OSI Systems Inc. Announces Pre-Tax Gain of Approximately $1.1 Million from Venture Investment

    HAWTHORNE, Calif.--May 1, 2001---OSI Systems Inc. today announced that as a result of the acquisition of a company in which OSI Systems invested, OSI Systems has received a total consideration of approximately $1.4 million.
    This consideration does not include a hold back of approximately $167,000.
    OSI Systems invested a total $300,000 in the venture beginning in May 2000, resulting in a pre-tax gain to OSI Systems of approximately $1.1 million. This gain will be recorded in OSI System's current fiscal fourth quarter, ending this June 30.
    In addition to being a venture investment, the company is a customer of OSI Systems' fiber optic products subsidiary, OSI Fibercomm, and has been sampling OSI Fibercomm's high-speed photodetectors for use in transceiver products. The company is a developer of components for 10 Gigabit Ethernet modules.
    Deepak Chopra, OSI Systems' president and chief executive officer, stated, "I see the acquisition of this fiber optic company as an affirmation of our efforts to quickly identify and act upon current and future trends in the fiber optic marketplace."

    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.

    "Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995:
    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.