CBS exposes firm's CIA connections

March 15, 1995

The producers of ``60 Minutes'' dedicated about 12 minutes ofits Feb. 26 broadcast to investigate ties between the CIA andE-Systems, the Dallas-based company that has recently gained amajor stake in teleradiology and PACS technologies. CBS complimented

The producers of ``60 Minutes'' dedicated about 12 minutes ofits Feb. 26 broadcast to investigate ties between the CIA andE-Systems, the Dallas-based company that has recently gained amajor stake in teleradiology and PACS technologies.

CBS complimented E-Systems for being the best in the world whenit comes to building sophisticated surveillance and communicationssystems, but it faulted the company for the veil of secrecy thatsurrounds its dealing with the CIA and other federal intelligenceagencies. Of the $2 billion in annual sales reported by E-Systemsin 1994, 85% was classified, according to defense industry experts.60 Minutes claimed an estimated $800 million involves projectsso sensitive that the government denies they exist.

All this may comes as news to the PACS and teleradiology marketswhere E-Systems has recently made an impact. San Antonio-basedE-Med, a subsidiary formed by E-Systems to manage its teleradiologyinterests, gained over a 60% market share by purchasing teleradiologyvendors Advanced Video Product in October 1992 and Image Datain November 1994.

An arms-length relationship between E-Systems and its teleradiologyproperties has appeared to have been maintained through most ofE-Med's history. The only evidence of direct involvement camein mid-1993 when Linwood Givens, former director of E-Systems'imaging processing group, was appointed CEO of AVP replacing ThomasJ. Goliash, who moved to E-Med as vice president of business development.