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April 25, 2001
Olympus and Terumo Enter into an Alliance Agreement
in the Medical Equipment Field:
- Starting with the Areas of Heart Surgery, Gastroenterology, and Urology -
On April 25, 2001, Olympus Optical Co., Ltd. (President: Masatoshi Kishimoto, hereinafter called "Olympus") and Terumo Corporation (President: Takashi Wachi, hereinafter called "Terumo") entered into an alliance agreement relating to product development, manufacture, and sales in the medical equipment field.
Especially, Olympus and Terumo will develop minimally invasive diagnosis/treatment devices -the major trend of future medical treatment-which reduce the pain or suffering of patients. Both companies will establish a closer relationship with respect to development and sales in areas of heart surgery, gastroenterology , and urology. The five-year target sales figure of both companies is an annual total of ten billion yen or more.
Olympus and Terumo recognized that trends in future medical treatment are represented by two key words: "minimally invasive" and "cost-effective" medical treatment. Accordingly both companies decided to combine our core technologies to develop and produce new next-generation devices that are highly competitive in the world market under technical alliance between Olympus and Terumo.
The strength of Olympus is optical/digital technology in medical and health-care fields. The company develops medical systems such as endoscopes, microscopes, and clinical analyzers.
Especially in the endoscopic domain, Olympus develops and offers comprehensive diagnosis/treatment devices for clinicians involved in a variety of areas such as surgery as well as gastroenterology systems.
Terumo has a high market share of disposable medical devices, nutriment alignments, and I.V. solutions. The company has the most advanced technologies with respect to the medical treatment of cardiovascular systems such as PTCA balloon cathetersh*1, coronary stentsh*2, and heart-lung machine systemsh*3. The company also offers prominent technologies in medicines and home medical care.
Both companies are pioneers in advanced medical equipment and are expanding businesses for developing minimally invasive diagnosis/treatment devices. By the integration of Olympus's optical/digital technologies and Terumo's medical expertise, Olympus and Terumo can share the advantages of the core technologies, manufacturing technologies, and sales networks to produce higher synergy effects, developing and popularizing minimally invasive and cost-effective medical equipments needed for future medical treatment.
The scope of technical cooperation covers broad business areas. For the present, we will start joint development of next-generation treatment devices used in heart surgery, gastroenterology, and urology.
The five-year target sales figure of both companies, only in these areas, is expected to be an annual total of 10 billion yen or more. We are also considering other businesses or development themes for future cooperation.
At present, there is no plan to establish a new capital relationship between Olympus and Terumo.
Joint Development Theme
1. Heart Surgery Area
  For heart surgery, operations that reduce the pain or suffering of patients, such as an operation without extracorporeal circulation, have already been employed. By the integration of Olympus's high-resolution endoscope and device control technologies and Terumo's technologies for the development of medical instruments, both companies will develop new medical devices and instruments to meet the requirements for these new heart surgery operations such as new medical devices or instruments for minimally invasive operations and those for heart surgeries using endoscopes. By the employment of endoscopes in heart surgeries, endoscopes are to be utilized in almost all surgery areas.
In this area, Olympus and Terumo will establish new businesses in cooperation with each other. First, we will modify the existing Olympus vein harvesting instruments with endoscopesh*4, ultrasonic coagulation cutting devicesh*5 for the U.S. market, which is the largest market in the world, and then will put the products to the market through Terumo's sales channels.
Terumo will also use the development technologies and sales channels of Terumo Cardiovascular Systems Corporation (TCVS), its subsidiary for heart-lung machine systems in the U.S., and will build the global development system.
In this area, the sales figure expected in fiscal 2006 is 4 billion yen

2. Gastroenterology Area
  The market for endoscopic treatment devices in this area is approximately 100 billion yen in fiscal 2000. Due to the increasing trend in disposable medical devices, it is expected in 2006 that the figure will increase to approximately 160 billion yen. In this area, Terumo's technologies relating to radiology and cardiovascular areas will be applied to the gastroenterology area. In specific, based on Terumo's technologies such as guidewiresh*6, catheters, and stents, we will develop products mainly for endoscopic diagnosis and treatment of biliary systems, and then launch those products onto the market through Olympus's global sales channels.
In the future, it is expected that new techniques and treatment methods will be established by integrating and applying Terumo's development technologies for vasculature minimally invasive treatment devices and Olympus's technology for treatment using endoscopes.
In this area, the sales figure expected in fiscal 2006 is 3 billion yen.

3. Urology Area
  As the treatment of benign prostate hyperplasia, of which many of the male elderly suffer, surgical operations are generally employed. In this area, by the integration of Terumo's new treatment technologies using laser and Olympus's device control and software technologies, we aim at developing minimally invasive treatment systems against benign prostate hyperplasia, to reduce the pain and suffering of patients.
In this area, the sales figure expected in fiscal 2006 is 3 billion yen.

*1) PTCA Balloon Catheter:
  A small tube (known as a catheter) with a tiny balloon attached to the distal tip. As a treatment instrument, it is inserted into the lesion of occlusion or stenosis of coronary arteries which cause myocardial infarction, and then the balloon is inflated, widening the passageway and restoring the bloodstream.

*2) Coronary Stent:
  A cylinder-shaped metal treatment instrument that is attached to the balloon part of a PTCA balloon catheter and is used to widen the passageway of the stenosis lesion of the coronary artery.

*3) Heart-Lung Machine System:
  During open-heart surgery, the system temporarily takes over the function of patient's heart and lungs.

*4) Vein Harvesting Instrument with Endoscopes:
  During coronary artery bypass operations, the veins of a patient's leg may be used. This instrument is used to obtain those veins using an endoscope, reducing the amount of cutting and so reducing the pain of incision.

*5) Ultrasonic Coagulation Cutting Device:
  This is a device for surgery using energy generated from ultrasonic vibration. This device is used to catch organs or blood vessels with a holder at the tip of the probe and to cut organs or blood vessels while blood coagulates and bleeding is stopped by heat generated from the mechanical vibration.

*6) Guidewire:
  A metal wire around 1 mm in diameter which is used to guide the catheter to the target regions during angiography by being in the front of the catheter.

About Olympus Optical Co., Ltd.
Head Office: Shinjuku Monolith, 3-1, Nishi-shinjuku 2-chome, Shinjuku-ku, Tokyo
President: Masatoshi Kishimoto
Establishment: 1919
Paid-in Capital: 40,832 millions of yen (End of March, 2000)
Consolidated Net Sales: 428,646 millions of yen (End of March, 2000)
Number of Employees: 4,319(End of March, 2000)
Main Business: Manufacturing and sales of equipment and devices relating to the fields of medical and healthcare, imaging and information, and industrial applications:
Medical endoscopes, microscopes, clinical analyzers, reagents, cameras, digital cameras, microcassette and IC recorders magneto-optical disc drives, printers, barcode scanners, industrial endoscopes, measurers and motors; others.
Olympus has developed fiberscopes and videoscopes with which internal organs can be directly observed since the company developed the first photogastroscope in 1950. Today we are expanding our business including the development of instruments and devices for medical treatment, as well as those for diagnosis. Olympus has the largest market share and the most advanced technology of endoscopes in the world. The company is contributing to the treatment of diseases and the early detection of cancers.
About Terumo Corporation
Head Office: 44-1, Hatagaya 2-chome, Shibuya-ku, Tokyo
President: Takashi Wachi
Establishment: 1921
Paid-in Capital: 38,716 millions of yen (End of March, 2000)
Consolidated Net Sales: 171,179 millions of yen (End of March, 2000)
Number of Employees: 4,287 (End of March, 2000)
Main Business: Manufacture and sales of medical products, nutritional food supplement, blood bags, disposable medical devices, artificial organs, medical electronic and digital thermometers, etc.
Terumo has a high market share of disposable medical devices, nutriment alignments, and I.V. solution in Japan and overseas. The company has the largest market share of guidewires for angiography and treatment in the world. We have advanced technologies with respect to angiographic catheters, stents-the first ever produced in Japan-and heart-lung machine systems.
*Olympus Optical Co., Ltd. was changed to OLYMPUS CORPORATION as of October 1, 2003.
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