.Rapiscan, who retain an exclusive licence to market some of Image Scan's 3Dproducts within the security sector, can now benefit from advances in ImageScan's technology that will enable them to re-launch the 3D baggage inspectionsystem at a more competitive price.Nicholas Fox, Chief Executive of Image Scan Holdings plc, commented:"We believe that having worked closely with Rapiscan over recent years we havenow found the right formula for success. Rapiscan remain committed to our 3DX-ray technology and we look forward to a growing return on our investment inthis sector. Rapiscan's significant new order for our 3D equipment kick startsthis growth with the commitment to our 2D technology providing furtheropportunities."Frank Baldwin, Managing Director of Rapiscan Systems Limited, commented:"We are delighted to have reached this new agreement with Image Scan. Ourcommitment to their 2D and 3D technology is strong and we believe that withthis new cost model we should see improved sales for these products developover the next few months. This combination of technology will strengthenRapiscan's competitive position while providing increased sales volume andrevenue growth for Image Scan."About Image Scan Holdings plcImage Scan Holdings plc (AIM: IGE) is focused on the development andcommercialisation of market leading real-time 3D and 2D X-ray solutions for usein the global industrial and security inspection markets. The company'sindustrial inspection solutions include the MDXI unit and the X-line camera.The company's security inspection solutions currently feature the unique 3Dbaggage inspection system, AXIS-3D‚®, marketed by Rapiscan in their 3DSP and3DLP product lines. For further information on the company, please visit www.ish.co.uk - and for further information on its products, please visit www.3dx-ray.com.--- ENDS ---For further information, please contact:Image Scan Holdings Tel: 01664 503 600Nicholas Fox, CEOGTH Media Relations Tel: 020 7153 8039 / 8035Toby Hall / Jade MamarbachiRapiscan Systems Limited Tel: +44 (0)870 777 4301Frank Baldwin, MDENDIMAGE SCAN HOLDINGS PLC