Nellcor and Alliance Medical Announce First-of-its-Kind Co-Marketing

PHOENIX -- Nellcor and Alliance Medical Corporation announced today an innovative co-marketing agreement designed to enhance the savings opportunities each company's hospital customers receive under their respective remanufacturing and reprocessing programs. The collaborative "Reprocessing Plus" program will promote Nellcor's pulse oximetry sensor remanufacturing to Alliance customers who currently do not participate in Nellcor's program.

"Historically, high validation costs have prevented Alliance from adding low-cost devices like pulse oximetry sensors to our approved reprocessing list," says Alliance CEO, Rick Ferreira. "With the additional requirements mandated by the Medical Device User Fee and Modernization Act of 2002 (MDUFMA), these costs will increase even more. Reprocessing Plus provides the best solution for our customers who currently have their sensors reprocessed by another vendor. Now these customers can benefit from Nellcor's proprietary remanufacturing process that ensures total functionality and precise, system-level calibration/saturation accuracy that other reprocessors simply cannot achieve. By joining forces, Nellcor and Alliance can achieve our mutual objective of helping our customers maintain quality patient care while enhancing their efficiency."

According to Dan Roth, director of marketing, Nellcor Oximetry, "Cost-conscious customers will benefit from Nellcor's high-quality, market-leading remanufactured pulse oximetry sensors, combined with Alliance Medical's dedication to placing patient safety first in the cost-control equation. Alliance's commitment to quality, service and cost-savings makes them the ideal partner. As the original equipment manufacturer, only Nellcor can offer a remanufactured Nellcor oximetry sensor."

Under the agreement, Alliance will integrate the collections for Nellcor's sensor remanufacturing program into its AIM (Assessment, Implementation and Management) savings maximization program. Alliance's clinical area service representatives will assist with the pick-up of Nellcor sensor recycling collection systems with their existing programs at specific facilities. Alliance will be able to fill a gap in its service offerings by providing Nellcor's remanufactured sensor program to customers who require this

service.

Nellcor is dedicated to developing innovative, clinically relevant medical products with an emphasis on noninvasive patient safety monitoring and respiratory care. Nellcor is the world's foremost supplier of pulse oximetry, fetal pulse oximetry and airway management products. The company also offers a wide range of products for measuring and regulating patient body temperature.

Alliance Medical Corporation is a leading reprocessor of specific single-use medical devices (SUDs). Alliance has safely reprocessed more than 7 million SUDs, saving hospitals and surgery centers in excess of $75 million. The company's services focus on reducing supply costs of hospitals and surgery centers suffering from shrinking reimbursements and increasing costs.

Alliance's unique AIM (Assessment, Implementation and Management) program uses clinical implementation teams to provide facilities with the tools needed to maximize their savings from reprocessing. Alliance has agreements with leading national group purchasing organizations, alliances and supply chain service firms, including VHA, Amerinet, Broadlane and University HealthSystem Consortium (UHC), as well as a number of nationally recognized hospital integrated delivery networks including Banner Health and Henry Ford Health System that collectively represent more than 4,000

healthcare facilities.