Alliance Medical Renews Multi-Year Agreement With VHA To Provide Reprocessing Services.

Business Editors/Health/Medical Writers

PHOENIX--(BUSINESS WIRE)--April 20, 2004

Alliance Medical Corporation (Alliance), a leading reprocessor of single-use medical devices (SUDs), today announced that VHA Inc., a cooperative of community-owned health care organizations, has renewed a three-year contract with Alliance. Alliance will be one of only two suppliers to offer medical device reprocessing services to VHA's nationwide network of hospitals through VHA's national agreements. The agreements enable members to reduce supply-chain costs and unnecessary waste, while continuing to provide a high standard of patient care.

VHA's contract renewal with Alliance extends an agreement signed in August 2001. Currently, more than 210 VHA members are Alliance customers. In the past three years, VHA hospitals that reprocessed with Alliance achieved cost savings of more than $20 million. Since April 2002, VHA member hospitals have saved an estimated $25 million through VHA's medical device reprocessing agreements.

"VHA conducted a thorough and rigorous selection process to make sure that our members continue to have access to the best suppliers," said Amy Anthony, VHA's vice president for supplier services. "We renewed our contract with Alliance because Alliance is an industry leader with a proven reprocessing program. This ensures that the reprocessed medical devices are fully sterile and functional for use and enables our members to reduce their supply costs."

Having safely reprocessed more than 12 million SUDs, Alliance is also one of the industry's most trusted device reprocessing companies, providing hands-on support for customers. Alliance employs clinically trained and experienced service technicians and account executives who utilize its clinically focused, three-phased client support program, Assessment, Implementation and Management (AIM), to set up and manage the most efficient and effective SUD reprocessing program. The savings health care facilities achieve as a result can be used for vital patient services, new medical technology and nursing salaries, all of which lead to improved patient care.

"The extension of Alliance's agreement with VHA underscores our position as the leader in the medical device reprocessing industry," said Rick Ferreira, president of Alliance Medical Corporation. "Alliance is committed to providing an invaluable reprocessing solution for VHA's member hospitals that will help them achieve significant supply-chain cost savings."

About Alliance Medical

Alliance Medical Corporation is a leading reprocessor of specific single-use medical devices (SUDs). Alliance has safely reprocessed more than 12 million SUDs, saving hospitals and surgery centers in excess of $150 million. The company's services focus on reducing supply costs of hospitals and surgery centers suffering from shrinking reimbursements and increasing costs. Alliance's unique AIM (Assessment, Implementation and Management) program uses clinical implementation teams to provide facilities with the tools needed to maximize their savings from reprocessing. Alliance has agreements with many of the country's preeminent healthcare institutions, including over half of the "Honor Roll" facilities as ranked by U.S. News & World Report. Additionally, Alliance has agreements with leading national group purchasing organizations, alliances and supply chain service firms, including VHA, Broadlane and University HealthSystem Consortium (UHC), as well as a number of nationally recognized hospital integrated delivery networks, including Mayo Clinic, Banner Health, Henry Ford Health System, Shriners Hospitals for Children and University of Pittsburgh Medical Center. For more information about Alliance Medical Corporation, visit www.alliance-medical.com; or call 888-888-3433.