Healthcare Industry News:   Novation 

Devices Group Purchasing

 News Release - January 12, 2006

More Than 900 Hospitals Sign with U.S. Surgical Under Novation Supply Agreements

First eight months of agreement show outstanding results

NORWALK, Conn., Jan. 12 (HSMN NewsFeed) -- U.S. Surgical, a business unit of Tyco Healthcare, today announced that more than 900 of Novation's VHA and University HealthSystem Consortium (UHC) hospitals have signed agreements for U.S. Surgical's wound closure, surgical stapling and endomechanical products during the first eight months of the new agreement with Novation. U.S. Surgical was the only supplier selected to participate in all eight wound closure, surgical stapling and endomechanical categories on the multi-year Novation agreement.

"This new agreement structure has given our surgeons full access to the products they trust, coupled with the assurance of being able to try new technologies as they become available in the future," said Dr. Roy Smythe, Department of Surgery Chairman at Scott & White Clinic and Hospital in Temple, Texas. "Furthermore, U.S. Surgical's on-site training and continuous communication helped to support the clinical value they bring us. Our surgeons have been particularly pleased with the opportunity to use Autosuture and Syneture products under the new Novation agreement."

In contracting with these new Novation customers, U.S. Surgical draws upon more than 40 years of experience to implement a tailored and smooth transition process for all facility stakeholders -- from surgeons to nurses to administrators. Since its inception, U.S. Surgical has partnered with leading educational institutions to train more than 250,000 surgeons through its accredited programs. The agreements allow U.S. Surgical to provide clinical value to small, medium and large health systems, including Scott & White Clinic and Hospital.

"The response to the agreement has been gratifying and, as a result, we have expanded our sales force by 25% to support our new customers," said Mark Roby, Vice President of Marketing, U.S. Surgical. "And this is only the beginning. With more than 1,000 additional inquiries received from other VHA and UHC facilities, we expect to add a considerable number of new customers by April 1, 2006."

Under these awards, the Autosuture(TM) and Syneture(TM) divisions of U.S. Surgical offer more value and flexibility through unbundled purchasing options to Novation's VHA and UHC hospitals. Customers are provided unrestricted, open choice among Syneture's sutures and topical adhesive, and Autosuture's surgical stapling and laparoscopic instrumentation. Novation, the second largest healthcare group purchasing organization (GPO) in the United States, represents the purchasing interests of more than 2,400 hospitals with more than $23 billion in annual purchases.

About United States Surgical

United States Surgical, a business unit of Tyco Healthcare, is a leading manufacturer of innovative wound closure products and advanced surgical devices. The company's products are available through two primary business divisions: the Autosuture(TM) Division, offering a complete line of surgical devices and laparoscopic instrumentation for general and specialty procedures; and the Syneture(TM) Division, which manufactures and markets a comprehensive line of high quality sutures and biosurgery products.

Through technological innovation, empowering education, and customer- focused solutions, each U.S. Surgical division works collaboratively with physicians, nurses, and administrators to offer the best products and efficiencies possible for the benefit of the healthcare community and its patients.

About Tyco Healthcare

As a major business segment of Tyco International Ltd. (NYSE: TYC ), Tyco Healthcare manufactures, distributes and services an extensive product line including disposable medical supplies, monitoring equipment, innovative wound closure products, advanced surgical devices, medical instruments and bulk analgesic pharmaceuticals. With industry-leading brand names such as Autosuture, Kendall, Mallinckrodt, Nellcor, Puritan Bennett, Syneture and Valleylab, Tyco Healthcare products are found in virtually every healthcare setting. For further information, please visit the website at http://www.tycohealthcare.com.


Source: U.S. Surgical

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