ALARIS Medical Completes Acquisition of Instromedix; Acquisition Secures Telemedicine Technology, Cardiac Disease Diagnosis and Patient-Monitoring Capabilities.

SAN DIEGO--(BUSINESS WIRE)--July 20, 1998--ALARIS Medical, Inc. (Nasdaq:ALRS) and privately held Instromedix Inc. Monday jointly announced completion of the acquisition of the stock of Instromedix by the company's wholly owned subsidiary, ALARIS Medical Systems Inc.

The total consideration for the acquisition consisted of $51 million in cash, subject to certain adjustments, the assumption of approximately $5.1 million of indebtedness of Instromedix, and the payment of approximately $1.0 million of certain transaction expenses incurred by Instromedix relating to the acquisition.

The acquisition of Instromedix adds a portfolio of products that primarily address cardiac disease diagnosis, vital signs monitoring and management to the company's existing product lines, and focuses on the delivery of patient care in the alternate-site setting.

"The company believes that the convergence of infusion therapy, patient monitoring, specialty medical devices and advanced data management will bea clear, defining feature of health care in the next century," said William J. Mercer, president and CEO.

"The right combination of complementary technologies, products and companies will enable ALARIS Medical Systems Inc. to leverage its global infrastructure and distribution channels and become a leader in advanced medical instruments and specialty devices at the patient bedside and throughout the continuum of care."

Based in Hillsboro, Ore., Instromedix was founded in 1969. Instromedix's products fall into three major categories:

-- Arrhythmia Event Recorders which are portable devices used to

monitor, record and subsequently transmit cardiac events (including arrhythmia, the irregular beating of the heart) via a standard telephone line to a remote location;

-- Pacemaker Monitors which are portable devices used to help

physicians and patients monitor the performance and medical compliance of implantable pacemakers as recommended by manufacturers; and

-- The LifeSigns System which is a proprietary, computer-based

software and hardware system that enables remote monitoring, diagnosis and data capture of selected vital signs.

Instromedix's revenues are derived principally from the sale of products used in the alternate-site care setting, primarily in the patient's home or in the physician's office.

ALARIS Medical Inc., through 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, patient-monitoring instruments and related disposables.

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

Additional information on ALARIS Medical can be found at www.alarismed.com.

This news release contains forward-looking statements 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 ALARIS Medical Inc. including Form 10-K for the year ended Dec. 31, 1997.

    CONTACT:  ALARIS Medical Inc., San Diego
               Barbara Burkett, 619/458-7038
                    or
               Financial Relations Board, 310/442-0599
               Stacy Roughan, general information
               Marjorie Ornston, media
                    or
               Ketchum
               Kali Coffman, trade contact, 310/444-1394