ELT Elster Grp. SE American Depositary Shares, Each Representing One-Fourth of AN Ordinary Share

Elscint Ltd. Reports First Quarter 2005 Results TEL AVIV, Israel, June 1 /PRNewswire-FirstCall/ -- Elscint Ltd. (NYSE: ELT), a subsidiary of Elbit Medical Imaging Ltd. (NASDAQ:EMITF), today announced its results for the quarter ended March 31, 2005. First Quarter Results Consolidated revenues for the first quarter of 2005 were New Israeli Shekel ("NIS") 71.4 million (US$16.4 million), compared to NIS 66.1 million reported in the first quarter of 2004. Revenues from hotel operations and management increased to NIS 54.5 million (US$12.5 million) compared to NIS 52.1 million reported in the corresponding quarter last year. This increase is attributed mainly to (i) an increase in revenues from the apartment hotel in Bucuresti Romania, the Victoria Park Plaza hotel in London and the Victoria Park Plaza hotel in Amsterdam; and (ii) a devaluation of the NIS against the Pound Sterling and the Euro, which caused an increase in NIS revenues, reported from our hotels operations. This increase was offset, in part, by a decrease in the revenues of the Aquotopia attraction in Belgium. Revenues from the Arena commercial and entertainment center in Herzlia, Israel ("the Arena") were NIS 13.6 million (US$3.1 million) compared to NIS 10.8 million in the first quarter of 2004. This increase is attributed mainly to the fact that during the first quarter of 2005, the Arena attained full-scale operations, including the operations of the entertainment attractions, which had not been active during the first quarter of 2004. Gross profit for the first quarter of 2005 was NIS 19.5 million (US$4.5 million) compared to NIS 19.7 million in the corresponding quarter last year. Operating loss in the first quarter of 2005 was NIS 5.4 million (US$1.2 million) compared to NIS 4.9 million in the first quarter of 2004. This increase is due to an increase in initiation expenses attributed mainly to expenses incurred with respect to Elscint's unsuccessful participation in the tender offer for the award of the franchise to operate a television channel in Israel. It was offset in part by a decrease in selling and marketing expenses attributable to the Arena. Loss from continuing operations for the first quarter of 2005 was NIS 16.4 million (US$3.8 million), or NIS 1.02 (US$0.23) basic loss per share, compared to of NIS 20.1 million, or NIS 1.20 basic loss per share in the corresponding quarter last year. This improvement is primarily due to an increase in other income, net to NIS 2.9 million (US$0.7 million), resulting mainly from the dividend received from EMI in respect of shares of EMI held by the Company, compared to other expenses, net of NIS 0.8 million in the corresponding quarter last year. Loss from discontinuing operation was NIS 0.9 million (US$0.2 million), or NIS 0.05 (US$0.01) basic loss per share in the first quarter of 2005, compared to NIS 1.2 million or NIS 0.07 basic loss per share in the corresponding quarter of last year. The first quarter of 2005 included a gain in the amount of NIS 3.5 million (US$0.8 million), or NIS 0.22 (US$0.05) basic earnings per share, which is the result of the accumulated effect for the year beginning January 1,2005 due to initially applying a new Israeli accounting standard. Loss for the first quarter of 2005 was NIS 13.8 million (US$ 3.2 million), or NIS 0.85 (US$0.20) basic loss per share, compared to NIS 21.3 million, or NIS 1.27 basic loss per share, in the corresponding quarter last year. Elscint Limited has interests in hotels in Western Europe, in hotel development projects principally in Western and Central Europe and in Arena commercial and entertainment center in Israel. This release contains certain forward-looking statements which involve known and unknown risks, uncertainties or other factors not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or other expectations implied by these forward-looking statements. These factors include, but are not limited to, those detailed in the Company's periodic filings with the Securities and Exchange Commission. For Further Information: Company Contact Investor Contact Marc Lavine Kathy Price Elscint, Ltd. The Anne McBride Company +972-3-608-6011 +212-983-1702 x.212 ELSCINT LIMITED CONDENSED CONSOLIDATED BALANCE SHEETS (1) Convenience translation March 31, December 31, March 31, 2005 2004 2004 2005 (Unaudited) (Audited) (Unaudited) US$ (NIS thousands) (Thousands) ASSETS Current Assets Cash and cash equivalents 30,496 70,315 41,777 6,993 Short-term investments and deposits 175,499 161,669 179,179 40,243 Accounts receivable - trade 15,653 19,274 17,209 3,589 Receivables and other debit balances 16,074 24,716 16,256 3,686 Hotels inventories 2,337 2,982 2,433 536 ------- ------- ------- ------- 240,059 278,956 256,854 55,047 Long-Term Receivables and Investments Deposits, loans and long-term receivables, net 41,811 (*)41,518 39,992 9,588 Investments in investee companies and other 40,183 (*)63,938 41,436 9,214 ------- ------- ------- ------- 81,994 105,456 81,428 18,802 Fixed Assets 2,211,854 2,089,475 2,185,325 507,189 Other Assets and Deferred Expenses 12,831 9,617 12,649 2,942 Assets Related to Discontinuing Operation 13,941 15,979 14,700 3,197 --------- --------- --------- ------- 2,560,679 2,499,483 2,550,956 587,177 ========= ========= ========= ======= (1) Prepared in accordance with Israeli GAAP. (*) Reclassified. ELSCINT LIMITED CONDENSED CONSOLIDATED BALANCE SHEETS (1) Convenience translation March 31, December 31, March 31, 2005 2004 2004 2005 (Unaudited) (Audited) (Unaudited) US$ (NIS thousands) (Thousands) LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Short-term credits 144,002 428,303 135,429 33,020 Accounts payable - trade 46,017 45,219 46,624 10,552 Payables and other credit balances 65,993 78,059 56,357 15,133 ------- ------- ------- ------- 256,012 551,581 238,410 58,705 Long-Term Liabilities 1,335,277 897,425 1,325,803 306,186 Liabilities Related to Discontinuing Operations 70,654 83,382 71,410 16,201 Minority interest 30,967 29,308 32,453 7,101 Shareholders' equity 867,769 937,787 882,880 198,984 --------- --------- --------- --------- 2,560,679 2,499,483 2,550,956 587,177 ========= ========= ========= ========= (1) Prepared in accordance with Israeli GAAP. ELSCINT LIMITED CONDENSED CONSOLIDATED STATEMENT OF OPERATION (1) Convenience translation March 31, December 31, March 31, 2005 2004 2004 2005 (Unaudited) (Audited) (Unaudited) US$ (NIS thousands) (Thousands) Revenues Operating and managing hotels 54,543 52,087 218,365 12,507 Commercial center operations 13,563 10,772 55,263 3,110 Asset leasing 3,305 3,280 13,238 758 ------- ------- ------- ------- 71,411 66,139 286,866 16,375 Cost of revenues Hotels operations and management 37,294 34,010 137,622 8,552 Commercial center operations 13,847 11,543 59,885 3,175 Asset leasing 759 857 3,175 174 ------- ------- ------- ------- 51,900 46,410 200,682 11,901 Gross profit 19,511 19,729 86,184 4,474 Hotels' depreciation, amortization and operation expenses 13,982 14,470 64,513 3,206 Initiation expenses 3,129 177 1,611 717 Selling and marketing expenses 914 3,540 14,046 210 General and administrative expenses 6,846 6,436 27,608 1,570 ------- ------- ------- ------- 24,871 24,623 107,778 5,703 Operating loss before finance expenses, net (5,360) (4,894) (21,594) (1,229) Finance expenses, net (11,410) (11,462) (34,805) (2,616) ------- ------- ------- ------- Operating loss after finance expenses, net (16,770) (16,356) (56,399) (3,845) Other income (expenses), net 2,869 (758) (9,361) 658 ------- ------- ------- ------- Loss before income taxes (13,901) (17,114) (65,760) (3,187) Income taxes (tax benefits) 660 1,243 (647) 151 ------- ------- ------- ------- Loss after income taxes (14,561) (18,357) (65,113) (3,338) Share in loss of an associated company (1,472) (1,512) (6,611) (338) Minority interest in income of a subsidiary (396) (206) (724) (91) ------- ------- ------- ------- Loss from continuing Operations (16,429) (20,075) (72,448) (3,767) Net income (loss) from discontinuing operation (855) (1,190) 11,067 (196) Accumulative effect for the year start due to change in accounting method 3,495 - - 801 ------- ------- ------- ------- Loss (13,789) (21,265) (61,381) (3,162) ======= ======= ======= ======= (1) Prepared in accordance with Israeli GAAP. ELSCINT LIMITED CONDENSED CONSOLIDATED STATEMENT OF OPERATION (1) Convenience translation March 31, December 31, March 31, 2005 2004 2004 2005 (Unaudited) (Audited) (Unaudited) US$ (NIS thousands) (Thousands) Basic earnings (loss) per ordinary share (NIS 0.05 par value) from: Continuing operations (1.02) (1.20) (4.50) (0.23) Discontinuing operation (0.05) (0.07) 0.69 (0.01) Accumulative effect for the year start due to change in accounting method 0.22 - - 0.05 ------- ------- ------- ------- (0.85) (1.27) (3.81) (0.19) ======= ======= ======= ======= (1) Prepared in accordance with Israeli GAAP. DATASOURCE: Elscint Ltd. CONTACT: Company: Marc Lavine of Elscint, Ltd., +972-3-608-6011, ; or Investor: Kathy Price of The Anne McBride Company, +1-212-983-1702 x.212, , for Elscint Ltd.

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