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Eckert & Ziegler AG: Sale of Production Line and U.S. Business for Permanent Prostate Cancer Implants

(Ad hoc press release)

Berlin, 06.02.2003. Eckert & Ziegler Strahlen- und Medizintechnik AG, a specialist for radioactive components for medical and industrial applications located in Berlin, Germany, yesterday executed a comprehensive agreement with the Atlanta-based Theragenics Corporation (U.S.A) about the transfer and installation of an automated production line, the sale of parts of her U.S. business, and the delivery of permanent implants for the treatment of prostate cancer. In addition, both parties signed a distribution agreement that will allow BEBIG Isotopen- und Medizintechnik GmbH, an subsidiary of EZAG, to distribute Theragencis Palladium seeds in Europe.

"The agreement allows EZAG to realize value from its historically under-developed U.S. business, which has recently come under consolidation pressure due to the bankruptcy of a distributor and changes in reimbursement rules", explained Dr. Andreas Eckert, the CEO of EZAG. "In addition, it confirms the groups leading position as an innovative equipment manufacturer, and strengthens BEBIG's European market presence through the extension of its product portfolio to Palladium."

The implementation of the agreement is expected to result in an after tax earning increase for EZAG during the next two years of about 0.35 and 0.25 EUR per share respectively.

The Board of Directors