HT Medical
Immersion
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Press release: Immersion to acquire leading medical simulation developer
(SAN JOSE, CALIF.) July 31, 2000 -
Immersion Corporation, (NASDAQ: IMMR), the pioneering developer of
sensory interaction technology, today announced that it has signed a
definitive agreement to acquire Gaithersburg, MD-based HT Medical Systems
in a pooling transaction currently valued at approximately $42 million. HT
Medical Systems designs and manufactures state-of-the-art technology that
simulates hands-on medical procedures to create realistic training
environments for doctors and other healthcare personnel. Under the terms
of the proposed acquisition, HT Medical Systems will become a wholly-owned
subsidiary. The transaction is expected to be accounted for as a pooling
of interests. It is subject to registration of the Immersion common stock
to be issued in the Merger with the Securities and Exchange Commission,
approval by more than two-thirds of the stockholders of HT Medical Systems
and other customary closing conditions.
The underlying importance of medical simulation is that it allows
healthcare providers to practice procedures in an environment where
mistakes do not have dire consequences. Medical errors kill between 44,000
and 98,000 Americans per year according to the Institute of Medicine’s
(IOM) published report, To Err is Human: Building a Safer Health System.
HT Medical Systems simulators can help to reduce procedural mistakes by
working to fundamentally change the competency assessment and training of
healthcare personnel, just as flight simulators revolutionized pilot
certification and training decades ago.
"The development of realistic simulation tools like those we
develop with Immersion's TouchSenseÔ technology are crucial to the
furtherance of quality healthcare for all," said Greg Merril, founder
and Chairman of HT Medical Systems. "The fusion of Immersion and HT
Medical is a great day for healthcare in that it brings significant new
intellectual and financial resources to bear on one of the industry's
biggest challenges: how to credential and train without risk to patients,
doctors, and clinics. HT Medical's staff is very pleased to be a part of
Immersion's success."
"The future of training physicians on medical simulation systems
is dependent on generating the look and feel of real (actual) medical
procedures - integrating the realism of visual, physical, physiological
and tactile feedback is critical," said Dale Wahlstrom, vice
president and general manager at Medtronic, Inc. "The synergies of
Immersion and HT Medical bring together the most advanced technology and
industry leadership available to deliver the promise of improved medical
care and training through realistic medical simulation systems. This is a
welcomed event in the medical industry." Minneapolis-based Medtronic,
Inc. is a leading provider of medical products and services that treat
millions of people each year and is one of HT Medical's biggest customers.
"The acquisition of HT Medical Systems is an important step in the
growth of Immersion Corporation, expanding our strength and commitment in
one of our key vertical markets - medical simulation and
instrumentation," said Dr. Louis Rosenberg, CEO of Immersion.
"Both companies will benefit greatly from this partnership. HT
Medical will be able to better integrate Immersion’s expertise in
tactile sensations with HT’s knowledge of medical procedures and a
decade’s worth of experience in medical simulation. Immersion will
acquire several issued and pending patents as well as reaffirm our
commitment to expanding the use of haptic technology into important
applications and profitable vertical markets. The medical industry is one
of several key vertical markets for Immersion that also includes the
consumer, industrial and automotive industries."
About HT Medical (www.ht.com)
Founded in 1987, HT Medical Systems designs, manufactures, and markets
computer-based medical simulators that allow healthcare personnel to
practice procedures without placing patients, healthcare providers, or
clinics at risk. HT Medical’s products integrate proprietary computer
software and tactile feedback robotics with computers to achieve highly
realistic simulation systems. The company’s three key products are
CathSim™ Intravenous Training System, PreOp™ Endoscopy Simulator, and
PreOp™ Endovascular Simulator.
HT Medical’s technology development has been supported through the
U.S. Healthcare Finance Administration (HCFA), the Advanced Technology
Program of the National Institute of Standards and Technology (NIST), the
Defense Advanced Research Projects Agency (DARPA), the Army’s
Telemedicine and Advanced Technology Research Center (TATRC), and the
Small Business Innovation Research programs of the National Institutes of
Health (NIH) and the U.S. Navy.
About Immersion Corporation (www.immersion.com)
Founded in 1993, Immersion Corporation develops advanced hardware and
software technologies that enable users to interact with computers using
their sense of touch. Immersion’s patented TouchSenseTM technologies,
enable computer peripheral devices to deliver tactile sensations that
correspond to on-screen events. Immersion licenses its hardware and
software technology, on which it holds 58 issued patents worldwide, to
industry-leaders in order to integrate and implement its sensory feedback
into professional simulation and modeling, consumer devices, and enabling
technologies.
Statements made in this press release other than statements of
historical fact are forward-looking statements, including those that
reflect management’s current forecast of certain aspects of the company’s
future. Forward-looking statements made in this press release are based on
current information, which we have assessed but which by its nature is
dynamic and subject to rapid and even abrupt changes. Forward looking
statements include statements regarding the anticipated benefits of the
acquisition, the capabilities of the technologies described above, the use
of HT Medical Systems’ devices to credential doctors and the ability of
HT Medical System to integrate touch-enabling haptic technologies into
medical simulators. The company’s actual results might differ materially
from those stated or implied by such forward looking statements due to
risks and uncertainties associated with the company’s business which
include, but are not limited to, delay in or failure to consummate the
acquisition, unanticipated costs associated with the acquisition,
difficulties in the assimilation of acquired personnel and operations, the
acceptance of touch-enabled medical simulation technologies and products
identified in this release, unanticipated difficulties in integrating
Immersion’s touch-enabling technologies into HT Medical Systems’
products, whether medical regulatory authorities will choose to require
doctors to use HT Medical Systems’ devices as part of their
credentialing process, and general market and economic conditions.
Such risks and uncertainties are further outlined in Immersion’s
reports on Forms 10-K and 10-Q, as filed with the Securities and Exchange
Commission filed with the Securities and Exchange Commission. These
factors may not constitute all factors that could cause actual results to
differ materially from those discussed in any forward-looking statement.
Immersion is not obligated to revise or update any forward-looking
statements in order to reflect events or circumstances that may arise
after the date of this release.
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