Elmsford, NY - AFP Imaging Corporation (OTCBB: AFPC.OB) has entered into negotiations to acquire Quantitative Radiology, srl. ("QR") of Verona, Italy.

QR is the original as well as the leading global supplier for Dental CTs (using Cone Beam imaging technology) with about 400 units installed worldwide in the last few years. This state-of-the-art, low-dose imaging equipment produces three dimensional (3D) X-ray images for implantology. Dental 3D imaging are enhanced CT scans of the mouth and are a dynamic improvement over historical two-dimensional panoramic film images or outsourced high-radiation medical scans that have been utilized for the past 30 years. These units are used by implantologists, orthodontists, and oral surgeons to provide more information when diagnosing a patient's condition and jaw structure. It is anticipated that this three dimensional technology will become state of the art.

The dentist's incentive to purchase a dental CT system is to allow for an in-office, quicker completion of the prescribed procedure and treatment. Compared to the current practice of referring the patient to an off-premises medical CT, this will eliminate unnecessary higher dose radiation exposure and enhance patient convenience. The financial return to the dentist should be in approximately three years. The agreement is subject to the usual customary due diligence and approvals. Execution of a final agreement is expected soon.
QR manufactures these units in Verona, Italy and has dealer distributors throughout the world. QR's worldwide sales for 2005 were approximately 6.5 million Euro or about $8.5 million. QR's products have FDA clearance. Cone Beam Imaging equipment, in this product line, retails to the dentist between $150,000 and $220,000. AFP expects continuously to expand its design and software development efforts. Most important, while finalizing the acquisition, AFP and QR have executed exclusive distribution agreements with AFP for the territories of Canada and Latin America (excluding Brazil). The term of these agreements is for three years. Upon closing, AFP will have exclusive worldwide control of the distribution of QR products.

Dr. Roberto Molteni, AFP's Executive Vice President of Technology said, "We are very excited by this opportunity to expand our line of digital imaging products with Cone Beam Computed Tomography (CBCT), which is quickly becoming the diagnostic tool par excellence in dentistry and in other specialties. The combination of QR's leading market position, innovative technology know-how and AFP's global marketing skills will be a significant factor in the worldwide dental marketplace."

AFP Imaging is a diagnostic imaging supplier whose products are distributed worldwide with clinical applications for dental, veterinary and medical professionals. The Company's quality assurance program is ISO 9001 certified, an international standard. The Company's product line and digital imaging technologies are providing the gateway for future internal and external growth. Through its global distribution network, the Company has branded products in about 100,000 dental and medical facilities. The Company's products are distributed worldwide under various trademarked brand names that include AFP, DENT-X, and EVA. For additional corporate information please visit www.afpimaging.com and www.dent-x.com.

More Voices