The Widespread Increase in PACS Installation to Spur Growth in the European Digital Radiography Market, Says Frost & Sullivan

LONDON, June 9, 2010 - Radiology has witnessed a technological evolution in the past few decades
with the development of innovative imaging modality. The emergence of (DR)
digital radiography and (CR) computed radiography has altered the face of
conventional radiography. With the economy recovering and capital becoming
available to potential buyers, the unit shipment volume is expected to gain
momentum in 2011, mostly in the DR segment of the market. The decline in the
prices of electronic archive systems, such as picture archiving and
communication system (PACS), is an impetus for the growth of DR.

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New analysis from Frost & Sullivan (www.medicalimaging.frost.com),
European Markets for Digital and Computed Radiography, finds that the
European DR market earned revenues of US$68.0 million in 2009 and estimates
this to reach US$111.2 million in 2016 and the European CR market earned
revenues of US$228.0 million in 2009 and estimates this to reach US$237.4
million in 2016. The markets covered are Germany, France, Italy, Spain, The
United Kingdom, Benelux and Scandinavia.

"DR offers optimised work flow and enhanced diagnostic image quality
thereby increasing productivity," says Frost & Sullivan Research Analyst
Simone Carron. "With the implementation of digital imaging being made
mandatory in European hospitals in the near future, the transition to digital
has significant market potential."

The enhancement in the clinical value of PACS, such as the ability to
make digital images accessible anywhere through digital network, is fuelling
the growth of DR. Several vendors are adopting a strategy of offering
comprehensive packages comprising of PACS and DR systems, making it
additionally appealing to buyers who are looking to acquire an archiving
system along with transitioning to digital.

However, widespread capital freezes and financial shortcomings are
responsible for the significant delay and decline in the number of DR and CR
purchases. The key challenge faced by the industry is the availability of
capital for competing technologies, such as digital solutions, that require
high initial investments. Furthermore, lack of awareness among buyers about
the available options to make the transition from analogue to digital
technology poses a major barrier to the industry.

"DR systems continue to be out of reach for many small and private
imaging centres that lack the budgets to make the transition," explains
Carron. "Besides the stand alone full systems, several buyers are unaware
that system upgrades are available."

Digital solution providers should become attuned to the needs of end
users by building a diverse product portfolio and offering competitive
pricing. It is essential for vendors to justify the high initial investments
of CR and DR with an emphasis on operational cost savings.

"Market participants should offer a broad range of technology options and
customised financial plans catering to end-user specifications in order to
maintain and enhance their current positions," concludes Carron.

If you are interested in more information on Frost & Sullivan's latest
research on European Markets for Digital and Computed Radiography, please
send an e-mail to Katja Feick, Corporate Communications, at
katja.feick@frost.com, with your full name, company name, title, telephone
number, company e-mail address, company website, city, state and country.

European Markets for Digital and Computed Radiography is part of the
Medical Imaging Growth Partnership Services programme, which also includes
research in the following markets: Digitisation Initiatives in the European
Medical Imaging Markets, U.S. Digital and Computed Radiography (DR/CR)
markets, and World Digital Radiography (DR) Markets. All research services
included in subscriptions provide detailed market opportunities and industry
trends that have been evaluated following extensive interviews with market
participants.

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           European Markets for Digital and Computed Radiography
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    Contact:
    Katja Feick
    Corporate Communications - Europe
    P: +49-(0)-69-7703343
    E: katja.feick@frost.com
    www.frost.com
    Twitter: twitter.com/frost_sullivan

Katja Feick, Corporate Communications - Europe, Frost & Sullivan, +49-(0)-69-7703343, katja.feick at frost.com