OSI Systems' Recently Acquired Subsidiary Silicon Microstructures Inc. Announces $2.6 Million in Orders From Major

LOS ANGELES (March 4) BUSINESS WIRE -March 4, 1999--

Pressure Sensors to be Manufactured at Company's State-of-the-Art

Wafer Fabrication Plant in Hawthorne, Calif.

OSI Systems Inc. (Nasdaq:OSIS) Thursday announced that its recently acquired subsidiary Silicon Microstructures Inc. (SMI) has been awarded purchase orders, valued at approximately $2.6 million, by a multibillion-dollar global electronics company.

The orders, which are to be shipped over the next 12 months, are for automotive pressure sensing elements to be used in engine control and emissions systems.

"We are gratified that this existing customer has renewed their confidence in our technology through an order of this size. This purchase alone represents over half of SMI's revenues for last year, and is a demonstration of the growth opportunities that are now available to us," said SMI's President Dr. Jim Knutti.

"By utilizing OSI's wafer fabrication capabilities for this order, we are able to realize an immediate competitive advantage through increased cost savings. The flexibility afforded us by having 'in-house' manufacturing capabilities allows us to be more aggressive in our bidding and delivery schedules."

Deepak Chopra, OSI Systems chairman and CE, said: "We are delighted that our vision for SMI's role in the OSI Group of companies is starting to materialize in such a short time. To book an order of this significance and capture the manufacturing synergy lends credibility to the integration of our companies. Also of significance is the new marketplace that the automotive sector represents for OSI Systems. Our goal will be to further penetrate this market by acquiring industry-specific skills, and then leveraging those into higher value, higher margin products."

SMI's products are ultra-precise mechanical silicon sensing structures that provide an interface between the physical world and the electronic world of signal processing. They include ultra-low-pressure sensors that are significantly more precise than other silicon pressure sensors on the market, low-cost, full-feature accelerometers and versatile pressure-die products. The products are used in automotive applications such as emission control, engine control and brakes, as well as in disposable medical devices and industrial systems for heating and ventilation.

OSI Systems, with headquarters in Hawthorne, manufactures and sells optical and pressure-sensitive electronics subsystems worldwide through its global network of sales and manufacturing facilities in Singapore, Malaysia, Denmark, Norway, Finland, the United Kingdom and the United States. OSI customers include many of the leading Fortune 1000 companies. Its products are used in a wide range of applications including security, medical, aerospace, oil exploration and automotive. For security and inspection customers worldwide, OSI manufactures and sells X-ray inspection and metal detection systems under the trade names Rapiscan(TM) and Metor(TM).

OSI manufactures and sells electromechanical pressure-sensing subsystems under the Silicon Microstructures trade name. OSI also sells complete systems for life science applications, including X-ray and ultrasound systems for detecting osteoporosis under the trade names DexaCare(TM) and UltraSure(TM) through its wholly owned subsidiary, Osteometer MediTech. The company, which employs approximately 800 people worldwide, had revenues of $94 million in its 1998 fiscal year, which ended June 30, 1998.

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995: The statements contained in this release which are not historical facts are forward-looking statements that are subject to risks and uncertainties including those risks detailed in the company's Securities and Exchange Commission filings that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. In addition to the factors discussed in the filings with the Securities and Exchange Commission, among the other factors that could cause actual results to differ materially are the following: adverse changes in the business conditions and the general economy; competitive factors, such as rival companies' pricing and marketing efforts; availability of third-party material products at reasonable prices; the financial condition of the customer; risks of obsolescence due to shifts in market demand and litigation involving product liabilities and consumer issues.

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CONTACT: OSI Systems Inc., Hawthorne

         Ajay Mehra, 310/978-0516 

or

         Coffin Communications Group, Sherman Oaks 

Sanjay Sabnani, 818/789-0100

KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: MEDICINE COMPUTERS/ELECTRONICS COMED Today's News
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