ALARIS Medical and Premier Enhance Existing Agreement With SmartSite Needle-Free System.

Business Editors & Health/Medical Writers

SAN DIEGO--(BW HealthWire)--Jan. 8, 2001

ALARIS Medical, Inc. (AMEX:AMI) announced today that the SmartSite(R) needle-free system manufactured by its ALARIS Medical Systems Inc. subsidiary, a leader in the manufacturing of needle-free valves, has been added to an existing supply agreement with Premier Inc., one of the nation's largest healthcare alliances.

The amended terms of this agreement with Premier begin Jan. 1, 2001 until Jan. 31, 2004. Through the amended agreement, ALARIS Medical Systems will be one of two companies providing needle-free infusion delivery devices, large volume infusion pumps and compatible accessories to Premier member health systems and hospitals under Premier contracts.

"The contract enhancement for the SmartSite(R) needle-free valve system supports Premier's objective in providing value to our members and owners in the areas of safety, quality and cost," said Peter Malaspina, vice president, Premier. "Our members requested choice when it comes to ideal pricing and access to products that improve patient care and worker safety. We believe this contract offers both."

According to Jake St. Philip, North American VP and general manager for ALARIS Medical Systems, "Premier's adoption of this technology demonstrates its commitment to its membership and manufacturing partners to accelerate advanced technology and provide a contract portfolio that offers flexibility, value, innovation and safety."

"Adding the SmartSite(R) needle-free valve system to our existing Premier agreement further validates the industry's acceptance of this innovative technology," said Richard Giometti, division vice president, National Accounts, for ALARIS Medical Systems. "Premier responded to their members' needs by contracting for a product that demonstrates a commitment to patient and caregiver safety."

About SmartSite(R)

The SmartSite(R) system is capable of meeting a complete spectrum of needle-free IV therapy applications. The system's ease of use and capless design set new standards for convenience, cost-control, and needle-free compliance. In addition, the SmartSite(R) system is latex-free, reducing the likelihood of allergic reactions. From a full line of administration sets that are compatible with ALARIS Medical Systems' infusion pumps, to gravity sets, extension sets and components, the SmartSite(R) system provides a complete needle-free system.

The Federal "Needle Stick Safety and Prevention Act," signed on Nov. 6, 2000, is intended to increase protection for healthcare workers against needle stick injuries by requiring that healthcare facilities implement the use of "safer medical devices" to minimize accidental needle sticks. While not dictating the adoption of any specific device, the legislation requires employers to evaluate the effectiveness of available technology. It also requires that frontline workers be involved in the evaluation, selection and implementation of new safety devices. The SmartSite(R) needle-free system has a proven track record among clinicians and healthcare workers, with over 1,330 acute care hospitals nationwide utilizing the SmartSite(R) technology.

About Premier Inc.

Premier Inc. is the parent company of a leading strategic alliance in U.S. healthcare. Premier is entirely owned by more than 200 of the nation's leading hospital and healthcare systems. Aggregately, these systems operate or are affiliated with more than 1,800 hospital facilities in 50 states and hundreds of other care sites. The Premier family of companies provides an array of resources supporting health services delivery. Among these resources are comprehensive supply chain management services, including group purchasing for more than $12 billion annually in supplies and equipment, with e-commerce enablement by medibuy.com. Other resources offered by Premier are insurance programs, performance improvement services of many kinds including healthcare informatics, clinical technology services, and physician practice management services. Premier is headquartered in San Diego, with other major facilities in Chicago and Charlotte, N.C. Advocacy and policy offices are located in Washington, D.C. For more information, visit www.premierinc.com.

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 SmartSite(R) needle-free valve system has won the following awards: Medical Design Excellence Award (1998); North Carolina Governor's New Product Award (1999); and National Society of Professional Engineers New Product Award (2000). 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, which are based largely upon ALARIS Medical Inc.'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 and government regulation. 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, 1999.