Catholic Healthcare West And St. Jude Medical Announce Agreement For Cardiac Rhythm Management Portfolio.

Business Editors & Health/Medical Writers

ST. PAUL, Minn.--(BUSINESS WIRE)--Jan. 7, 2002

St. Jude Medical, Inc. (NYSE:STJ) and Catholic Healthcare West (CHW) today announced a comprehensive purchasing agreement for St. Jude Medical's Cardiac Rhythm Management products tailored for Catholic Healthcare West's member hospitals. With 41 hospitals in California, Arizona and Nevada, Catholic Healthcare West is the largest Catholic healthcare system and one of the largest integrated hospital delivery networks in the U.S. with direct annual non-capital purchases of $600 million, plus $140 million in affiliate purchasing volume. The agreement became effective on January 3, 2002.

The agreement covers a broad range of cardiovascular products and technologies from St. Jude Medical, including pacemakers and implantable cardioverter defibrillators (ICDs). The agreement provides access to all existing and future bradycardia and tachycardia technologies from St. Jude Medical. The agreement permits the highest levels of technology and physician choice for CHW facilities, while providing long-term savings and cost management across the system.

"We are very pleased that Catholic Healthcare West has selected St. Jude Medical as a preferred vendor for our cardiac rhythm management products," said Michael Rousseau, President of the St. Jude Medical U.S. Sales Division. "We intend to expand our relationship with CHW and its member hospitals to include other St. Jude Medical product lines by providing technology leadership, product choice for physicians and their patients, and cost effective products and services that meet the demands of today's healthcare environment."

"We expect to realize significant cost savings and operational efficiencies through our partnership with St. Jude Medical," said Keith Callahan, Sr. Vice President of Catholic Healthcare West. "This agreement is consistent with our approach to deliver the highest quality products for our patients and physicians coupled with our system-wide reorganization and financial improvement goals."

St. Jude Medical, Inc. (www.sjm.com) is dedicated to the design, manufacture and distribution of medical devices of the highest quality, offering physicians, patients and payers unmatched clinical performance and demonstrated economic value.

Catholic Healthcare West is the largest Catholic health care system based in the Western United States with 41 hospitals in California, Arizona and Nevada. CHW is sponsored by nine congregations of women religious works to further the healing ministry of Jesus by delivering compassionate, high-quality, affordable health services; providing direct services to the poor and disenfranchised, and advocating on their behalf; and partnering with others to improve the quality of life in the communities we serve. CHW annually cares for more than 300,000 patients; provides more than $400 million in community benefits and care for the poor; and employs approximately 33,000 people. For more information please visit the CHW Web site at, www.chwHEALTH.com.