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Omron Corporation Set to Acquire Colin Medical Technology Corporation in June 2005

Kyoto, Japan (ots/PRNewswire)

Omron Corporation announced today
that it will acquire all shares of Colin Medical Technology
Corporation (CMT) (Komaki, Japan) from Carlyle Group (Washington
D.C.) and other stockholders through its wholly owned company, Omron
Healthcare Co., Ltd. (Kyoto, Japan). The acquisition is planned for
June 2005.
Through this acquisition, Omron Healthcare will own CMT's medical
devices for healthcare professionals, such as bio-information
monitors, inpatient blood pressure monitoring devices and vascular
screening devices, in addition to Omron Healthcare's home healthcare
products, including blood pressure monitors and body fat analyzers.
Omron Healthcare will become a unique company offering a wide
variety of medical devices in operation rooms, hospitals, and the
home and anticipates creating a new market by connecting medical
workplaces and patient homes.
"Omron predicted a shift within the medical market from treatment
to prevention," said Mr. Hisao Sakuta, representative director and
CEO of Omron Corporation. "To respond to this change, we spun off the
healthcare business in 2003 and accelerated our business goals and
began exploring partnership opportunities. With CMT reestablishing
its business foundation by the support of Carlyle, we believe Omron
Healthcare and CMT can establish a complementary relationship with
both products and in markets."
Since Omron Healthcare's spin off, it has shown steady growth and
reached 50.6 billion yen in sales and 7.6 billion yen in profit in
the fiscal year ending 2005. The global market volume for healthcare
devices for home use, such as blood pressure monitors, body fat
analyzers, thermometers and nebulizers is expected to grow steadily
from 113.5 billion yen in FYE 2004 to 150 billion yen in FYE 2011.
However, because Omron Healthcare has already achieved high market
share and the increasing competition caused by Asian low-cost
manufacturers, Omron Healthcare seeks new business domains for
continued growth. Through this acquisition, Omron Healthcare will
accelerate its growth and increase profit, aiming at 75 billion yen
in sales and more than 15 percent growth in sales' profit in FYE 08.
Since October in 2003, Carlyle has been proactively involved in
supporting CMT, including sending Carlyle's employees to CMT's office
in Komaki. Carlyle has also supported CMT to solve distribution stock
issues from the former company, patent litigation and follow-up legal
procedures, while looking for business alliances with global
corporations to improve CMT's corporate value. As a result, CMT was
able to achieve approximately 300 million yen in operating profits in
FYE 05.
"Because Omron Healthcare values CMT's corporate culture and
independence as well as presented business synergies, we and CMT's
management team decided a stock transfer was a great opportunity for
all," said Mr. Tamotsu Adachi, managing director of Carlyle. "We are
pleased to have realized a prompt rejuvenation and a structure for
growth."
As the population ages especially in the developed countries, the
number of patients with life-style related diseases, such as
hypertension and diabetes is increasing and preventive medicine has
been promoted as a government measure in many countries. Therefore,
the preventive medicine market, which connects the home and the
medical workplace, will emerge and create additional business
opportunities for Omron Healthcare such as:
    -- Establishing a new market of hardened arteries monitoring by combining
       CMT and Omron Healthcare's technology and devices;
    -- Creating a preventive medicine care support system utilizing a
       management program for life style-related diseases and medical
       devices; and
    -- Searching opportunities and commercializing the business of connecting
       the home and medical workplaces.
Omron Healthcare's acquisition is also intended to expand its
current business by:
    -- Expanding its blood pressure monitoring business
    -- Continuing to strengthen its brand by promoting its blood pressure
       monitoring technology and products for the medical workplace
       (operation rooms and hospitals) and home use;
    -- Developing next generation blood pressure monitoring technology; and
    -- Increasing sales of CMT's products overseas.
In addition, Omron Healthcare will maximize its synergies with
CMT, while respecting its current management and employees. However,
the acquisition intends to strengthen CMT products' cost
competitiveness by:
-- Exploring group-purchasing of materials;
    -- Considering using Omron Healthcare's manufacturing sites; and
    -- Possibly centralizing logistics
"With consistent and strong support from Carlyle, we have solved
many issues, rejuvenated faster than expected and are a top
manufacturer of blood pressure monitors for medical use," said Mr.
Yuzo Kambe, president and COO of CMT. "We believe this relationship
will let us enter new business domains and expand our business, which
we could not have successfully completed alone."
"In addition, we will come closer to realize CMT's mission
'Reducing Clinical Accidents to one out of every hundred (1/100)' and
'Reducing the numbers of bedridden elderly people by half'," added
Mr. Kambe.
About Omron Healthcare Co., Ltd.
Headquartered in Kyoto, Omron Healthcare Co., Ltd. (Representative
Director and CEO: Keiichiro Akahoshi) is a wholly owned subsidiary of
Omron Corporation, Japan's largest control components and systems
manufacturer. Specialized in healthcare equipment, including digital
blood pressure monitors, digital thermometers, body fat analyzers,
and nebulizers, Omron Healthcare employs 2,683 staffers worldwide and
recorded sales of 50.6 billion yen (fiscal year ending March 31,
2005).
Press Contacts:
     Kazuko Kuriyama
     Omron Healthcare, Inc.
     +1-847-247-5637
      Kazuko.kuriyama@omron.com
     Kelly Harder
     Edelman
     +1-312-297-7426
      Kelly.harder@edelman.com
Web site:  http://www.omronhealthcare.com

Contact:

Kazuko Kuriyama of Omron Healthcare, Inc., +1-847-247-5637,
Kazuko.kuriyama@omron.com , or Kelly Harder of Edelman,
+1-312-297-7426, Kelly.harder@edelman.com