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Neusoft Medical intends to acquire equities in Philips-Neusoft Medical Systems joint venture from Philips

Neusoft Medical intends to acquire equities in Philips-Neusoft Medical Systems
                          joint venture from Philips

  PR Newswire

  SHENYANG, China, Feb. 5, 2013

   - Neusoft Medical will further enhance the product innovation and enrich
        product lines to accelerate its expansion in the global market

SHENYANG, China, Feb. 5, 2013 /PRNewswire/ -- Neusoft Corporation ("Neusoft",
SSE:600718) announced today that it has signed a Term Sheet with Philips on
the proposed transaction of shares and assets in Philips and Neusoft Medical
Systems Co., Ltd. ("PNMS"). According to the Term Sheet, Neusoft's
wholly-owned subsidiary Neusoft Medical System Co., Ltd. ("Neusoft Medical")
and its overseas associates intend to acquire 51% equities in PNMS held by
Philips. Upon the completion of the proposed transaction, all intellectual
property rights of PNMS will be shared by both Neusoft and Philips. In
addition, a team of approximately 100 to 150 Computed Tomography (CT) system
and component engineers and supporting staff will transfer from the joint
venture to Philips.

According to Neusoft, the joint venture had fulfilled its mission over the
past years, as evidenced by a large number of competitive products and
intellectual property rights. The successful performance of PNMS has built a
solid foundation for both sides to further optimize their respective global
deployment and improve their competitiveness. With this transaction, Neusoft
and Philips will be able to develop new products based on their previous
achievements in a more flexible manner in line with their respective
strategies, which will further support their long-term strategic targets and
plans to help them cope better with new opportunities and challenges in the
global market.

PNMS was jointly established by Neusoft Medical and Philips in 2004 with a
registered capital of USD 29.6 million. Philips and Neusoft Medical held 51%
and 49% equities respectively. PNMS is specialized in R&D and production of
medical systems such as CT scanners, MRI, ultrasound and X-ray equipments that
are branded with Neusoft and Philips respectively and put into the market
through their respective marketing networks for global markets. Based on
Neusoft Medical and Philips' best practices in medical systems, PNMS has been
committed to technology innovation and development of new products, achieving
many technical breakthroughs and patents. Its product portfolio includes 4
categories, 10 series and 20 models, with 17 FDA certificates and 17 CE
certificates. These products are widely used in approximately 70 countries and
regions around the world. Over the past years since its establishment, PNMS
has provided premium products for Neusoft to expand global market, and
enriched Philips' product portfolio, making great contribution to promoting
Neusoft and Philips' competitiveness in the global arena.

According to the announcement, after the completion of the proposed
transaction, Neusoft Medical will become the holding company of the original
joint venture and its operations will be maintained. In addition, the
knowledge assets obtained by PNMS over the past years will be shared by
Philips and Neusoft Medical by means of co-ownership and license, to meet the
requirements of respective business development. Neusoft Medical and the
original joint venture will continue their businesses in R&D, production and
sales of medical systems, such as CT scanners, MRI, x-ray apparatus,
ultrasonic diagnosis apparatus and more. Besides, Philips and Neusoft Medical
will maintain a partnership in the form of components supply and the original
equipment manufacturer (OEM) supply of systems.

"The successful partnership between Neusoft and Philips during the past years
has brought both sides to a new height in global market expansion," Dr. Liu
Jiren, Chairman and CEO of Neusoft Corporation, commented. "With the
ever-changing market environment and business transformation, we have to think
about how to adapt to such changes to align with our long-term strategy and
growth. This transaction will provide each side with more flexibility and
momentum for innovation in the aspects of product positioning and marketing
strategies by fully sharing the achievements of the original joint venture. In
the future, Neusoft will stick to an active product strategy to enrich product
lines, including CT products, to further accelerate our expansion in the
global market, especially in those fast-growing emerging markets."

It is reported that Neusoft and Philips will hold further negotiations on the
proposed transaction and the signing of the definitive agreements and
subsequent closing is estimated to take place before the end of 2013.

About Neusoft Corporation Neusoft is the leading IT solution and service
provider in China with operations across the globe. Focusing on software
technology, Neusoft provides industry solutions, product engineering solutions
and related software products & platform, and services. With more than 20,000
employees around the world, Neusoft has a comprehensive marketing and service
network in more than 40 cities across China, as well as subsidiaries in the
U.S., Europe, Japan and the Middle East. The Company is the first listed
software company in China and is traded on the Shanghai Stock Exchange. For
more information, please visit: http://www.neusoft.com .

About Neusoft Medical Neusoft Medical is based in Shenyang, China. As a
wholly-owned subsidiary of Neusoft Corporation, Neusoft Medical has become the
premier developer and manufacturer of advanced medical equipment in China.
Combining strength in R&D, software development and system integration with
collaboration with top medical institutes and academic institutions, Neusoft
Medical has released more than 20 new products since its founding in 1998 and
installed thousands of medical systems worldwide. To learn more, please visit:
http://medical.neusoft.com/en/

For more information, please contact:

Evelyn TangBranding & Marketing Management Center Neusoft Corporation Phone:
+86-24-8366-5663 Email: tangyi@neusoft.com

Website: http://www.neusoft.com/en
Website: http://medical.neusoft.com/en
 
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