JUNE 1998 PRESS RELEASE

Global Telemedicine Installations Are On The Rise

Medford, Oregon (June 4, 1997): Telemedicine videoconferencing equipment sales in Europe, North America, and the Pacific Rim accounted for approximately $250 million in revenues in 1996. Worldwide, at least $500 million was spent on telemedicine products and services through 1996 (cumulative), according to published system installation claims made by major participants. For comparison, an estimated $1 billion is spent annually on all types of videoconferencing systems throughout the world, contributing to a cumulative total of nearly $7.5 billion through 1996. Prominent individuals within the telemedicine segment express optimism for 1997 as a year of crucial growth in worldwide installations. In support of this enthusiasm are market estimates suggesting that Europe and the Pacific Rim combined may represent telemedicine expenditures of $1.4 billion by 2001, especially if home care applications are found to be cost-effective.

Factors contributing to European market growth of telemedicine systems include establishment of medical and telecommunications standards, health care reforms, increased medical needs for individuals in older age categories, potential cost benefits, and removal of tariff barriers. International telecommunications companies such as British Telecom and MCI are strong competitors, along with videoconferencing equipment vendors such as NEC, Panasonic, PictureTel, and VTEL (which merged with CLI in 1997). In Asia, existing hospitals are being reorganized, and specialty hospitals are being constructed. There are also aggressive Pacific Rim expansion plans being implemented by several companies. CLI, for example, has been attributed with approximately 80% of the total videoconferencing market in China as of early 1996.

The World Market for Telemedicine Products and Services report from Feedback Research Services covers these trends and others, along with growth rate estimates and revenue forecasts for Asia, Europe, and North America through 2002. The report includes 200 pages of text, with descriptions of major telemedicine projects currently in operation throughout the world.

For more information about this report, contact us at 541.899.8088 or info@feed-back.com.