ALARIS Medical Signs Single-Source Disposables Agreement With National Acquisition Center for VA Hospitals.

Business Editors/Health &Medical Writers

SAN DIEGO, Calif.--(BUSINESS WIRE)--Feb. 17, 2000

Three-Year Blanket Purchase Agreement Covers

Needle-Free Infusion Systems

ALARIS Medical Inc. (AMEX:AMI) today announced that its wholly owned operating subsidiary, ALARIS Medical Systems Inc., has signed a new three-year, single-source blanket purchase agreement with the National Acquisition Center, Department of Veterans Affairs (VA), for needle-free extension sets and components incorporating the company's award-winning SmartSite(R) needle-free valve technology.

Effective January 2000, the contract is an agreement for the company to provide SmartSite(R) needle-free valve ports for intravenous administration extension sets, access devices and vial dispensing to approximately 172 hospitals in the VA hospital system. The company estimates it will generate revenue of more than $5.6 million over the life of the contract.

The adoption of needle-free systems has accelerated due to the increased state and federal legislative activity focused on needlestick prevention in U.S. healthcare facilities. The states of California, Tennessee, Maryland and Texas have led the way in enacting needle safety legislation during 1999, while an additional 22 states have pending or proposed bills introduced.

According to David L. Schlotterbeck, president and chief executive officer, ALARIS Medical, &uot;We expect that this new VA agreement, in combination with increased emphasis on the adoption of needle-free systems for greater healthcare worker safety, will result in continued solid growth in our SmartSite(R) family of disposables during the year 2000.&uot;

ALARIS Medical Systems Inc. is known for its IMED(R) and IVAC(R) brand names of intravenous infusion therapy systems and Instromedix(R) cardiac event recorders and pacemaker follow-up 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.

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 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 ALARIS Medical Inc. including Form 10-K for the year ended December 31, 1998.