ALARIS Medical Discusses Patient Care Systems Strategy At Annual Meeting.

Business Editors/Health & Medical Writers

NEW YORK--(BW HealthWire)--May 23, 2001

ALARIS Medical Inc. (AMEX:AMI) discussed with shareholders at its annual meeting today its Patient Care Systems strategy for growing the business of its operating subsidiary, ALARIS Medical Systems Inc.

David L. Schlotterbeck, president and chief executive officer, said, "We intend to provide unparalleled levels of patient and caregiver safety in what we refer to as our Patient Care Systems strategy. The cornerstone of this strategy is the MEDLEY(TM) Patient Care System, a modular medical technology platform that integrates infusion, patient monitoring and clinical best practice guidelines to achieve optimal outcomes. The MEDLEY(TM) System provides superior customer value by optimizing asset utilization, standardizing device programming, and, via the Guardrails(TM) Advisory System, providing passive protection from some of the most serious and costly medication errors -- those involving IV medications.

"Last week we shipped the first several hundred MEDLEY(TM) units to Hamilton Health Sciences Corporation in Hamilton, Ontario, Canada," Schlotterbeck said. "This shipment follows the most successful user trial in the company's history, with over 1.2 million hours of use with patients."

Schlotterbeck also told shareholders that the second MEDLEY(TM) system order from Clarian Health Partners in Indianapolis, Indiana, which was announced yesterday, is "more than twice as large as any order in the company's history."

Also at this meeting, William C. Bopp, senior vice president and chief financial officer, reviewed the company's financial condition with shareholders. He indicated that the company anticipates it will be profitable in 2003. Bopp commented, "It will require ALARIS Medical Inc. generating over $100 million of EBITDA (earnings before interest, taxes, depreciation and amortization) before we will report positive net income. Our current plans call for this to occur in 2003. Meanwhile, our cash flow is strong and we have sufficient resources to make all required interest and principal payments and to fund our growth plans."

ALARIS Medical Inc., through its operating company, ALARIS Medical Systems Inc., is known for its IMED(R) and IVAC(R) brand names of intravenous infusion therapy systems and patient monitoring products. 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 in 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. 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 restrictions contained in the instruments governing ALARIS Medical's indebtedness, the significant leverage to which it is subject, the effect of change in foreign currency exchange rates, the dependence of ALARIS Medical upon the success of new products and ongoing research and development efforts including obtaining regulatory approvals, the potential of increased levels of competition and technological changes. 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, 2000. ALARIS Medical assumes no obligation to update any forward-looking statements as a result of new information or future events or developments.