ALARIS Medical Announces Agreement With Novation for Medication Safety Technology.

Business Editors & Health/Medical Writers

SAN DIEGO--(BW HealthWire)--April 23, 2002

ALARIS Medical Inc. (AMEX:AMI) and its wholly owned subsidiary ALARIS Medical Systems Inc. today announced an agreement to add a new product category to its Novation Infusion Agreement.

Novation is the supply company for VHA Inc. and University Health System Consortium (UHC), two national healthcare alliances. The newly created category -- Medication Safety Technologies -- will give the healthcare members of VHA contract access to the ALARIS MEDLEY(TM) Medication Safety System and Guardrails(TM) Safety Software.

Since the release of the Institute of Medicine Report stating that more than 50,000 people die annually from medical errors, there has been a growing emphasis on preventing errors in the delivery of healthcare. A large percentage of the most costly medical errors are medication errors related to powerful drugs that are delivered, or infused, directly into a patient's vein. Studies from leading medical institutions in the United States indicate that the delivery of intravenous drugs represents about 31 percent of all the serious and life-threatening medication errors. The healthcare industry as a whole has put new emphasis on revising patient safety programs to prevent loss of life, decrease length of hospital stay and reduce litigation and negative publicity. The MEDLEY Safety System with the Guardrails Safety Software was created to help address these problems.

According to Dave Schlotterbeck, ALARIS president and CEO, "Medication errors can occur at any stage of medication use during ordering, preparation or administration. Typically, technologies designed to intercept errors in the earlier stages of medication use are very time-consuming to implement. In contrast, implementing the MEDLEY and Guardrails technologies can be done quickly and immediately prevent IV medication errors at the point of care."

Traditionally known as the pioneer in intravenous large volume and syringe pumps, ALARIS has defined this new product category with its breakthrough innovations. At the heart of these new technologies is the Guardrails Safety Software, a proprietary application that resides inside the infusion therapy device. The Guardrails Software will allow institutions to program more than 1,000 safety limits and can be tailored by the hospital's medical staff to meet specific hospital needs, such as different patient types, different disease states, and different departments of the hospital. The MEDLEY Medication Safety System is a modular device with a new safety-enabling platform that incorporates the Guardrails Safety Software. While the Guardrails Software allows hospitals to implement their safety standards for patients with differing medication requirements, it is the MEDLEY system that brings those standards to the patient's bedside. The Guardrails product will also be available later this year for approximately 50,000 additional ALARIS infusion instruments already in service.

Dan Sweeney, vice president contract and program services for Novation, said, "We're excited to work with ALARIS and the MEDLEY technology to deliver a comprehensive medication error prevention solution that will enable hospitals to provide high levels of safety and care for patients throughout the VHA Membership."

Jake St. Philip, vice president and general manager of the North American business unit of ALARIS, said, "We applaud Novation taking a leadership position by offering VHA members a new category of breakthrough technology dedicated to reducing harmful medication dosing errors at the point of care." St. Philip added, "Patient safety is an important focus for VHA. The ALARIS Medication Safety Products will bring considerable value to VHA healthcare facilities."

About Novation

Based in Irving, Texas, Novation was established in 1998 and serves the purchasing needs of more than 2,300 members and affiliates of VHA and University Health System Consortium (UHC). Novation also serves more than 5,400 members of HealthCare Purchasing Partners International (HPPI), another group purchasing organization owned by VHA and UHC. The leading supply chain management company in healthcare, Novation manages more than $19 billion in annual purchases for VHA, UHC and HPPI members. For more information, go to http://www.novationco.com/. VHA, also based in Irving, is a nationwide network of more than 2,200 leading community-owned health care organizations and their physicians. It comprises 26 percent of the nation's community hospitals. For more information, contact www.vha.com.

About ALARIS Medical Systems Inc.

ALARIS Medical Inc., through its wholly owned operating company, ALARIS Medical Systems Inc., is a leading developer, manufacturer and provider of integrated intravenous infusion therapy and patient monitoring instruments and related disposables, accessories and services. ALARIS Medical's primary brands, ALARIS(R), IMED(R) and IVAC(R), are recognized throughout the world. ALARIS Medical's products are distributed in more than 120 countries worldwide. In addition to its San Diego world headquarters and manufacturing facility, ALARIS Medical also operates manufacturing facilities in Creedmoor, N.C.; Basingstoke, U.K.; and Tijuana, Mexico. Additional information on ALARIS Medical can be found at www.alarismed.com/.

This news release contains forward-looking statements as defined in the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Persons reading this release are cautioned that such forward-looking statements involve risks and uncertainties, including the effect of legislative and regulatory changes affecting the health care industry, the potential of increased levels of competition, technological changes, the dependence of ALARIS Medical upon the success of new products (including its proprietary Guardrails(TM) Safety Software and the MEDLEY(TM) Medication Safety System) and ongoing research and development efforts including obtaining regulatory approvals, restrictions contained in the instruments governing the company's indebtedness, and the significant leverage to which the company is subject. Such risk factors are detailed in the Securities and Exchange Commission filings of ALARIS Medical Inc. and ALARIS Medical Systems Inc., including Forms 10-K for the year ended December 31, 2001, and other filings. The company assumes no obligation to update any forward-looking statements as a result of new information or future events or developments.