Merger Announcement

RNS Number:3648K
Spacelabs Healthcare Inc.
20 December 2007

OSI Systems, Inc. -- Spacelabs Healthcare Merger Announcement

HAWTHORNE, CA--(Marketwire - December 20, 2007) - OSI Systems, Inc., announces
today that it has increased its beneficial ownership in Spacelabs Healthcare,
Inc. ("Spacelabs") (LSE: SLAB) to more than 90%. Pursuant to its previously
published plans, OSI Systems intends, within the next 10 business days, to
complete its acquisition, at 100p per share, of all shares of Spacelabs through
a merger whereby Spacelabs will become a wholly owned subsidiary of OSI Systems.
At the point of the merger, the remaining stockholders of Spacelabs will have a
right to consideration in the amount of 100p per share. A notification of the
merger, together with details regarding procedures for claiming the
consideration, and related information, will be delivered to Spacelabs
stockholders shortly after the execution of the merger.

Spacelabs' Fiscal 2007 Annual Report, recently distributed to shareholders and
available on the Spacelabs website, describes a challenging year for the company
and the actions that management has taken to turn the situation around. On
November 12, 2007, Spacelabs announced that its revenues for the quarter ended
September 30, 2007 were up 17% as compared with the prior-year period, and
income from operations for the period had improved to approximately $1 million,
compared with a loss of approximately $4.2 million during the prior-year period.
At the Spacelabs Annual Shareholders' Meeting on December 7, 2007 it was further
announced that Spacelabs' business is on course to meet expectations for the
first half of fiscal 2008.

This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Such statements include information
regarding the Company's expectations, goals or intentions about the future,
including the Company's predictions with regard to the prospective performance
of, and market acceptance of, its products. The actual results may differ
materially from those described in or implied by any forward-looking statement.
Other important factors are set forth in our Securities and Exchange Commission
filings. All forward-looking statements speak only as of the date made, and we
undertake no obligation to update these forward-looking statements. 

Enquiries:

OSI Systems, Inc.
Tel: [phone]
Jeremy Norton



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