OSI Systems Inc. Announces Sale of Silicon Microstructures Subsidiary for Approximately $6,500,000

    HAWTHORNE, Calif.--March 13, 2001--OSI Systems Inc. today announced that it has signed a definitive agreement to sell its wholly owned subsidiary, Silicon Microstructures (SMI), to ELMOS Semiconductor AG (Neuer Markt:ELG), for approximately $6,500,000.
    The transaction is scheduled to close by the end of March.
    The sale amount includes $6 million in cash to be paid to OSI Systems upon closing, and an additional $462,000 for certain capital equipment items being purchased by SMI from OSI Systems' UDT Sensors subsidiary. The sale agreement also includes a three year commitment from UDT Sensors to supply four inch silicon foundry wafers to SMI, and to dedicate limited manufacturing facilities to be used by SMI for its etching operations.
    SMI was acquired by OSI Systems in November 1998 from Exar Corp. . SMI's products include ultra-precise mechanical sensing structures that provide an interface between the physical world and the electronic world of signal processing. 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.
    "We are pleased to announce the sale of SMI to ELMOS Semiconductor," stated Deepak Chopra, OSI Systems' president and chief executive officer. "SMI is a proven innovator and leader in the field of silicon pressure sensor technology, and has contributed to the growth of OSI Systems' knowledge-base. One of our major considerations in proceeding with this transaction was to set the stage for what we hope will be a long, continued relationship with SMI and ELMOS."
    Chopra continued, "While we see a bright future for SMI, OSI Systems is focusing our operations on other key growth areas, like OSI Fibercomm, our fiber optic components business, where we have been experiencing significant growth. Going forward the three major thrusts for our company will be our fiber optics, security products and medical device businesses. Our strategy has been to cultivate our resources in order to drive and generate value from these business lines."

    About ELMOS Semiconductor AG

    ELMOS Semiconductor AG is a developer and manufacturer of custom integrated circuits, based in Dortmund, Germany. For more than 10 years, ELMOS has generated 85 percent of its net sales in the automotive electronics segment.

    About OSI Systems Inc.

    OSI Systems Inc. is a worldwide manufacturer and seller of X-ray inspection and metal detection systems under the trade names Rapiscan(TM), Metor(TM) and Secure(TM). OSI Systems also sells complete life science applications systems, including X-ray and ultrasound products for detecting osteoporosis under the trade names UltraSure(TM) and DexaCare(TM).
    In addition, OSI Systems designs, manufactures and sells optoelectronic systems and subsystems worldwide through its global network of sales and manufacturing facilities in Singapore, Malaysia, Norway, Finland, the United Kingdom and the United States.
    OSI Systems' customers include many of the leading Fortune 1000 companies. OSI Systems' products are used in a broad range of applications in the security, medical, fiber optics, communications, aerospace, oil exploration and automotive industries.

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    The statements contained in this release that 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.