EXHIBIT 99
FOR IMMEDIATE RELEASE NEWS RELEASE
Contact : Glenn P. Muir Marianne E. Ritchie
Executive Vice President and CFO Manager, Investor Relations
Hologic, Inc. Hologic, Inc.
(781) 999-7300 (781) 999-7300
HOLOGIC BOARD NAMES INDUSTRY VETERAN AND LORAD PRESIDENT TO CEO POST;
John W. Cumming Named CEO and President
Other Management Changes Announced
BEDFORD, Mass., (August 1, 2001) -- Hologic, Inc. (NASDAQ: HOLX), a leading
provider of specialized medical imaging equipment, today announced that its
Board of Directors elected John W. Cumming, Chief Executive Officer, President,
and director, effective immediately. Mr. Cumming, a twenty-five year veteran of
the healthcare industry, joined Hologic in August 2000 as Senior Vice President
and President of LORAD, a Hologic Company.
Dr. Jay A. Stein, who had served temporarily as interim Chief Executive
Officer following the unexpected passing of David Ellenbogen, will remain in the
key leadership position of Chief Technology Officer, a position he held prior to
assuming the role of interim CEO. Dr. Stein will also continue as Chairman of
the Board of Directors. The Board of Directors also appointed Glenn P. Muir,
Hologic's Executive Vice President and Chief Financial Officer, a director.
Additionally, the Company has appointed Peter C. Kershaw, former President of
Bespak Medical Device Division, as Mr. Cumming's replacement at LORAD.
Steve L. Nakashige, Hologic's President, COO and director, has decided to
leave the Company and has resigned his position to pursue other business
opportunities. During Mr. Nakashige's seven years of leadership, he was
instrumental in successfully guiding Hologic through periods of rapid growth and
challenging periods of consolidation.
"The opportunity to lead Hologic after the sudden passing of my friend and
Hologic co-founder David Ellenbogen is quite an honor," said Hologic's new CEO
and President, John Cumming. "Hologic has a strong history of developing
diagnostic and
imaging systems with superior image quality and diagnostic accuracy. The
Company's research and development programs, coupled with its recent
acquisitions, have resulted in Hologic achieving an enviable market position in
its core bone densitometry and mammography businesses, and as a potential market
leader in the emerging digital radiography market through Direct Radiography
Corp. However, the number of these initiatives, in particular the scope of our
commitment to digital radiography development, has come at the expense of
profitability and positive cash flow. I am determined to preserve David's legacy
and expand Hologic's share of its core markets as we move forward. My initial
priority is to work closely with the general managers of each of the divisions
to ensure we are maximizing the use of our available resources, to develop
strategies that further broaden distribution channels for our products, and to
pursue business relationships that would allow Hologic to leverage its
exceptional technology base. These initial steps will provide the foundation for
returning Hologic to profitability and improving shareholder value. Hologic's
management team has considerable expertise in the healthcare industry, and I am
looking forward to working with them during this exciting period of change."
Commenting on the appointment of Mr. Cumming to CEO and President, Chairman
of the Board Dr. Jay A. Stein stated, "We are delighted that Jack has agreed to
accept the positions of Chief Executive Officer, President and director. His
extensive experience in the healthcare industry, and his knowledge of financial
markets, make him exceptionally qualified for this role. Since joining LORAD
nine months ago, Jack has been instrumental in reviewing our mammography
business through cost-saving initiatives and expanded distribution channels.
Jack is a very well respected executive throughout the industry and his
experience makes him a natural choice to lead Hologic as we move into the
challenging digital market."
Prior to joining Hologic, Mr. Cumming served as President and Managing
Director of HealthCare Markets Group (HCMG), a strategic advisory and investment
banking firm, which exclusively served the healthcare industry. During his
career with HCMG, Mr. Cumming worked closely with some of the industry's leading
healthcare companies on improving performance and enhancing shareholder value.
His broad range of assignments included: restructuring and turnarounds,
acquisitions and divestitures, the formation of alliances and joint ventures,
assisting companies in initial public offerings, private placements and
conventional debt financing, and establishing distribution networks in the
United States, Europe and the Pacific Rim. Mr. Cumming's tenure with HCMG
included living two years in Europe, where he directed the Firm's entry into the
international marketplace.
Mr. Kershaw joined LORAD, a Hologic Company, in July 2001 to replace Mr.
Cumming. Mr. Kershaw is an experienced operations executive for the medical
device industry. Prior to joining LORAD, Mr. Kershaw held the position of
President, Bespak Medical Device Division, a subsidiary of Bespak plc. Mr.
Kershaw's career in operations also includes five years as Vice President of
Operations at Bard Cardiology, a division of C.R. Bard, and two years as Bard
Cardiology's Director of Manufacturing. Additionally,
Mr. Kershaw held manufacturing and engineering positions with Johnson & Johnson
Orthopedics for seven years. As General Manager, Mr. Kershaw will oversee the
daily operations at LORAD and will focus on expanding the distribution channels
for the mammography product line. Furthermore, he will focus on the development
and implementation of manufacturing processes in preparation for production of a
digital mammography system, currently being reviewed by the Food and Drug
Administration.
Hologic, Inc. is dedicated to developing and delivering proprietary X-ray
and ultrasound systems that incorporate direct-to-digital radiographic imaging
technology for both women's health and general radiographic applications.
Hologic's business divisions include: the Hologic Radiographic Systems division
encompassing general and digital radiography systems; Direct Radiography Corp.,
a wholly owned subsidiary and manufacturer of state-of-the-art proprietary flat
panel technology called DirectRay; the Hologic Bone Densitometry division; the
LORAD division, specializing in state-of-the-art breast imaging and minimally
invasive breast biopsy systems; and Fluoroscan Imaging, a wholly owned
subsidiary, manufacturing and marketing state-of-the-art, low intensity, real
time X-ray imaging devices.
For more information on Hologic, please visit the Company's website at
www.hologic.com.
- ---------------
ABOUT JOHN W. CUMMING
CHIEF EXECUTIVE OFFICER, PRESIDENT, AND DIRECTOR HOLOGIC, INC.
Mr. Cumming has spent over twenty-five years in the healthcare industry,
serving in general management, sales, and marketing positions on an
international basis. Prior to joining Hologic in August 2000, Mr. Cumming
served as President and Managing Director of HealthCare Markets Group, (HCMG) a
strategic advisory and investment banking firm he founded in 1984. While at
HCMG, Mr. Cumming authored the acclaimed Annual Healthcare Industry Report,
which is recognized as one of the most comprehensive compilation of financial
industry information available today. The Report, reviews the financial
performance of more than 900 public healthcare companies, over five-years, in 36
segments.
Over the years Mr. Cumming has been a featured spokesperson at industry and
corporate symposiums; discussing the market dynamics of the healthcare industry
and future trends. While at HCMG, Mr. Cumming's analysis and commentary appears
regularly in: Med Pro Month, Modern Healthcare, AHA News, Hospitals & Health
Networks, Home Health Business Report, Long Term Care News, Managed Care Week,
Medical Imaging Magazine, Healthcare Technology Management, Medical Device &
Diagnostic News, and other national medical and financial publications.
Prior to forming HCMG, Mr. Cumming was Vice President/Division Manager for
Elscint, Inc., a full line manufacturer of diagnostic imaging equipment. He
became a member of Elscint's management team through the acquisition of Xonics
Medical Systems in 1983, where he served as Director of Sales & Marketing. Mr.
Cumming joined Xonics through the acquisition of Radiographic Development
(medical imaging), where he served as Vice President, Sales & Marketing.
Mr. Cumming currently serves on the Board of Directors of MRPnet, Inc., an
internet application provider to the health care industry, Century Capital, an
investment banking firm specializing in the biosciences field, and HealthCare
Markets Group.
This News Release contains forward-looking information that involves risks
and uncertainties, including Mr. Cumming's statements concerning the Company's
opportunities and his goal to return the Company to profitability and enhance
shareholder value. These forward-looking statements are subject to known and
unknown risks and uncertainties that could cause actual results to differ
materially from those anticipated. Factors that could cause actual results to
materially differ include, without limitation, Hologic's continuing losses and
ability to fund those losses as well as other working capital requirements; the
early stage of market development for digital X-ray products, Hologic's ability
to predict accurately the demand for its products and to develop strategies to
address its markets successfully; uncertainties inherent in the development of
new products and the enhancement of existing products, including technical and
regulatory risks, cost overruns and delays; risks related to ongoing litigation;
technical innovations that could render products marketed or under development
by Hologic obsolete; competition; reimbursement policies for the use of
Hologic's products; market acceptance of drug therapies for osteoporosis. Other
factors that could adversely affect Hologic's business and prospects are
described in Hologic's filings with the Securities and Exchange Commission.
Hologic expressly disclaims any obligation or undertaking to release publicly
any updates or revisions to any such statements to reflect any change in the
Company's expectations or any change in events, conditions or circumstances on
which any such statement is based.
###