ALARIS Medical Systems Awarded Four-Year Mandatory Blanket Purchase Agreement by the Department of Veterans Affairs.

Business Editors/Health/Medical Writers

SAN DIEGO--(BUSINESS WIRE)--Feb. 11, 2004

ALARIS Medical Systems Inc. (NYSE: AMI), developer of products for the safe delivery of intravenous (IV) medications, announced today that it has signed a four-year mandatory Blanket Purchase Agreement (BPA) with the Department of Veterans Affairs (VA) to provide the SmartSite(R) Needle-Free System to 50 States, the District of Columbia and Puerto Rico. The contract extends through Feb. 15, 2008.

The award-winning SmartSite Needle-Free System offers a comprehensive product line, including administration sets, gravity sets, extension sets and components, which help eliminate the need for needles from the IV process and thus greatly reduces the danger of needle stick injuries to caregivers.

Jake St. Philip, vice president and general manager of ALARIS Medical Systems' North American Business Unit, said, "The SmartSite Needle-Free System provides safety-enhancing performance for patient comfort and the support nurses need at the bedside, which has earned us a reputation for leadership in needle-free technology. This leadership stems from a commitment to and focus on IV medication safety at the bedside."

This contract continues the relationship between ALARIS Medical Systems and the VA for the SmartSite Needle-Free products, which began in January 2000 with a four-year contract through Feb. 14, 2004.

About The Department of Veterans Affairs

The Department of Veterans Affairs (VA) was established on March 15, 1989, succeeding the Veterans Administration. It is responsible for providing federal benefits to veterans and their dependents. Headed by the Secretary of Veterans Affairs, VA is the second largest of the 15 Cabinet departments and operates nationwide programs for health care, financial assistance and burial benefits. Additional information of the Department of Veterans Affairs can be found at the VA Web site at http://www.va.gov.

About ALARIS Medical Systems Inc.

ALARIS Medical Systems Inc. (NYSE: AMI) develops and markets products for the safe delivery of intravenous (IV) medications. The company's IV medication and infusion therapy delivery systems, software applications, needle-free disposables and related monitoring equipment are marketed in the United States and internationally. ALARIS Medical Systems' "smart" pumps, with the proprietary Guardrails(R) Safety Software, help to reduce the risks and costs of medication errors, help to safeguard patients and clinicians and gather and record clinical information for review, analysis and interpretation. The company provides its products, professional and technical support and training services to over 5,000 hospital and health care systems, as well as alternative care sites, in more than 120 countries through its direct sales force and distributors. With headquarters in San Diego, ALARIS Medical Systems employs approximately 3,000 people worldwide. Additional information on ALARIS Medical Systems can be found at http://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 the effect of legislative and regulatory changes affecting the health care industry, the potential of increased levels of competition, technological changes, the dependence of ALARIS Medical Systems upon the success of new products (including its proprietary Guardrails(R) Safety Software and the Medley(TM) Medication Safety System) and ongoing research and development efforts including obtaining regulatory approvals, and the amount of the company's indebtedness. Such risk factors are detailed in the Securities and Exchange Commission filings of ALARIS Medical Systems Inc., formerly known as ALARIS Medical Inc., including Form 10-K for the year ended Dec. 31, 2002, and other filings. On June 30, 2003 the two companies were merged. Subsequent SEC filings are available only for ALARIS Medical Systems Inc. The preliminary 2003 financial results referred to herein are subject to completion of audit by the company's independent accountants. The company assumes no obligation to update any forward-looking statements as a result of new information or future events or developments.