Broadlane and Global Healthcare Exchange Sign Agreement to Connect Electronic Healthcare Trading Exchanges.

Business Editors/Health & Medical Writers

Alliance Will Expand Ability of Participating Healthcare Providers and Suppliers to Conduct Electronic Business Transactions and Increase

Supply Chain Efficiencies

Broadlane Inc. and Global Healthcare Exchange, LLC (GHX) have signed a three-year agreement to connect their respective Internet-based trading exchanges, creating a more comprehensive supply chain solution for the healthcare industry.

By building an integration link between their two exchanges, GHX and Broadlane will enable their respective suppliers and hospitals to more easily conduct business with one another, while minimizing the costs of connectivity and information exchange.

A leading provider of supply cost management services to the healthcare industry, Broadlane operates BroadLink(TM), a private exchange consisting of more than 290 healthcare providers. GHX operates an open and neutral trading exchange with hundreds of members across the entire supply chain, from manufacturers and distributors to group purchasing organizations, hospitals and integrated delivery networks (IDNs).

Integrated GHX supplier members will begin conducting business with Broadlane's customers during the second half of 2002. These suppliers will be able to conduct business with hundreds of Broadlane hospitals through a single point of connectivity with GHX. Integration with these GHX supplier customers is expected to increase BroadLink's transaction volume by approximately 20 percent and add $300 million annually in new supply spend moving through Broadlane's exchange.

"This agreement will allow Broadlane's customers to access important new suppliers through our integration with GHX," said Trevor Fetter, chairman and chief executive officer of Broadlane. "Combined with GHX's proven track record in supplier integration, this alliance will make it easier for additional suppliers to conduct business with Broadlane hospitals. For the majority of our customers, we will now be able to process approximately 60 percent of the annual value of their supply purchases electronically, which we believe exceeds by a wide margin the coverage offered by any of the other provider-centric e-commerce exchanges in healthcare. The cooperation between Broadlane and GHX will enable both companies to deliver greater value to our respective customers more quickly and at a lower total cost."

GHX Chief Executive Officer Mike Mahoney says: "We're very pleased to be working with Broadlane, which has already demonstrated its ability to deliver effective supply chain solutions to its customers. Our alliance with Broadlane will deliver immediate value to all participants. First, providers connected to BroadLink and GHX-integrated suppliers will be able to conduct business with one another through a single point of connectivity on each end. Further, GHX supplier members can participate without paying any additional fees. Both providers and suppliers will have access to the GHX AllSource(TM) catalog which helps ensure order accuracy, creating greater efficiencies for all participants."

The alliance gives Broadlane access to the GHX AllSource(TM) industry catalog that contains normalized product information owned and verified by the suppliers. In addition, GHX will provide Broadlane with regular catalog updates.

Broadlane and GHX will each independently market this connected solution to existing and prospective customers. No equity was issued by either company in connection with the agreement. Other terms of the agreement were not disclosed.

About Broadlane

Through an extensive suite of services, Broadlane delivers total cost management services to the healthcare industry. Those services include contracting, clinical services, and technology and data management. Among the companies that focus on cost management within the healthcare supply chain, only Broadlane offers this total cost management approach.

Broadlane customers include leading healthcare providers such as Kaiser Permanente, Tenet Healthcare Corporation, Universal Health Services, Continuum Health Partners, The Health Alliance of Greater Cincinnati, Kindred Healthcare, Community Health Systems, U.S. Oncology, Alliance Imaging Inc., and others. Broadlane counts among its customers more than 450 acute care hospitals and more than 1,400 sub-acute care facilities. Broadlane has offices in San Francisco and Oakland, Calif.; Cincinnati; Dallas; and New York City. For more information, visit www.broadlane.com.

About Global Healthcare Exchange

Global Healthcare Exchange, LLC (GHX) is an Internet-based trading exchange from which hospitals can purchase products more easily, quickly and accurately than ever before. GHX has built a normalized, verified industry-standard catalog, which will take advantage of deep connectivity between GHX, hospitals, and suppliers to improve efficiencies and add value throughout the healthcare supply chain. The privately held company was founded in March 2000 and its membership now includes hundreds of members, representing hospitals, integrated delivery networks (IDNs), manufacturers, GPOs and distributors. Equity owners of GHX include Johnson & Johnson; GE Medical Systems; Baxter International, Inc.; Abbott Laboratories; Medtronic, Inc.; AmerisourceBergen Corporation; B. Braun Medical Inc.; Becton, Dickinson & Co.; Boston Scientific Corporation; Cardinal Health, Inc.; C.R. Bard, Inc.; Fisher Scientific International Inc.; Guidant Corporation; McKesson Corporation; Siemens Medical Solutions and Tyco International, Ltd. For more information, visit www.ghx.com.