Healthcare Industry News:  Vital Signs Inc 

Devices Group Purchasing

 News Release - September 27, 2006

Vital Signs Announces Three-Year Contract With Novation, Inc.

TOTOWA, NJ--(Healthcare Sales & Marketing Network)--Sep 27, 2006 -- VITAL SIGNS, INC. (NASDAQ:VITL ) today announced the award of a three-year supply agreement with Novation, the health care contracting services company of VHA Inc. and the University Healthsystem Consortium (UHC). The agreement is effective for the period January 1, 2007 through December 31, 2009 and covers anesthesia breathing circuit systems. It also includes participation in the Novation Anesthesia Standardization Program which offers Vital Signs the opportunity to broaden its sales to Novation members by providing them with additional savings opportunities.

"We are quite pleased to add this new Novation agreement to our GPO portfolio. This agreement provides the first opportunity for Vital Signs and Novation to partner in such an important product area. Our patented breathing system, LIMB-O™, when combined with our latex free breathing bags, will provide Novation members the option of selecting the most advanced product to address clinical efficacy and safety for both the patient and clinician," stated Mark Jefferson, Vice President Sales & Marketing at Vital Signs Inc.

Vital Signs, Inc. and its subsidiaries design, manufacture and market primarily single-use medical products for the anesthesia, respiratory/critical care and sleep/ventilation markets, achieving the number one market share position in five of its major product categories. Vital Signs is ISO 13485 certified and has CE Mark approval for its products.

All statements in this press release (including statements statement regarding potential new sales opportunities) other than historical statements constitute Forward-Looking Statements under the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from such statements as a result of a variety of factors, including difficulties in gaining additional market share through the Novation agreement, the reaction of competitors and the risk factors referred to by Vital Signs in its Annual Report on Form 10-K for the year ended September 30th, 2005.

Source: Vital Signs, Inc

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