ALARIS Medical Announces International Agreements; Expects to See Revenue Contributions Next Year.

SAN DIEGO--(BUSINESS WIRE)--Sept. 23, 1997--ALARIS Medical Inc. (NASDAQ:ALRS) Tuesday announced that its ALARIS Medical Systems Inc. subsidiary has entered into two agreements that support the company's international growth strategy and are expected to contribute to international sales beginning next year.

President and Chief Executive Officer William J. Mercer said: "The international marketplace represents one of our best growth opportunities, and we are focused on expanding our product offering across a very healthy base business. In addition, as we go direct in even more markets, agreements such as these will allow us to better leverage our strong global distribution channel."

"These products complement our infusion therapy systems business definition very well, and we expect to rapidly penetrate our customer base," said Henk van Rossem, vice president and general manager of the ALARIS Medical international group.

"By selecting quality products and partners, we expect to achieve our goal of increasing international revenues from the current 35% to over 50% of total ALARIS Medical revenues in the year 2000," van Rossem added.

Tuesday's announcements include:

--Agreement to distribute Micrel's Rythmic ambulatory pump in Europe, Australia and Canada.

--Agreement to distribute VENETEC International's StatLock securement devices in Europe, Australia and the Middle East.

Micrel Rythmic Ambulatory Pump Agreement

In a distribution agreement with Micrel Microelectronic Applications Centre EPE, ALARIS Medical Systems will distribute the Micrel Rythmic Ambulatory Pump in key health care markets outside the United States, including European Union (EU) countries, Australia and Canada.

ALARIS Medical European Homecare Activities Business Manager Per Persson said, "We will now be able to serve ambulatory patients with a reliable and user-friendly intravenous pump for both containers and syringes."

"We are more than happy to line up with ALARIS Medical as a strong global player in infusion therapy. The ALARIS international intravenous sales force will be able to maximize its sales calls, while it offers Micrel a major partner," said Nikitas Machlis, director of Micrel.

"Our considerable R&D efforts over the last few years will not end here; we will continue to expand the Rythmic program," added Alexandre Tsoukalis, director and technical manager of Micrel.

Micrel is a private company based in Athens, Greece, with design and production capabilities. The company produces a number of patented and CE-marked ambulatory infusion pumps, and is certified to ISO 9001 and EN 46001 standards.

VENETEC International StatLock Agreement

In a separate and unrelated agreement, ALARIS Medical Systems has entered into a marketing and distribution agreement with VENETEC International to distribute StatLock securement devices in key health care markets outside the United States, including European Union (EU) countries, Australia and the Middle East.

"This is a perfect complement to our current product line of intravenous infusion pumps and related administration sets," said van Rossem.

"The StatLock line, used in place of tape in intravenous (IV) delivery therapy, will offer a reliable securement of the infusion line to the IV access device, improving both patient care and convenience for health care workers," said Aymeric Harmant, business manager for ALARIS Medical's European disposables activities.

"This agreement allows VENETEC to access markets which have been unavailable to us in the past," said VENETEC Chief Executive Officer Dr. Steven Bierman. "As a major strategic partner, ALARIS Medical Systems will be able to maximize penetration of our products in those markets," added Mark Hassett, vice president of sales of VENETEC.

An innovative developer and marketer of StatLock medical devices, VENETEC International has a product line which focuses on improving catheter securement. The company currently has more than two dozen domestic and international patents covering a vast array of catheter securement devices. Privately held, VENETEC International is based in Mission Viejo, Calif.

ALARIS Medical, through its operating company ALARIS Medical Systems, is a leader in the international infusion systems market. Based on installed base of infusion pumps, ALARIS Medical has a No. 1 or 2 market position in 11 Western European countries, the number 3 market position in Germany and Italy, the largest installed base of infusion pumps in Australia and Canada, and a developing position in Latin America and Asia.

Previously known as Advanced Medical Inc., the company announced a name change to ALARIS Medical Inc. in May 1997. Its operating company, ALARIS Medical Systems Inc., is known for its IMED and IVAC brand names of intravenous infusion therapy systems. The company's principal line of business is the design, manufacture and marketing of intravenous infusion therapy products, periodic patient monitoring instruments and related disposables.

ALARIS Medical's products are distributed to more than 120 countries worldwide. In addition to its San Diego world headquarters and manufacturing facility, the company also operates manufacturing facilities in Creedmoor, N.C.; Basingstoke, Hampshire, U.K.; and Tijuana, Mexico. -0-

This news release contains forward-looking statements that are based largely upon the company's expectations for demand and acceptance of new and existing products, technologies and opportunities, regulatory approvals and market and industry segment growth. Actual results could vary materially from these expected results due to a variety of factors, including, without limitation, changes in the market, competition, government regulation and foreign operations. Such risk factors are detailed in the Securities and Exchange Commission filings of Advanced Medical Inc., including Form 10-K for the year ended Dec. 31, 1996, and the Registration Statement on Form S-4, as amended, of ALARIS Medical Systems Inc., IVAC Overseas Holdings Inc. and IMED International Trading Corp., dated Sept. 9, 1997.

CONTACT: Alaris Medical Inc., San Diego

Barbara Burkett, 619/458-7038

or

The Financial Relations Board, 310/442-0599

Stacy Roughan, general information contact

Moira Conlon, investor/analyst contact