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Devices Radiology Distribution

 News Release - April 12, 2007

EDAP Announces Details on Termination Agreement With HealthTronics

LYON, France, April 12 (HSMN NewsFeed) -- EDAP TMS S.A. (Nasdaq: EDAP ), the global leader in High Intensity Focused Ultrasound (HIFU) treatment of prostate cancer and the international leader in the development, production, and distribution of a wide portfolio of minimally invasive medical devices primarily for the treatment of urological diseases releases supplemental details on the conclusion of its Distribution Agreement with HealthTronics.

EDAP TMS announced that it has entered into an agreement with HealthTronics Surgical Services, Inc. to terminate its 2004 distribution agreement with HealthTronics originally entered into in February 2004 to pursue FDA approval of EDAP's Ablatherm-HIFU device for use in the United States.

Pursuant to the terms of the termination agreement,

* On April 4, 2007, HealthTronics exercised 200,000 warrants granted under the distribution agreement to acquire an equal number of EDAP's shares, paying an aggregate exercise price of $300,000. The 600,000 remaining warrants granted under the distribution agreement were cancelled. EDAP also agreed to file a registration statement under the Securities Act of 1933 to enable HealthTronics to resell its shares in transactions that are registered under the Securities Act.

* HealthTronics agreed to pay EDAP $600,000 after the resale registration statement has been effective for 60 days. EDAP may also receive additional cash compensation based on a formula related to the price at which HealthTronics resells the EDAP's shares in the future.

* HealthTronics agreed to transfer to EDAP one Ablatherm device and six lithotripters previously acquired by HealthTronics, and to return two Ablatherm devices already owned by EDAP. The transfer of these devices is part of the overall termination transaction and their value is included in the estimated transaction value.

The relevant EDAP parties and HealthTronics parties released each other from liabilities arising under the terminated distribution agreement, and agreed to indemnify each other for breaches of the termination agreement and certain liabilities arising from any claims related to the use of the Ablatherm-HIFU device and the conduct of the clinical study evaluating the Ablatherm-HIFU device.


EDAP TMS S.A. develops and markets Ablatherm, the most advanced and clinically proven choice for High Intensity Focused Ultrasound (HIFU) treatment of localized prostate cancer. HIFU treatment is shown to be a minimally invasive and effective treatment option with a low occurrence of side effects. Ablatherm-HIFU is generally recommended for patients with localized prostate cancer (stages T1-T2) who are not candidates for surgery or who prefer an alternative option, or for patients who failed radiotherapy treatment. The company is also developing this technology for the potential treatment of certain other types of tumors. EDAP TMS S.A. also produces and commercializes medical equipment for treatment of urinary tract stones using Extra-corporeal Shockwave Lithotripsy (ESWL).

For more information on the Company, contact Magnolia Investor Relations at (972) 801-4900, the Corporate Investor Relations Dept at +33 (0)4 78 26 40 46 or see the Company's web sites at and .

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In addition to historical information, this press release contains forward-looking statements that involve risks and uncertainties. These include statements regarding the Company's growth and expansion plans. Such statements are based on management's current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in these forward-looking statements. Factors that may cause such a difference include, but are not limited to, those described in the Company's filings with the Securities and Exchange Commission. Ablatherm- HIFU treatment is in clinical trials but not yet FDA approved or marketed in the United States.

This press release does not constitute an offer to sell, or a solicitation of an offer to buy, any securities of EDAP TMS S.A. in the United States or any other jurisdiction.

Source: EDAP TMS

Issuer of this News Release is solely responsible for its content.
Please address inquiries directly to the issuing company.

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