Blood Systems Added to Haemonetics' Top Five Customer List.

BRAINTREE, Mass.--(BW HealthWire)--Dec. 21, 1998--Haemonetics Corporation (NYSE:HAE) announced today that Blood Systems, Inc. (Scottsdale, AZ) has become one of its largest customers of disposable products used in the automated (apheresis) collection of blood components from healthy blood donors. Blood Systems, the nation's second largest blood system, collects 8% of the blood components intended for transfusion in the United States.

Blood Systems has assumed management of Arizona Blood Institute (Tucson, AZ) and will assume management of Texas Blood Services (operating in Lubbock, Midland, and Odessa, TX) on December 26, 1998. The blood banks will operate as part of United Blood Services, a non-profit network of regional blood centers operated by Blood Systems. Simultaneously, United Blood Services and Haemonetics concluded a long term supply agreement whereby Blood Systems will purchase Haemonetics disposables for use at these blood center locations.

These transactions increase to three the number of blood banks purchased by Blood Systems from Haemonetics. In October, 1998, Blood Systems acquired the assets of Tri-Counties Blood Bank, located in Central California.

The transactions result from Haemonetics' decision to divest its blood bank services business. Haemonetics' decision to divest returns the company to its core competency as a medical device manufacturer and returns the blood centers to the non-profit organizations best suited to meet the needs of donors and patients. Every blood bank sales transaction included a long term supply agreement in which the purchaser agreed to purchase Haemonetics disposables for use at the newly acquired blood bank. Two blood banks remain to be sold by Haemonetics.

James L. Peterson, Haemonetics' President and CEO, confirmed that, "In keeping with our commitment to shareholders, I expect the Company to be fully divested of this division by the end of FY'99 (March, 1999)."

"Blood Systems collects over 750,000 units of blood each year. We are delighted that such an important service provider has chosen to strengthen its partnership with Haemonetics. We look forward to working with Blood Systems as it continues to introduce automated technology for the collection of red cells," Mr. Peterson said.

J. Daniel Connor, Blood Systems' President and CEO, said, "We're pleased to have concluded these negotiations with Haemonetics. We're eager to explore the benefits Haemonetics' automated technology can bring to our organization."

Haemonetics is the only medical device manufacturer with FDA approval to collect two units of red cells from one donation, and has embarked on a worldwide mission to automate the collection of all blood components, increasing the availability and safety of the world's blood supply.

Haemonetics is a global company engaged in the design, manufacture, and worldwide marketing of automated blood processing systems. These systems address important medical markets: surgical blood salvage, blood component collections, and plasma collections. Over sixty percent of the Company's business is outside the United States. To learn more about Haemonetics' products and markets, visit the Company's web site at http://www.haemonetics.com.