Customer Consortium Acquires dpiX | Varian

Customer Consortium Acquires dpiX

Palo Alto, Calif. -- May 17, 1999 -- A consortium of companies today signed an agreement with Xerox Corp. to acquire 80 percent of dpiX, a Xerox subsidiary that produces amorphous silicon thin-film transistor (TFT) arrays. Financial details of the transaction were not disclosed.

The purchasing consortium is comprised of the primary customers of dpiX, namely Trixell, (a joint venture of Philips Medical Systems, Siemens Medical Engineering, and Thompson-CSF), who is the majority owner, Planar Systems, Inc., and Varian Medical Systems, Inc. These companies have complementary interests in dpiX's design, development and manufacturing capabilities.

Spun off from Xerox Palo Alto Research Center in 1996, dpiX has a proven expertise in TFT arrays for X-ray digital detectors and liquid crystal displays.

The new owners teamed up in an effort to ensure a secure supply source, further develop dpiX's technological expertise and share the development costs for new products.

"This agreement secures a consistent supply of amorphous silicon flat panel image sensors for real time imaging in our integrated radiotherapy systems," said Bob Kluge, manager of the X-ray tube and imaging products business for Varian Medical Systems. "It also enables us to continue supplying digital imaging subsystems for medical, scientific and industrial OEMs and system integrators."

"This acquisition confirms Trixell's commitment to the innovative market for digital flat-panel detectors used in advanced radiology systems," notes G�rard Daguis�, president of Trixell and chairman of the new board of dpiX. "At the same time, it confirms the continued support and confidence of Trixell's shareholders."

"For many years Planar customers in both the commercial and defense markets have wanted a secure supply of full color AMLCD displays that are made in the U.S." said William D. Walker, Planar's chairman and chief executive officer. "With this acquisition, we can now satisfy that need."

Trixel S.A.S., registered in France and based in Moirans, Fr, was created in 1997 to develop, manufacture and market a new generation of flat digital detectors for X-ray imaging systems. It pledges to bring lasting technological innovation, reliability and quality to the entire X-ray systems market through the Pixium product family. Trixell is a joint venture of Philips Medical Systems, Siemens Medical Engineering and Thomson Tubes Electroniques. For more information, visit Trixell's web site at www.trixell.com.

Planar Systems, Inc. is a worldwide leader in the development, manufacture, and marketing of high performance commercial flat-panel display components, microdisplays, CRTs and flat panel based display products for federal markets and display systems for specialized applications. The primary market sectors that Planar serves today are medical, industrial, instrumentation, defense, communications, transportation and business/point-of-sale. The Company competes on a global basis, with full development, manufacturing and marketing operations in both the United States and Europe. For more information, visit Planar's web site at www.planar.com.

Xerox Corporation (NYSE:XRX) of Stamford, Conn., develops, manufactures, markets, services and finances a full range of products, services, and solutions for the worldwide document processing market.