Frost & Sullivan Lauds MEDRAD Excellent Product Innovation Abilities in the MRI Coils Market

Palo Alto, Calif. — August 16, 2006 — Frost & Sullivan selected MEDRAD, Inc. for its 2006 Product Differentiation Innovation Award in recognition of its full line of eCoil™ products. These products offer unprecedented MR imaging of pelvic regions such as the prostate, colon, bladder, and cervix, to assist physicians in cancer diagnosis, staging, and radiation therapy planning.



The eCoil product line has expanded to include the first prostate endorectal coils for the fast-growing 3.0T scanner market. The 3.0T Prostate eCoil joins disposable prostate, colorectal, and cervix endorectal coils that are currently the main internal coils for pelvic imaging for both 1.0T and 1.5T MR systems.



These coils offer significantly higher signal-to-noise ratios than traditional pelvic coils as well as assist physicians in diagnosing tumor stages of various cancers. Nearly all major MR scanner manufacturers include MEDRAD’s eCoils in their coil inventory.



“The predominant coil offerings from third-party manufacturers are mainly head, neck, spine, breast, and extremity coils for knees, wrists, and shoulders,” says Frost & Sullivan Research Analyst Subha B. Basu. “MEDRAD introduced endorectal coils in order to effectively visualize the pelvis and lower abdomen structures without the need for invasive surgical procedures such as laparoscopy or endoscopies.”



MR-based diagnoses of pelvic and endorectal examinations are especially important due to the projected increase in prostate cancer incidence rates in males and colorectal cancers in both males and females.



According to data from the American Cancer Institute, in 2005, the incidence of prostate cancer in males is expected to be 33 percent, while colorectal cancer is likely to occur in almost 11 percent of both males and females. The number of deaths from prostate, colorectal, and urinary bladder cancers is expected to top 70,000 among males in 2005.



However, the five-year survival rate for patients with malignant tumors that have been detected early and localized to the organ of origin is over 90 percent for colorectal, bladder, cervical, and prostate cancers. The eCoils line of MR internal coils from MEDRAD is helping lower fatalities attributed to endorectal cancers. It also identifies physiological abnormalities of the prostate and pelvic organs. This can help remedy incontinence, erectile dysfunction, and neuromuscular dysfunction of the lower abdomen and pelvis.



“MEDRAD’s position as a leading provider of both surface and internal coils have consistently helped increase company revenues, which exceeded $400 million in 2005,” notes Basu. “In addition to eCoils, the company also has an array of surface coils for multi-channel, phased array coils for neurovascular, extremity, and torso imaging.”



Each year Frost & Sullivan presents this Award to a company that has demonstrated the ability to develop and/or advance products with more innovative capabilities than competing vendors and products. The Award recognizes the company’s successful adoption of new or existing technology that has become a part of its well-designed product family. Such innovation is expected to significantly contribute to the industry in terms of product performance and degree/rate of technical change.



Frost & Sullivan Best Practices Awards recognize companies in a variety of regional and global markets for demonstrating outstanding achievement and superior performance in areas such as leadership, technological innovation, customer service, and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis, and extensive secondary research in order to identify best practices in the industry.

About MEDRAD, Inc.

MEDRAD, INC. is a global leading provider of medical devices and services that enable and enhance imaging procedures of the human body. Used in diagnostic imaging, MEDRAD’s product offerings include a comprehensive line of vascular injection systems, magnetic resonance (MR) surface coils and patient care products, as well as equipment services. MEDRAD, INC. is the recipient of the 2003 Malcolm Baldrige National Quality Award, the top honor a U.S. company can receive for quality and business excellence. The company’s world headquarters is near Pittsburgh, Pennsylvania, in the United States. MEDRAD INC. is a U.S. affiliate of Schering AG, Germany (NYSE:SHR). For more information visit the MEDRAD Website at www.medrad.com.

About Frost & Sullivan

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company’s industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit http://www.awards.frost.com or http://www.medicalimaging.frost.com.

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