IRIS International, Inc. Acquires Bench-Top Instrument Platform From BioMicro Systems, Inc. for $3.2 Million

Nov 30, 2010 (Datamonitor via COMTEX) -- IRIS International, Inc., a manufacturer of automated in-vitro diagnostics systems and a provider of personalized medicine products and testing services, has announced that it has acquired the assets of a multi-purpose, bench-top instrument platform for automating highly repetitive, manual laboratory protocols for fluorescence in-situ hybridization testing and other slide-based cytogenetic applications.

The product acquisition is a natural extension to the successful ThermoBrite DNA Hybridization System and in line with the Company's entry into personalized medicine with emphasis on cancer diagnostics. The product and proprietary technology assets were purchased for $3.2 million in cash from BioMicro Systems, Inc. The new product platform will be integrated into the Iris Sample Processing Division.

"The product acquisition is an excellent strategic fit and natural product extension for our Iris Sample Processing Division which is the market leader for small semi-automated (F)ISH denaturation and hybridization instrumentation with more than 4,500 units sold of its StatSpin ThermoBrite instrument since its launch in 2003. We expect the new system to enable us to capitalize on the success of the ThermoBrite, creating a family of products for this market segment. In addition, we believe this acquisition furthers the Company's strategy to move into high value applications focused on Personalized Medicine, with an emphasis on utilizing genetic information as a guide to treat diseases, such as cancer. With the increasing rate of adoption of (F)ISH testing as standard protocol for cancer diagnostics, mid-range laboratories performing between 10 and 50 tests per day are requiring a higher level of automation. We estimate there are approximately 4,000 of these mid-range laboratories in the clinical and research market that we will be targeting," stated Cesar Garcia, Chairman, President and CEO of IRIS International.

The system has been developed as a standalone and versatile bench-top instrument capable of automating a growing number of laboratory protocols. The initial and primary market focus for the instrument will be for (F)ISH applications, although the system also automates other processes for WISH (whole mount in-situ hybridization), IHC (immunohistochemistry), blots (Western/Southern/Northern), and other slide-based applications. This bench-top platform is user programmable and it is capable of automating most steps of the (F)ISH test protocol with a significant reduction in technologist labor and increased reliability.

On a GAAP basis, IRIS expects the acquisition to become accretive to its earnings per share (EPS) in 2012, and to be slightly dilutive to 2011 EPS.

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