Malcolm Baldrige Criteria for Performance Excellence in the Medical Device Industry

1. Malcolm Baldrige Criteria for Performance Excellence in the Medical Device Industry Dickson Consulting 351 Old Babcock Trail Gibsonia, PA 15044 724-272-1527 rdickson@nauticom.net Dickson Consulting

2. Malcolm Baldrige Criteria • Top down approach • Leadership in each functional area of the organization • Intended to promote quality, not simply an award • Fits well with medical device industry regulatory requirements • Additional information on Malcolm Baldrige National Quality Award (“MBNQA”)—www.baldrige.nist.gov/ Dickson Consulting

3. Medrad Inc.-Medical Device Company That Won MBNQA • Medrad is a provider of medical devices and services that enable and enhance imaging procedures of the human body. Used in diagnostic imaging, Medrad's product offerings include a comprehensive line of vascular injection systems, magnetic resonance surface coils and patient care products, and equipment services. Total 2005 revenues were $411 million. • Medrad is a 2003 recipient of the Malcolm Baldrige National Quality Award. • The company’s world headquarters is near Pittsburgh, Pennsylvania. Medrad is a U.S. affiliate of Schering AG, Germany (NYSE:SHR). • Additional information on the Medrad’s award: -www.medrad.com/about-medrad/mbnqa/index.html -www.nist.gov/public_affairs/baldrige2003/Medrad_3.3.04.pdf Dickson Consulting

4. Specific Baldrige Criteria • Baldrige criteria available for: -Business (a medical device company perspective) -Health Care (a medical device company customer perspective) Dickson Consulting

5. Baldrige Criteria for Performance Excellence • Leadership • Strategic planning • Customer and market focus • Measurement, analysis and knowledge management • Human resources focus • Process focus • Business results Dickson Consulting

6. Why Baldrige? • Framework not prescriptive • All inclusive • Focus on common requirements • Adaptable • Leading edge of management practices Dickson Consulting

7. Self-Assessment • Identify boundaries of the organization • Select champions for business categories • Decide on format and scope • Prepare organizational profile • Practice self assessment techniques Dickson Consulting

8. Self-Assessment-Continued • Select business category teams • Share responses/finalize findings • Prioritize key strengths/opportunities for improvement • Develop and implement an action plan for improvement • Evaluate and improve your self-assessment and action process Dickson Consulting

9. Integration of the Baldrige Criteria • Integrated strategy -Cross functional approach -One long-term strategy • Integrate with: -Medical device regulatory requirements -Performance management system -Sarbanes Oxley -Toyota Production System concepts -Six Sigma -Economic value added (EVA) -ISO -Benchmarking Dickson Consulting

10. Dickson Consulting Presentations Available • Critical Success Factors for a Medical Device Company • Listing on the London Stock Exchange AIM Market • Overview of the Stark Laws • Medical Device Industry Updates - June 23, 2006 - June 30, 2006 - July 7, 2006 - July 14, 2006 Dickson Consulting

11. Services of Dickson Consulting(With a Focus on Medical Device Companies) • Board of Directors representation • Designated financial expert • CEO/COO/CFO services • Strategic planning facilitation • Financing assistance • Exit strategy and M&A assistance • Other special projects Dickson Consulting

12. Disclaimers • This report is not intended to provide investment advice or any other advice on any company mentioned. • The information in this report is believed to be correct but no assurances are provided that the information is correct. • Events may have occurred that are significant that are not mentioned in this report. Dickson Consulting