Span-America Medical Systems, Inc. Signs Agreement for Secure I.V.(R) With Novation.GREENVILLE, S.C. -- Span-America Medical Systems, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :SPAN) today announced that it signed an agreement to offer Secure I.V. to Novation The substitution of a new contract for an old one. The new agreement extinguishes the rights and obligations that were in effect under the old agreement. A novation ordinarily arises when a new individual assumes an obligation to pay that was incurred by the original party , the industry's leading health care contracting services company. "The agreement with Novation will increase substantially the visibility of Secure I.V. in our target markets," stated Jim Ferguson, president and chief executive officer of Span-America Medical Systems. "Novation recognized the potential of Secure I.V. because the product provides added protection against bloodborne pathogens." The Novation contract has an initial three-year term and a renewal option for two years. Under the terms of the contract, Novation will offer Secure I.V. to its network of nearly 2,500 VHA VHA Veterans Health Administration VHA Variable Housing Allowance VHA Villages Homeowners Association VHA Voluntary Hospitals Association VHA Virtual Home Agent VHA Very High Altitude VHA Vapor Hazard Area VHA Vermont Holstein-Friesian Association and UHC UHC UnitedHealthcare UHC United Health Care UHC University Hospitals of Cleveland UHC United Hitech Corporation UHC Udvar-Hazy Center (National Air and Space Museum) UHC University Health/System Consortium UHC Unburned Hydrocarbons members, including e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. distribution through its Marketplace@Novation(TM) web site. The agreement does not include any commitment for Novation, any VHA or UHC member or any other party to purchase any quantities of Secure I.V. products; however, the agreement does set pre-established prices for Secure I.V. products purchased by VHA and UHC members. Novation plans to make a separate announcement about this agreement around August 15, 2006. Secure I.V. offers the new technology of a built-in occlusion occlusion /oc·clu·sion/ (o-kloo´zhun) 1. obstruction. 2. the trapping of a liquid or gas within cavities in a solid or on its surface. 3. valve, which reduces or eliminates exposure to blood while starting an I.V. The patented design is intended to give health care workers maximum protection against bloodborne pathogen Pathogen Any agent capable of causing disease. The term pathogen is usually restricted to living agents, which include viruses, rickettsia, bacteria, fungi, yeasts, protozoa, helminths, and certain insect larval stages. exposure and remove a hazard from the workplace. "To our knowledge the Secure I.V. is the only product of its kind on the market to offer both needle-stick protection and passive bloodborne pathogen protection in a single device," continued Mr. Ferguson. "We believe the Novation agreement validates the unique advantages of Secure I.V. compared with conventional catheters. Note: The information set forth above and the following information about Novation have been confirmed by Novation to the Company; however, the Company makes no warranty regarding the accuracy of this information. About Novation Based in Irving, Texas Irving (pronounced 'er-ving') is a city located in the U.S. state of Texas within Dallas County. According to the 2000 U.S. Census, the city population was 191,615; the 2006 estimate was 201,927 according to the North Central Texas Council of Governments, and 196,084 according to , Novation is the leading health care contracting services company, delivering unmatched savings and value to nearly 2,500 members of VHA Inc. and the University HealthSystem Consortium (UHC), two national health care alliances. Through its public competitive bid process, Novation develops and manages contracts with more than 700 suppliers, both large and small. By combining scale and agility with clinical knowledge and product expertise, Novation offers the most extensive range of innovative contracting services, including: contract development, contract and supplier management, custom contracting, enhanced savings programs, online contract management and analytical analytical, analytic pertaining to or emanating from analysis. analytical control control of confounding by analysis of the results of a trial or test. tools, order management and online supplier connectivity. VHA and UHC members used Novation's contracts to purchase more than $25 billion in supplies in 2005. About Span-America Medical Systems, Inc. Span-America manufactures and markets a comprehensive selection of pressure management products for the medical market, including Geo-Matt(R), PressureGuard(R), Geo-Mattress(R), Span+Aids(R), Isch-Dish(R), and Selan(R) products. The Company also supplies custom foam and packaging products to the consumer and industrial markets. Span-America's stock is traded on The NASDAQ Global Market under the symbol "SPAN." Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Span-America has made forward-looking statements in this release, regarding management's expectations about the potential positive impact of the Novation agreement on Secure I.V. sales and market visibility. Management wishes to caution the reader that these statements are only predictions. The actual impact of the Novation agreement on the Company's safety catheter catheter /cath·e·ter/ (kath´e-ter) 1. a tubular, flexible surgical instrument that is inserted into a cavity of the body to withdraw or introduce fluid. 2. urethral c. business is uncertain because (a) Secure I.V. is a new product and does not yet have a successful track record in the market, (b) the agreement does not guarantee any sales of Secure I.V. and (c) there can be no assurance that Novation members will select Secure I.V. over competing products also offered by Novation. |
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