Meditron Stethoscopes triples

Meditron stethoscopes reports three times more stethoscopes sold in 2003 compared to 2002.

The main driver for this significant increase in unit sales was the introduction of the M30 stethoscope, which started in November 2002. This favourably priced stethoscope seems to touch the right strings among doctors and veterinarians. The exceptional sound quality and revolutionary design, combined with the possibility to connect the Meditron stethoscope to a computer are key success factors for the increase in sales.

Although the number of units tripled in 2003 the financial result was not as sales would indicate; High production costs and a low dollar exchange rate had a negative impact on financial results. During the second half of 2003, Meditron started to transfer production of stethoscopes to Taiwan in order to reduce cost of production. This has resulted in a significant improvement, which will have considerable impact on 2004 results.

Cost of operations is also reduced as a result of restructuring. Cost containment and further increase of sales volume are the two main focuses of Meditron, and will result in positive cash flow for the stethoscope division in 2004.

Meditron's strategic partner Welch Allyn proudly reports that the introduction of the latest stethoscope model (Welch Allyn Master Elite) has turned the Meditron business into a million dollar business for them. Ed Wright, Vice President says:

"Meditron represented one of the fastest growing product lines for Welch Allyn in 2003. We believe in this product line and expect further increase in sales for next year. We fully support the re-structuring of Meditron and we will contribute with an even stronger sales effort in 2004"

Meditron is satisfied over the increase in sales but will continue to work on cost control and development. "We will work on a closer level with Welch Allyn to ensure collaboration on future products. The relation we have had so far is very positive and we want to build further on this" says Birger Orten, CEO of Meditron ASA.

Please address enquires to:
Birger Orten, CEO, Meditron ASA, tel. +47 90826474, or
Marc Van Maris, Managing Director, Meditron Stethoscopes AS, tel. +47 93471180

About Meditron ASA:
Meditron ASA is a Norwegian based technology company focused on the development of medical technology products based on their own patented solutions. The company is a leading player in PC based auscultation system and today has established to strong foothold in international markets. Meditron is also developing an erectile dysfunction (impotence) aid.