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 June 1, 1999

Colorado MEDtech excels with workers, growth market

BOULDER — What does it take to head The Business Report’s super stock list, as well as one of the best two-year stock price returns among Boulder County public companies?

According to Colorado MEDtech Inc. President John Atanasoff, it’s a combination of great employees and being in a market that’s growing at a rate of more than 20 percent a year.

Colorado MEDtech specializes in the design, development and manufacturing of medical devices. Products include DNA probe technology, imaging power systems such as MRIs, surgical instruments and Year 2000 medical compliance databases for hospitals.

Colorado MEDtech had 1998 revenues of $47.3 million, and Atanasoff expects that number to increase at least 30 percent by June 30, the end of fiscal year ’99. The company was recently listed 29th on the annual Business Week Hot Growth Companies index.

Although the medical device manufacturing field is growing at about 8 percent to 9 percent a year, the big growth area is in outsourcing, a market Atanasoff said is increasing at close to 25 percent a year.

“Only about 20 to 25 percent of medical device work is outsourced today. It’s a neat market niche,” Atanasoff said.

Colorado MEDtech is in an enviable position. The company has spent the last six years developing what Atanasoff calls a “very strong technical expertise” in the medical device outsourcing arena. MEDtech is an early entrant in an outsourcing market that’s expected to grow exponentially as more and more health-care companies merge and consolidate operations.

“Health-care mergers reduce the number of clients but leave just as many design and manufacturing opportunities,” Atanasoff said.

Colorado MEDtech was formed in 1992, the result of a merger between Rela, a custom product development and manufacturing company in Boulder, and Cybermedic, a Louisville-based developer and manufacturer of computerized cardiopulmonary equipment.

Colorado MEDtech is divided into five principal business units: Rela; Novel Biomedical Inc., which specializes in catheters and other medical disposable products; Respiratory Products Division, which supplies respiratory products to the $3 billion long-term health-care company Vencor; BioMed Y2K Inc., which markets a Year 2000 compliance database; and CMED Automation Division, a design, engineering and automation firm that builds robotic systems.

CMED occupies four facilities — a total of 150,000 square feet — in Boulder and Longmont. Atanasoff’s long-term goal is to centralize operations into two buildings.

Colorado MEDtech also owns Boulder’s Erbtec Engineering Inc., which specializes in high-performance radio frequency products. Two months ago, MEDtech expanded its robotic capabilities through the acquisition of Longmont-based Eclipse Automation Corp.

About three-quarters of Colorado MEDtech’s business is in outsourcing. The remaining 25 percent is devoted to proprietary products, an area that Atanasoff wants to expand. Earlier this year, CMED landed a contract to design all the MRI products for Hitachi Medical Systems.

BOULDER — What does it take to head The Business Report’s super stock list, as well as one of the best two-year stock price returns among Boulder County public companies?

According to Colorado MEDtech Inc. President John Atanasoff, it’s a combination of great employees and being in a market that’s growing at a rate of more than 20 percent a year.

Colorado MEDtech specializes in the design, development and manufacturing of medical devices. Products include DNA probe technology, imaging power systems such as MRIs, surgical instruments and Year 2000 medical compliance databases…

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