SonoSite and ATL pair ultrasound system sales

June 7, 2000

ATL Ultrasound will be able to bundle sales of the SonoSite 180 handheld ultrasound system with its own ultrasound systems, thanks to a contract revision signed this month.The agreement removes an exclusivity provision of a January 1999 contract and

ATL Ultrasound will be able to bundle sales of the SonoSite 180 handheld ultrasound system with its own ultrasound systems, thanks to a contract revision signed this month.

The agreement removes an exclusivity provision of a January 1999 contract and enables ATL, a Philips Medical Systems company, to include the SonoSite 180 system with sales of its ultrasound systems. In addition, it allows SonoSite to sell products to private offices as well as hospitals.

The agreement was necessary because SonoSite restructured a distribution contract with PSS World Medical that was signed last year. SonoSite struck an exclusive distributor agreement with PSS World Medical subsidiary Diagnostic Imaging for SonoSite 180 in the private-practice market (SCAN 8/4/99).

ATL produces a line of ultrasound machines called HDI, for high definition imaging, while SonoSite develops, sells, and manufactures a 5-pound handheld digital ultrasound system. The SonoSite 180 system was developed using licensed ATL technology and part of the SonoSite system is manufactured by ATL, said Tim Mickelson, president and CEO of ATL Ultrasound.

The 19 member countries of NATO will purchase the SonoSite 180 handheld ultrasound system for use on the battlefield (SCAN 4/12/00).

SonoSite and ATL Ultrasound signed a similar agreement in March of this year giving ATL exclusive rights to include SonoSite's SonoHeart handheld echocardiology device with sales of its own HDI ultrasound systems and with cardiac catheterization systems from Philips Medical Systems. The SonoHeart agreement covers the distribution of products in cardiology-related segments worldwide, with the exception of Japan. Distribution in Japan is covered under an agreement with Olympus Optical.