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adobe pdf icon Analogic Corporation Completes Fourth Quarter Restructuring Initiatives, Provides Update on Recent Acquisition, and Announces Fourth Quarter Investor Conference Call

Analogic Corporation Completes Fourth Quarter Restructuring Initiatives, Provides Update on Recent Acquisition, and Announces Fourth Quarter Investor Conference Call

Analogic Corporation Completes Fourth Quarter Restructuring Initiatives, Provides Update on Recent Acquisition, and Announces Fourth Quarter Investor Conference Call

PEABODY, Mass.–(BUSINESS WIRE)–Aug. 8, 2008–Analogic
Corporation (NASDAQ: ALOG) reported today that it completed planned
restructuring initiatives during the fourth quarter ended July 31,
2008, that will lower the Company’s cost structure going forward. The
Company also announced continued progress in the integration of its
Copley Controls acquisition.

“During the past year we completed a rigorous internal review to
determine how we can gain efficiencies and accelerate response times
to evolving opportunities in the medical and security marketplaces,”
said President and CEO Jim Green. “Early in the fourth quarter, we
reorganized our engineering staff to increase efficiency, optimize the
allocation of resources, and enhance communications throughout our
entire engineering organization. In addition, as we noted in our
third-quarter Form 10-Q, during the fourth quarter we also implemented
a reduction in force and a voluntary retirement program for our U.S.
workforce.”

The reduction in force, implemented in May 2008, will result in a
one-time charge of approximately $0.6 million in the fourth quarter.
The voluntary retirement program will result in a one-time charge of
approximately $3.4 million. Combined, these two programs will result
in an estimated $4.0 million one-time charge in the fourth quarter and
are expected to save the Company an estimated $5 million annually.

“During the quarter we also made considerable progress integrating
the Copley Controls subsidiary,” Green said. “Management teams from
our Peabody headquarters and Copley have focused on integrating
marketing, engineering, manufacturing, the supply chain, and
information systems. To further strengthen customer relationships, we
are working with a major Copley customer to establish lean inventory
levels consistent with demand.” As a result, Analogic has delayed
approximately $4.5 million in shipments originally scheduled for the
fourth quarter.

Additionally, as stated in its third-quarter Form 10-Q, the
Company will amortize Copley acquisition-related intangible assets and
inventory fair value adjustments. This will result in a $3.1 million
charge in the fourth quarter, a $1.6 million charge in the first
quarter of fiscal 2009, and an ongoing charge of approximately $0.7
million in subsequent quarters.

Green concluded, “We enter fiscal 2009 as a leaner and more
productive organization with an improved cost structure. Copley’s
contribution remains in line with our original estimates, and the
integration is progressing well. We look forward to realizing the
long-term strategic benefits of this acquisition.”

Conference Call

Analogic also announced that it will conduct an investor
conference call on Thursday, September 25, at 11:00 a.m. ET to discuss
the fourth-quarter and fiscal-year 2008 results and recent
developments. To participate in the conference call dial
1-866-823-6992 (toll free), or 1-334-323-7225 for international
callers, approximately five to ten minutes before the conference is
scheduled to begin. Inform the operator that you wish to join the
Analogic conference, Passcode 03391. You will then be asked for your
name, organization, and telephone number and be connected to the
conference. To listen to the live audio webcast, visit
www.analogic.com approximately five to ten minutes before the
conference is scheduled to begin.

A replay of the conference call webcast will be archived on the
Company’s website at www.analogic.com approximately three hours after
the call is completed and will be available through Thursday, October
16, 2008.

A telephone digital replay will be available approximately two
hours after the call is completed through midnight (ET) Thursday,
October 16, 2008. To access the digital replay, dial 1-877-919-4059
(toll free), or 1-334-323-7226 for international callers. The
conference ID number is 36252325. For more information on the
conference call, visit www.analogic.com, call 978-326-4213, or email
proberts@analogic.com.

About Analogic

Analogic Corporation is a leading designer and manufacturer of
advanced health and security systems and subsystems sold primarily to
Original Equipment Manufacturers (OEMs). The Company is recognized
worldwide for advancing the state of the art in Automatic Explosives
Detection, Computed Tomography (CT), Digital Radiography (DR),
Ultrasound, Magnetic Resonance Imaging (MRI), Patient Monitoring, and
Advanced Signal Processing.

Forward Looking Statements

This press release contains the Company’s or management’s
intentions, hopes, beliefs, expectations or predictions. These are
considered “forward-looking statements” within the meaning of the
Private Securities Litigation Act of 1995. Forward-looking statements
(statements that are not historical facts) in this presentation are
made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Investors are cautioned that all
forward-looking statements, including statements about product
development, market and industry trends, strategic initiatives,
regulatory approvals, sales, profits, expenses, price trends, research
and development expenses and trends, and capital expenditures involve
risk and uncertainties. Actual results may differ materially from
those indicated by such statements as a result of various factors,
including those discussed in the Company’s periodic reports filed with
the SEC under the heading “Risk Factors.” In addition, the
forward-looking statements included in this press release represent
the Company’s views as of August 8, 2008. The Company anticipates that
subsequent events and developments will cause the Company’s views to
change. However, while the Company may elect to update these
forward-looking statements at some point in the future, the Company
specifically disclaims any obligation to do so. These forward-looking
statements should not be relied upon as representing the Company’s
views as of any date subsequent to August 8, 2008.

CONTACT: Analogic Corporation
John J. Millerick, 978-326-4000
Senior Vice President, CFO & Treasurer
or
Paul M. Roberts, 978-326-4213
Director of Communications &
Investor Relations
proberts@analogic.com

SOURCE: Analogic Corporation