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May 11, 2004
FOR IMMEDIATE RELEASE

Patterson Dental Announces Acquisition of CAESY Education Systems; Strategic Transaction Provides Patterson’s Dental Business With Important New Value–Added Service

Patterson Dental Company ("PDCO") today announced that it has acquired CAESY Education Systems, Inc., the leading provider of electronic patient education services to dental practices in North America. Terms for the all–cash transaction were not disclosed.

Headquartered in Vancouver, Washington, CAESY provides dental practices with a range of communications media that educate patients about professional dental care, procedures and treatment alternatives. Through recordable CD/DVD media, computer programs and dentists’ websites, educational material is communicated in the dental waiting room, at chair side in the operatory and in patients’ homes. These communications tools are designed to influence patient decisions about services in an efficient, cost–effective manner. CAESY will be integrated into the Patterson Dental Supply unit.

Scott R. Kabbes, president of Patterson Dental Supply, Inc., commented, “Through this strategic acquisition, we are equipping our dental sales force with an important value–added service that will further strengthen and differentiate Patterson’s position as a full–service provider in the dental marketplace. CAESY has made strong progress with a limited sales force at penetrating the North American dental market with its industry–leading patient education systems. This makes us believe that future sales growth should accelerate once these services are fully integrated with our current offerings and marketed by Patterson’s extensive field sales organization. In all, this acquisition represents a promising, long–term growth opportunity for our dental operations.”

CAESY’s products have been marketed at dental trade shows and through an expanding sales force of approximately 20 territory representatives. With 2003 annual sales totals in excess of $9.0 million, CAESY is expected to have a minimal impact on consolidated earnings during its first year as part of Patterson after giving effect to the amortization of intangibles.

DCA Partners represented CAESY in this transaction.

About Patterson Dental Company
Patterson Dental Company is a value–added distributor serving the dental, companion–pet veterinarian and rehabilitation supply markets.

Dental Market
As Patterson’s largest business, Patterson Dental Supply provides a virtually complete range of consumable dental products, equipment and software, turnkey digital solutions and value–added services to dentists and dental laboratories throughout North America.

Veterinary Market
Webster Veterinary Supply is the nation’s second largest distributor of consumable veterinary supplies, equipment, diagnostic products, vaccines and pharmaceuticals to companion–pet veterinary clinics.

Rehabilitation Market
AbilityOne Products Corp. is the world’s leading distributor of rehabilitation supplies and non–wheelchair assistive patient products to the physical and occupational therapy markets. The unit’s global customer base includes hospitals, long–term care facilities, clinics and dealers.

This release contains forward–looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward–looking statements are information of a non–historical nature and are subject to risks and uncertainties that are beyond the Company’s ability to control. The Company cautions shareholders and prospective investors that the following factors, among others, may cause actual results to differ materially from those indicated by the forward–looking statements: the ability to integrate CAESY and other recent acquisitions into Patterson’s operations in a timely manner; competition within the dental, veterinary, and rehabilitative and assistive living supply industries; changes in the economics of dentistry, including reduced growth in expenditures by private dental insurance plans, the effects of economic conditions and the effects of healthcare reform, which may affect future per capita expenditures for dental services and the ability and willingness of dentists to invest in high–technology products; the effects of healthcare–related legislation and regulation which may affect expenditures or reimbursements for rehabilitative and assistive products; changes in the economics of the veterinary supply market, including reduced growth in per capita expenditures for veterinary services and reduced growth in the number of households owning pets; the ability of the Company to maintain satisfactory relationships with its sales force; unforeseen operating risks; and risks associated with the dependence on manufacturers of the Company’s products. Forward–looking statements are qualified in their entirety by the cautionary language set forth in the Company’s filings with the Securities and Exchange Commission.

Contact Information

Patterson Dental Company
St. Paul R. Stephen Armstrong :: 651.686.1600

Equity Market Partners
Richard G. Cinquina :: 904.261.2210 or 800.522.1744

 

 

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