ALARIS Medical Executes Amendment of Credit Agreement With Its Senior Lending Group.

Business Editors & Health/Medical Writers

SAN DIEGO--(BW HealthWire)--April 13, 2001

ALARIS Medical Inc. (AMEX:AMI) said today that its wholly owned operating subsidiary, ALARIS Medical Systems Inc., has executed an amendment to its bank credit agreement.

Among other provisions, the amendment calls for:

Revised covenants for 2001 through 2003 that were developed from

the Company's business plan for these years.

Access to a $20 million line of credit to provide operating

flexibility.

A mechanism for the Company to begin the process of retiring the 7

1/4% Convertible Debentures due January 15, 2002.

Details will be available when the Company files this amendment with the Securities and Exchange Commission as part of its full year 2000 Form 10-K filing planned for next week. A previously announced conference call with portfolio managers and analysts scheduled for April 17th to discuss full year 2000 financial results will also cover this amendment.

David L. Schlotterbeck, president and chief executive officer, said, "Completion of this amendment is an important step in executing the Company's strategy of developing and marketing patient care systems with increasing technological sophistication and patient safety focus. Consistent with our previous announcements, we have increased our investment in marketing and R&D in 2001 to implement this strategy."

Separately, the Company indicated that it plans to report its first quarter 2001 results on May 3. At that time, the Company anticipates reporting strong first quarter 2001 sales, up over 10 percent compared with the prior year's first quarter of $88.6 million. This would be the strongest first quarter sales result in the Company's history. Adjusted EBITDA, which certain investors consider a measure of debt service ability, is anticipated to show an increase from 2000's first quarter of $16.3 million in the 15 to 20 percent range.

The strong first quarter performance has increased the Company's cash balance from over $30 million at year-end 2000 to over $45 million at March 31, 2001.

About ALARIS Medical Systems

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 December 31, 1999. ALARIS Medical assumes no obligation to update any forward-looking statements as a result of new information or future events or developments.