Haemonetics Technology Enables New Strategic Frozen Blood Reserve Initiatives; U. S. Military Takes the Lead in Adopting Latest Technology to Ensure Available Blood Supply.

Business Editors & Health/Medical Writers

BRAINTREE, Mass--(BUSINESS WIRE)--Oct. 5, 2001

Haemonetics Corporation (NYSE: HAE) announced today that the U.S. Military has accelerated deployment of a new frozen blood storage program utilizing Haemonetics technology. This initiative was sped up as a result of the events of September 11, and will use the Company's state-of-the-art systems to freeze red blood cells for up to 10 years and when needed, thaw those cells. Haemonetics technology automates the blood freezing process in a closed system, which allows for 14-day storage of thawed red blood cells. Previous technologies required thawed blood to be used in 24 hours post thaw or be discarded.

The U.S. Military's frozen blood program dates from the 1970s to assist in combat readiness. However, the 24-hour outdate of thawed cells remained a logistical problem. Haemonetics worked with the Military to develop a new generation of blood freezing and thawing technology with a longer shelf life. The clinical studies for Haemonetics' newest device, the ACP(TM) 215 automated cell processing system, were performed almost exclusively at military hospitals. The ACP 215 system was given 510(k) clearance by the U. S. Food and Drug Administration ("FDA") in May, 2001. Adoption of the technology by numerous branches of the military originally scheduled for roll out over the next several years has now been accelerated. Civilian applications of this technology are also currently being evaluated for domestic frozen blood reserves to address periodic inventory level imbalances. For example, the current high blood inventory levels created by the flood of donations from Americans since September 11 could be effectively leveraged through freezing programs.

"To accommodate the more urgent demand for our ACP 215 technology for the U.S. Military's new frozen blood initiative, Haemonetics quickly refocused our corporate and manufacturing resources," James L. Peterson, Haemonetics' president and CEO stated. "Our employees and suppliers pulled together to assure adequate product supply to meet the new schedule, and our field staff overcame many challenges to prepare materials and to be at customer sites when they called."

Blood stored in a liquid state must be used within 42 days. Blood that is frozen can be stored for up to 10 years prior to use. The concept of a strategic frozen blood reserve is to freeze precious units of blood, collected at times of surplus, to keep in reserve for use during a time of blood shortage. In recent years the US has experienced significant localized blood shortages. Shortages occur due to unanticipated demand from particular patients, accidents, natural disasters and other events that disrupt supply and distribution of blood. Shortages also occur during times when an adequate number of donors are not able to donate due to flu season, weather and natural disasters, holiday and vacation schedules.

The Company anticipates that other customers will be interested in exploring the use of frozen blood as an inventory management tool. At present, the frozen blood market is small, representing a small percentage of blood transfused in the US. However, freezing blood is the first application of Haemonetics' new generation of laboratory processing equipment and disposables. The Company anticipates that within the next few years this technology platform will also be used for pathogen inactivation of red blood cells in collaboration with V.I. Technologies, Inc. Pathogen inactivation is a technique that has applicability for all red cell units transfused to patients.

Haemonetics will hold its annual securities analyst conference in Boston on December 13, 2001.

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. To learn more about Haemonetics' products and markets, visit the Company's web site at http://www.haemonetics.com.

This release contains forward looking statements that involve risks and uncertainties, including technological advances in the medical field, product demand, market acceptance, regulatory uncertainties, the effect of economic conditions, the impact of competitive products and pricing, blood product reimbursement policies and practices, foreign currency exchange rates and other risks detailed in the Company's filings with the Securities and Exchange Commission. The forward looking statements are based on estimates and assumptions made by management of the Company and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results and experience could differ materially from the forward looking statements.