Vital Images Inc has renewed a marketing and distribution agreement with Toshiba Corporation, Medical Systems Company (Toshiba), headquartered in Tochigi, Japan.Under the agreement, Toshiba will continue to offer Vital Images' Vitrea 2 software through its subsidiaries and distributors in more than 50 countries in North and South America, Europe, the Middle East, Africa, Australia and Asia, except Japan.Toshiba has been offering Vitrea 2 software as the 3D medical imaging product of choice to customers purchasing Toshiba's Aquilion CT scanners.The agreement also renews Vital Images' marketing and distribution agreement with Toshiba America Medical Systems, the U.S. subsidiary of Toshiba.

"Our marketing and distribution agreement with Toshiba is a mutually beneficial partnership, and we are delighted to see it continue," said Jay D. Miller, Vital Images president and chief executive officer."In the third quarter of 2002, our last publicly reported quarter, sales to Toshiba contributed more than $2 million, or 37 per cent of our revenue, an 85-per cent increase over the third quarter of 2001.We believe Toshiba has been gaining CT market share with the Aquilion CT scanner, largely on the strength of its technology enhanced by Vitrea 2 software.The international aspects of this agreement provide an excellent expansion opportunity into overseas markets."

"Our Aquilion CT scanning technology has advanced to produce an enormous number of very high quality 2D images per scanning procedure," said Toshihiro Rifu, senior manager, CT and Nuclear Medicine Department, Toshiba Corporation, Medical Systems Company."When coupled with our scanning technology, Vitrea 2 software produces extraordinary images.Our physician customers value Vitrea 2 software for its speed and ease of use."

The new agreement includes a minimum worldwide revenue commitment from Toshiba of more than $5.0 million and is effective through September 30, 2003. It can be renewed with the mutual consent of Vital Images and Toshiba.

For the nine months ended September 30, 2002, Vital Images revenue increased 40 percent to nearly $15 million over the same period of 2001. Revenue from core revenue components - software license fees and maintenance and services - rose 51 percent to $13 million over the same period. Net income for the first nine months of 2002 reached $373,000, or $0.04 per diluted share, compared with a net loss of $1.2 million, or $0.17 per diluted share, in the first nine months of 2001.

The company expects to announce its results for the fourth quarter and year ended December 31, 2002, on February 11, 2003.