Acquisition refines technologies surrounding diabetes self-care and -diagnoses

Boston, MA — March 29, 2001 — Covington Associates, seasoned M & A advisors to technology and healthcare, today announced that its client, Inverness Medical Technology, Inc. ("IMT"), has completed its acquisition of San Diego-based LXN Corporation ("LXN"), a developer and provider of innovative products for improving management of diabetes. The acquisition extends IMT's array of "self-care" and "self-diagnostic" products related to various health issues, including diabetes and women's health. IMT issued approximately 795,000 shares of its common stock and $5.0 million in transaction expenses and employee benefits in connection with the acquisition.

In 1999, LXN debuted the In Charge™ Diabetes Control System, the first hand-held meter combining a rapid blood glucose test with a glycated protein self-test. Formerly available only through laboratory testing, glycated protein readings are well-established as the best means for obtaining an accurate picture of glucose levels, the major factor in managing the diabetic condition and reducing the risk of complications. Combined with existing IMT technology, LXN's core offering enhances the quality and accuracy of self-monitoring and -management devices which support and maintain the independence of the ever-increasing diabetic population worldwide.

"This acquisition marks a significant milestone for Inverness Medical as we continue to expand our array of diabetes self-management products to serve an ever broader spectrum of the diabetes population," said Ron Zwanziger, CEO of Inverness Medical, in a news release dated March 29, 2001. "This provides us with the opportunity to combine our advanced blood glucose monitoring sensor technology with LXN's 'GlucoProtein' technology in an effort to establish a new standard of care of diabetes self-management."

An estimated 6 percent of the U.S. population are living with diabetes, according to the National Institutes of Health; the World Health Organization sets worldwide incidence of people with the condition at 300 million by 2025. The combination of J&J and IMT technologies shows clear promise for improving the quality and range of self-care products related to diabetes, improving quality of life and level of independence for the diabetes population worldwide.

About Inverness Medical Technology, Inc.
IMT develops, manufactures, and markets innovative products focused primarily on diabetes self-management. The company's proprietary glucose monitoring systems are marketed worldwide by LifeScan, a Johnson & Johnson company. Inverness also markets other diabetes and women's health products to consumers, through its own established retail distribution networks, which include Wal-Mart, CVS, and Walgreens. IMT's manufacturing facilities are located in Inverness, Scotland; Galway, Ireland; and Yavne, Israel; a European sales office is located in Munich, Germany. Corporate headquarters are located in Waltham, Massachusetts. For more information, visit www.invernessmedical.com.

About Covington Associates
Covington Associates are seasoned M & A advisors to technology and healthcare. Focused exclusively on mergers and acquisitions, Covington Associates has established a track record of success based on deep domain experience and an unrivaled level of service from a team of senior advisors. Since 1991, the firm has successfully completed over 50 transactions ranging in size from $10 million to over $1 billion in e-services, software, IT services, and healthcare technologies. To learn more about Covington Associates, visit www.covingtonassociates.com.



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