Alaris Medical Raises Approximately $109 Million in Private Placement Offering.

SAN DIEGO--(BUSINESS WIRE)--July 29, 1998--ALARIS Medical Inc. (Nasdaq:ALRS), a San Diego-based leading provider of intravenous infusion therapy systems, patient monitoring and related disposables, Wednesday announced that it has completed the sale of $109.9 million of 11 1/8 percent Senior Discount Notes due 2008 through a private placement offering.

The offering, which resulted in proceeds to the company of $106.3 million, was coordinated through Bear, Stearns & Co. Inc., BT Alex Brown Inc. and Donaldson, Lufkin & Jenrette Securities Corp.

A portion of the proceeds of the offering was used to fund the acquisition of privately owned Instromedix Inc., an Oregon corporation, and related transaction expenses, and to repay certain indebtedness. The balance of the proceeds will be used for general corporate purposes, including possible future acquisitions.

Instromedix, founded in 1969, produces technologically advanced products that primarily address cardiac disease diagnosis, monitoring and management.

Instromedix has developed, among other products, the LifeSigns System, a telemedicine product which allows clinical professionals to monitor a patient's cardiac events from a remote location and transmit the recorded event, via a standard telephone line, to a central location.

Virtually all of Instromedix's revenues are derived from the sale of products that are used in the alternate-site setting, primarily at the patient's home or at the physician's office.

William J. Mercer, president and chief executive officer, said, "The company is appreciative of the strong support from our bankers and the capital markets in enabling these transactions to be completed in a timely and cost-effective manner.

"Instromedix brings us leading-edge communications capabilities for our infusion therapy business in the alternate-site setting, as well as further penetration of patient monitoring in the cardiovascular disease market segment."

ALARIS Medical, through its operating company, ALARIS Medical Systems Inc., is known for its IMED and IVAC brand names of intravenous infusion therapy 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.

The company's products are distributed to more than 120 countries worldwide. In addition to its San Diego world headquarters and manufacturing facility, the company operates manufacturing facilities in Creedmoor, N.C.; Hillsboro, Ore.; Basingstoke, Hampshire, U.K.; and Tijuana, Mexico. Additional information about the company can be found at www.alarismed.com.

This news release contains forward-looking statements 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 including its Form 10-K for the year ended Dec. 31, 1997.

    CONTACT: Alaris Medical Inc., San Diego
              Barbara Burkett, 619/458-7038
                          or
              Financial Relations Board, Los Angeles
              310/442-0599
              Stacy Roughan (General Information)
              Marjorie Ornston (Media Contact)
                          or
              Ketchum Public Relations, Los Angeles
              Kali Coffman, 310/444-1394 (Trade Contact)