Span Diagnostics Ltd has informed BSE that the Company has promoted a new Company namely SPAN NIHON DIAGNOSTICS PVT LTD (SNKD) under the joint venture agreement signed with Nihon Kohden Corporation of Japan (NKC).

The following are the salient features of the agreement:

1. SNKD will manufacture of High Quality Reagents for Hematology Analyzers for distribution and sale in India under a license agreement with NKC.

2. SNKD will set up its manufacturing facilities at Sachin (Surat) in the state of Gujarat. The manufacturing operations are expected to start in September 2008.

3. Span will have an exclusive distribution rights for sale of the products in India. The agreement will be concluded before the commencement of manufacturing operations and will provide for tenure of the agreement and other matters.

4. On receipt of FIPB approval, equity stake of Span will be 45% with NKC holding remaining 55% of the equity.

5. On SNKD starting its manufacturing operations, the existing technology agreement between Span and NKC will be terminated.

Background

Nihon Kohden Corporation (NKC) is Japan’s leading manufacturer, developer and distributor of medical electronic equipments with subsidiaries in the USA, Europe and Asia and distributors in nearly every country in the world. NKC was founded in 1951 with the mission to improve the quality of life through advanced medical technology.

Span Diagnostics Ltd. (Span) is a pioneer and trend setter of high quality products for Pathology and Clinical Laboratories in the Indian Diagnostics Industry. Span is one of the leading players in Laboratory Automation System for Bio-Chemistry, Hematology, ELISA and Allergy Testing.

Span has twin alliance with NKC, distribution of their Hematology Analyzers in India and tie-up for Technology for manufacture of Reagents calibrated to their instruments; at its manufacturing facilities at Sachin (Surat).