CTI Molecular Imaging and Mirada Solutions Announce Acquisition

On 19th August 2003, CTI Molecular Imaging, Inc (Nasdaq: CTMI), a leading provider of positron emission tomography (PET) equipment, molecular probes and services, announced that it had acquired all of the capital stock of Mirada Solutions Limited, a leading developer of software applications for medical imaging, originally spun-out from the University of Oxford.

CTI will incorporate Mirada's image analysis and fusion software into all its PET scanner workstations sold directly, giving its PET equipment greatly enhanced analytical and diagnostic capabilities. Mirada has developed several products that provide significantly better detection, diagnosis and management of disease through the application of powerful image analysis software to medical images.

"CTI is extremely pleased to offer our customers the software solutions that Mirada has developed," said Dr Terry Douglass, Chairman and Chief Executive Officer of CTI. "We believe that we have acquired a best-in-class capability that will further distinguish our PET scanners in the marketplace. With this acquisition, we not only offer the fastest scan time through our proprietary LSO technology, but we also provide the greatest level of PET image functionality for the clinician."

"Mirada has found an excellent partner in CTI," said Dr Chris Behrenbruch, Chief Executive Officer of Mirada. "With CTI, we believe our software solutions will help define the market for PET and molecular imaging in the diagnosis of disease and in the development of new applications in pharmaceutical research, disease monitoring and therapy. CTI has built an outstanding direct distribution sales force that will provide an excellent distribution channel for our products. As the leader in PET and molecular imaging, CTI was the logical partner for Mirada to accelerate the growth of our business."

The total consideration paid in connection with this transaction was approximately $22 million in cash and notes, plus the potential for incentive payments that are contingent upon the future financial performance of Mirada. As a result of the acquisition, CTI will take a one-time, non-cash pretax charge of approximately $1.3 million to write off in process R&D expenses at Mirada. The transaction is expected to be neutral to CTI's earnings results in fiscal 2004.

Notes to Editors

About CTI

Based in Knoxville, Tennessee, CTI Molecular Imaging, Inc is a leading supplier of products and services for positron emission tomography (PET), a diagnostic imaging technology used in the detection and treatment of cancer, cardiac disease and neurological disorders. Visit www.ctimi.com for more information.

About Mirada Solutions

Mirada Solutions Limited is a leading developer of software and analytical tools for medical imaging workstations. Mirada's unique products aid better detection, diagnosis and management of disease through the application of powerful image analysis tools to medical images. Mirada's financial investors include Oxford University, Comvest Ltd, Technology Assessment Partners and Quester. Visit www.mirada-solutions.com for more information.

Dr Jonathan Gee, Investment Director for Quester, said: "We are pleased that Mirada is being acquired by CTI and that the technology will be exploited widely by the new owners. CTI is a leading company in PET imaging and will be able to unlock new markets for the Company's image analysis and pharma-enabling software. Quester is pleased to have played an active role on Mirada's Board as the representative of Oxford University and the Isis College Fund. Mirada is an example of the high quality commercial opportunities that are being created by Oxford and the benefits of early stage investors, such as ourselves, working in partnership with the University."

Allan Cockell, Chairman of Comvest Ltd, commented: "Mirada was formed by a merger of two spin-out companies of Oxford University's Medical Vision Laboratory. Merging OMIA and OXIVA was at the instigation of Comvest Limited, an early stage company technology fund which provided financial, strategic and commercial support at each stage of Mirada's first 2 years of growth. The Medical Vision Laboratory is a world-class R&D facility and we were pleased to have played a fundamental role in the commercial development of MVL technology."

About PET

PET images the biology of diseases at the molecular level, often before changes are visible by anatomical imaging or, in many cases, before symptoms appear. Diseases are biological processes and it is these processes that PET examines. PET/CT is a new imaging technology that combines the biological examination of patients by PET with the CT images of the body's structural detail. PET/CT technology improves the diagnostic accuracy and treatment management of patients by providing surgeons, radiation oncologists and other physicians with precise anatomical landmarks associated with the disease condition as determined by PET.

About Quester

Founded in 1984, Quester is one of the UK's leading independent venture capital companies specialising in the provision of finance and management support for early stage growth companies and has approximately £300 million under management. Quester focuses on producing diversified portfolios for investors. Quester's investment team specialises in information and communication technologies, healthcare and life sciences, energy and new materials. Quester manages venture capital funds on behalf of international institutional investors and funds from academic institutions including Oxford, Bath, Bristol and Southampton Universities and a consortium of East Midlands universities. It also has five listed venture capital trusts. Visit www.quester.co.uk for more information.

About Comvest

Comvest is a privately held investment company focusing on the commercialisation of intellectual property primarily in the medical technology sector within the UK. In addition to providing equity capital, Comvest, as an active shareholder, provides commercial, corporate finance and strategic advice to investee companies. Comvest has invested in a number of Oxford University spinout companies, including Thirdphase, and Oxford Biosignals, where it was a founder shareholder. Mirada Solutions was formed at the instigation of Comvest, which is delighted to have helped enable Mirada to embark on the next stage of its development as a result of its acquisition by CTI.