Healthcare Industry News:   Novation 

Devices Supply Chain Management

 News Release - June 12, 2006

Owens & Minor Signs 5-Year Agreement with Novation to Provide Medical and Surgical Product Distribution for Member Hospitals

RICHMOND, Va.--(HSMN NewsFeed)--June 12, 2006--Owens & Minor (NYSE: OMI ) announced today it has recently signed a five-year agreement with Novation, the healthcare contracting services company for VHA Inc., and the University HealthSystem Consortium (UHC), for distribution of medical and surgical supplies to acute-care provider members. The new contract extends a long-term relationship between Owens & Minor and Novation.

Under terms of the contract, which is effective from September 1, 2006 through August 31, 2011, the 2,500 members of VHA Inc. and UHC may select Owens & Minor to provide distribution, logistics and other supply chain management services, all of which improve the effectiveness and cost of the healthcare supply chain. According to Novation, its VHA and UHC members collectively purchase approximately $4.5 billion in medical and surgical products through Novation each year.

"This contract continues our long-term relationship with Novation," said Craig R. Smith, president & chief executive officer of Owens & Minor. "We value our relationship with Novation and with VHA and UHC member hospitals and look forward to serving the membership with our state-of-the-art logistics and distribution services for the next five years."

Novation

Based in Irving, Texas, 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 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.

Owens & Minor, Inc., (NYSE: OMI ) a FORTUNE 500 company headquartered in Richmond, Virginia, is the leading distributor of national name-brand medical and surgical supplies and a healthcare supply chain management company. With a diverse product and service offering and distribution centers throughout the United States, the company serves hospitals, integrated healthcare systems, alternate care locations, group purchasing organizations, the federal government and consumers. Owens & Minor provides technology and consulting programs that enable healthcare providers to maximize efficiency and cost-effectiveness in materials purchasing, improve inventory management and streamline logistics across the entire medical supply chain--from origin of product to patient bedside. The company also has established itself as a leader in the development and use of technology. For news releases, or for more information about Owens & Minor, visit the company Web site at www.owens-minor.com.


Source: Owens & Minor

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