Inverness Medical Innovations, Inc., a global leader in enabling individuals to take charge of their health at home through the merger of rapid diagnostics and health management, announced that it has entered into a definitive agreement with ACON Laboratories, Inc. and certain affiliates to acquire ACON's world-wide business of researching, developing, manufacturing, marketing and selling lateral flow immunoassay diagnostic test kits for the consumer, point-of-care and laboratory markets.

The acquired business includes tests sold within Inverness' focus areas of infectious disease, cardiology, drugs of abuse and women's health. In March 2006, Inverness acquired ACON's rapid diagnostics business for the United States, Canada, Europe (excluding Russia, the former Soviet Republics that are not part of the European Union and Turkey), Australia, Israel, Japan and New Zealand (the "First Territory"). As part of that transaction, Inverness and ACON entered into an agreement that provided that in the event certain financial performance and operating conditions were satisfied, Inverness would agree to buy and ACON would agree to sell ACON's rapid diagnostics business for the remainder of the world (the "Second Territory"). This "Second Territory" includes China, Asia Pacific, Latin America, South America, the Middle East, Africa, India, Pakistan, Russia and Eastern Europe.

ACON will retain its other worldwide in-vitro diagnostics businesses including diabetes, clinical chemistry and immunoassay products.

The aggregate purchase price for the acquired business will approximate $200 million, subject to final determination of ACON financial results for calendar year 2008, as well working capital and other customary adjustments. Inverness does not presently intend to obtain financing from outside sources for this acquisition. Instead, Inverness expects to self-finance the transaction from cash on hand and its ongoing cash flows, and has the ability to pay a portion (up to approximately 34%) of the purchase price in shares of Inverness common stock valued as of the date that the shares are issued. The purchase price will be paid in a series of payments, the first to occur at Closing and the last to occur in October 2011.

About Inverness Medical Innovations

By developing new capabilities in near-patient diagnosis, monitoring and health management, Inverness Medical Innovations enables individuals to take charge of improving their health and quality of life at home. Inverness' global leading products and services, as well as its new product development efforts, focus on infectious disease, cardiology, oncology, drugs of abuse and women's health. Inverness is headquartered in Waltham, Massachusetts.

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