Waukesha, Wisconsin-based GE Medical Systems finalized an agreement on the last day of 2000 to buy the 50% Elscint (NYSE:ELT) owned in ELGEMS for $30 million.

ELGEMS is a joint venture GE Medical and Elscint formed in 1997 to manufacture nuclear imaging systems.

ELGEMS, also based in Haifa, is responsible for the research, development, engineering and manufacturing of all GE Medical gamma cameras and other nuclear imaging and PET positron emission tomography - products.

GE Medical and ELGEMS pioneered the development of the revolutionary "Hawkeye" imaging system, an imaging system that combines the anatomic delineation of computed tomography - CAT scanning - with the functional imaging capabilities of nuclear medicine.

TheStreet Recommends

"For more than three years GE has been building a global presence in nuclear imaging through the ELGEMS joint venture," said Beth Klein, Vice President and General Manager of Global Functional Molecular Imaging (Nuclear Medicine/PET) for GE Medical. "ELGEMS has contributed significantly to GE Medical's nuclear imaging business. The strategic supply agreement with Elscint has played a role in our success.

Elscint will continue to supply most of the components used in ELGEMS nuclear imaging products.