North American Scientific signs definitive agreement

North American Scientific has entered into a definitive agreement to sell its Nomos Radiation Oncology business to privately-held, Best Medical International, in a transaction valued at approximately US$3.6 million. The transaction is subject to customary conditions and is expected to close by the end of September, 2007.

"Our Agreement with Best Medical represents the achievement of a major milestone in our strategy to build shareholder value through the focus on our core brachytherapy business," said John Rush, President and Chief Executive of North American Scientific. "The transaction will allow us to focus our resources on the marketing and development of innovative brachytherapy products for the treatment of cancer, including the ClearPath HDR and ClearPath CR for the treatment of breast cancer. Our goal is to increase our participation in the growing breast and prostate cancer markets, which we believe represent a total US addressable market opportunity of more than US$800 million. We also believe this transaction will benefit the customers and employees of Nomos in the long-term. Best Medical is expected to continue operation of the Nomos business, and to invest in the development of next-generation products. This transaction represents a win-win outcome for all involved."