IRIS Receives Order from U.S. Department of Veterans Affairs for Instrumentation in 17 Facilities; South Central VA Healthcare Network Standardizes to Company's Urinalysis Technology.

CHATSWORTH, Calif. -- IRIS International, Inc. (NASDAQ: IRIS), a manufacturer and marketer of automated IVD urinalysis systems and medical devices used in hospitals and reference clinical laboratories worldwide, today announced that it has entered into a five-year purchasing agreement with the Veterans Integrated Services Network VISN 16 region of the U.S. Department of Veterans Affairs (VA), for an order of 23 fully automated and semi-automated urine analyzers for the agency's healthcare centers.

"This order represents the third VISN standardization to IRIS products following previous agreements with VISN 1 and VISN 4," stated Cesar Garcia, President and Chief Executive Officer of IRIS International. "The standardization of this additional large VISN further increases our already strong presence in the VA medical system that consists of 21 VISN regions representing 158 hospitals.

"In addition, an agreement of this size helps offset the anticipated seasonal trend of lower international instrument sales the Company traditionally experiences in the third quarter."

The order from the South Central Healthcare Network VISN 16 consists of six iQ(R)200 Systems, the Company's flagship product platform, plus nine standalone AX-4280 automated urine chemistry analyzers and eight AJ-4270 semi-automated urine chemistry analyzers for nine VA medical centers and eight outpatient clinics serving veterans in Oklahoma, Arkansas, Louisiana, Mississippi and parts of Texas, Missouri, Alabama and Florida. As a result of the recent hurricanes in this region, IRIS has committed to the expedited installation and commissioning of these sites.

THE COMPANY

IRIS International, Inc. (www.proiris.com) is a leader in automated urinalysis technology with systems in major medical institutions throughout the world. The Company's newest generation iQ(R)200 Automated Urine Microscopy Analyzer, utilizing image flow cytometry, patented Automated Intelligent Microscopy (AIM) technology and neural network-based particle recognition, achieves a significant reduction in the cost and time-consuming steps involved in manual microscopic analysis. The Company's StatSpin(R) subsidiary, based in Norwood, Mass., manufactures innovative centrifuges and blood analysis products. Advanced Digital Imaging Research, LLC (ADIR), based near Houston, Texas, is the Company's imaging research and development subsidiary.

SAFE HARBOR PROVISION

This news release contains forward-looking statements made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, the Company's views on future commercial revenues, market growth, capital requirements, new product introductions, and are generally identified by phrases such as "thinks," "anticipates," "believes," "estimates," "expects," "intends," "plans," and similar words. Forward-looking statements are not guarantees of future performance and are inherently subject to uncertainties and other factors which could cause actual results to differ materially from the forward-looking statement. These statements are based upon, among other things, assumptions made by, and information currently available to, management, including management's own knowledge and assessment of the Company's industry, competition and capital requirements. Other factors and uncertainties that could affect the Company's forward-looking statements include, among other things, the following: the acceptance by customers of our new iQ(R)200 product platform, our substantial expansion of international sales and our reliance on key suppliers, the potential need for changes in long-term strategy in response to future developments; future advances in diagnostic testing methods and procedures, as well as potential changes in government regulations and healthcare policies, both of which could adversely affect the economics of the diagnostic testing procedures automated by the Company's products; rapid technological change in the microelectronics and software industries; and increasing competition from imaging and non-imaging based in-vitro diagnostic products. The Company refers interested persons to its most recent Annual Report on Form 10-K and its other SEC filings for a description of additional uncertainties and factors that may affect forward-looking statements. The Company assumes no duty to update its forward-looking statements.