The Healthcare Group reported revenues of $51.1 million for the
fourth quarter of fiscal 2005, compared to $45.4 million reported for
the fourth quarter of fiscal 2004. For the fiscal year ended June 30,
2005, revenues increased by $135 million, to $195.7 million from $60.7
million for fiscal 2004. 

Income from operations for the fourth
quarter of fiscal 2005 was $2.4 million, after Spacelabs-related
amortization and retention expenses of $786,000. For the fiscal year
ended June 30, 2005, income from operations was $8.4 million, after
Spacelabs-related amortization and retention expenses of $3.2 million.
The results for the fourth quarter and fiscal year 2005 were favorably
impacted by a change in the Healthcare Groups' estimated warranty
provision of approximately $2.1 million pre-tax due to lower than
expected warranty claims on a specific product.

For the past year the company has been exploring strategic alternatives
for its various business units. The company's Healthcare Group has
grown from approximately $11 million in annual revenues in fiscal 2003,
to $195.7 million in fiscal 2005, primarily as a result of the
acquisitions of Spacelabs and Blease. The company has engaged Collins
Stewart, a London-based investment bank to pursue the listing and
public offering of approximately 30% to 35% of the equity in Spacelabs
Healthcare, Inc., a newly formed Delaware corporation composed of the
Healthcare operations of OSI: Spacelabs Medical, Blease Medical,
Dolphin Medical and Osteometer MediTech.