Company Profile

ALARIS Medical, Inc. (AMI) is a provider of infusion systems and related technologies to the U.S. hospital market, with the largest installed base of pump delivery lines (channels), and is also a leader in the international infusion systems market. The company reported first quarter 2002 sales of $104,400,000 with net income of $854,000.

The company's infusion systems, which are used to deliver one or more fluids, primarily pharmaceuticals or nutritionals to patients, consist of single and multi-channel infusion pumps and dedicated and non-dedicated disposable administration sets. The company believes it has the largest installed base of large volume pump delivery lines in the U.S. hospital market, representing about 31% of such installed lines. Based on its installed base of infusion pumps, AMI holds the first or second market position in in Belgium, France, Italy, the Netherlands, Norway, Spain, Sweden, the United Kingdom, Australia, Canada, New Zealand and South Africa.

In addition, it is a leading provider of patient monitoring products that measure and monitor temperature, with a substantial installed base of hospital thermometry systems in the U.S. AMI makes and markets both single and multi-channel infusion pumps and disposable administration sets. The company's infusion pumps include large volume infusion pumps such as its Gemini series, Signature Edition Family, MedSystem III, and syringe infusion pumps, sold primarily in Western Europe; and disposable pumps such as the ReadyMED for use in the alternate-site setting. AMI's large volume infusion pumps require the use of higher margin dedicated disposable administration sets.

The company also sells non-dedicated disposable administration sets, including several needleless devices, for use in many infusion applications. The company also makes and markets hospital thermometry instruments and related disposable probe covers, and stand-alone, non-invasive, multi-parameter instruments that measureand monitor a combination of temperature, pulse and blood pressure and other vital signs.

In December 2001, AMI announced the full North American market release of the first modular intravenous infusion platform with proprietary medication error-prevention software. The MEDLEY Medication Safety system integrates infusion, patient monitoring, and clinical best practice guidelines to achieve optimal clinical outcomes. The MEDLEY system is designed to optimize hospital asset utilization, standardize device programming, and, via the Guardrails Safety Software, provide passive protection from some of the most serious and costly medication errors, those involving IV medications.