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 Systems
Limited which optimises the synergy between the two companies. This new
agreement includes an immediate order valued at £345,000 for 3D imaging
components and on-going research into advanced 3D technologies which is
scheduled to be fulfilled by February 2006. The agreement supersedes the
previous agreement signed in February 2004.
The disappointing sales performance of the 3DSP and 3DLP (3D baggage X-ray
screening systems) due to significant price pressure within the sector led to a
joint review of the sales and marketing strategy. As a consequence of these
discussions a new agreement has been established that will provide for both a
more cost effective business model for the 3D technology and the opportunity
for Rapiscan to take advantage of some of Image Scan's recent advances in X-ray
products for security applications.
Rapiscan, who retain an exclusive licence to market some of Image Scan's 3D
products within the security sector, can now benefit from advances in Image
Scan's technology that will enable them to re-launch the 3D baggage inspection
system 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 have
now found the right formula for success. Rapiscan remain committed to our 3D
X-ray technology and we look forward to a growing return on our investment in
this sector. Rapiscan's significant new order for our 3D equipment kick starts
this growth with the commitment to our 2D technology providing further
opportunities."
Frank Baldwin, Managing Director of Rapiscan Systems Limited, commented:
"We are delighted to have reached this new agreement with Image Scan. Our
commitment to their 2D and 3D technology is strong and we believe that with
this new cost model we should see improved sales for these products develop
over the next few months. This combination of technology will strengthen
Rapiscan's competitive position while providing increased sales volume and
revenue growth for Image Scan."
About Image Scan Holdings plc
Image Scan Holdings plc (AIM: IGE) is focused on the development and
commercialisation of market leading real-time 3D and 2D X-ray solutions for use
in the global industrial and security inspection markets. The company's
industrial inspection solutions include the MDXI unit and the X-line camera.
The company's security inspection solutions currently feature the unique 3D
baggage inspection system, AXIS-3D®, marketed by Rapiscan in their 3DSP and
3DLP 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.
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For further information, please contact:
Image Scan Holdings Tel: 01664 503 600
Nicholas Fox, CEO
GTH Media Relations Tel: 020 7153 8039 / 8035
Toby Hall / Jade Mamarbachi
Rapiscan Systems Limited Tel: +44 (0)870 777 4301
Frank Baldwin, MD