Alliance Medical Selected by Allina Hospitals & Clinics for Medical Device Reprocessing; Partnership Will Save Non-Profit Healthcare System Millions in Supply Costs.

PHOENIX -- Alliance Medical Corporation (Alliance), a leading reprocessor of single-use devices (SUDs), announced today it signed a two-year agreement with Allina Hospitals & Clinics (Allina). The partnership will enable Minneapolis-based Allina to reduce their supply costs by at least $4.6 million over the full term of the agreement. As Minnesota's largest, non-profit network of hospitals, clinics and other health care services, Allina provides care throughout the state as well as to patients in Wisconsin.

"Allina Hospitals & Clinics carefully selected Alliance Medical as a partner for reprocessing as a result of their demonstrated ability to provide quality medical devices and reduce supply-chain expenses," said Richard Pentigill, president and CEO of Allina Hospitals & Clinics. "Alliance's ability to deliver greater savings and quality through exceptional service is an advantage for our hospitals and ultimately our patients."

Reprocessing is a highly regulated industry in which SUDs are cleaned, checked to verify functional integrity, and sterilized according to all of the regulatory requirements currently applicable to original equipment manufacturers (OEMs). Alliance has safely reprocessed over 12 million SUDs translating to savings of over $150 million for hospitals and consumers across the country. The savings healthcare 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. Reprocessing, an effective form of recycling, also helps to reduce unnecessary waste. Reprocessing by Alliance has eliminated at least hundreds of tons of unnecessary waste from U.S. landfills.

"Allina Hospitals & Clinics' agreement with Alliance further demonstrates our position as the leader in medical device reprocessing," said Arthur Goodrich, vice president marketing and business development of Alliance. "Alliance is dedicated to providing Allina with reprocessed devices that are as safe and effective as original devices, while ensuring significant cost savings."

About Alliance Medical Corporation

Alliance Medical Corporation is a leading reprocessor of specific single-use medical devices (SUDs). Alliance has safely reprocessed more than ten 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(TM) (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 leading national group purchasing organizations, alliances and supply chain service firms, including VHA, Broadlane and University Health System Consortium (UHC), as well as a number of nationally recognized hospital integrated delivery networks including Banner Health and Henry Ford Health System that collectively represent more than 4,000 healthcare facilities. For more information about Alliance Medical Corporation, visit www.alliance-medical.com; or call 888-888-3433.

About Allina Hospitals & Clinics

Minneapolis-based Allina Hospitals & Clinics is a not-for-profit, health care organization serving communities throughout Minnesota and Western Wisconsin. Allina owns and operates 11 hospitals, 65 clinics, hospice services, pharmacies, home oxygen and medical equipment, and emergency medical transportation services. Allina Hospitals & Clinics can be found at http://allina.com and the latest health information is at http:medformation.com.