OSI Systems sells 20% of Spacelabs to investors in IPO, lists Spacelabs on London AIM

New York, Oct. 25 - OSI Systems, Inc. said it has spun out its health care operations into a new subsidiary, Spacelabs Healthcare Inc., placed part of the new company's stock with institutional investors and listed the new shares on the AIM market in London.

Spacelabs' stock will begin trading on Oct. 31 under the ticker "SLAB."

OSI sold 20% of Spacelabs' shares in the placement, raising $29.7 million, or $27 million net of expenses.

Of the proceeds, $22 million will be used to repay part of Spacelabs' debt to OSI, leaving $35 million outstanding.

Spacelabs incorporates OSI's health care operations, Spacelabs Medical, Blease Medical, Dolphin Medical and Osteometer MediTech. Its business covers manufacturing and distributing medical equipment and services including patient monitoring solutions, anesthesia delivery and ventilation systems, pulse oximeters and sensors and bone densitometers to hospitals, clinics and physicians offices.

"We are delighted to have successfully completed the listing of Spacelabs Healthcare on AIM in London," said Deepak Chopra, chief executive officer of Spacelabs, in a news release.

"During a period of difficult market conditions we are pleased to have been able to attract a high quality institutional shareholder base.

"Since 1987, we have built a profitable global business with a portfolio of strong brand names and cutting edge technologies in the areas of patient monitoring, anesthesia and pulse oximetry. We look forward to the support of our shareholders as we pursue our future growth strategies utilizing the proceeds of the placing to accelerate the next phase of our strategic development."

Iassaquah, Wash.-based Spacelabs had revenues of $195.7 million in fiscal year 2005.

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