Healthcare Industry News:   Novation 

Devices Group Purchasing

 News Release - October 25, 2006

KCI Announces New Surfaces Agreement with Novation

SAN ANTONIO--(HSMN NewsFeed)--Kinetic Concepts, Inc. (NYSE:KCI ), a global medical technology company with leadership positions in advanced wound care and therapeutic surfaces, today announced that it has been awarded two separate three-year agreements with Novation, LLC, the health care contracting services arm of VHA Inc. (Irving, TX) and University HealthSystem Consortium (Oak Brook, IL). The agreements include a three-year agreement to provide rental and sales of KCI's therapeutic beds and surfaces and a three-year agreement to provide bariatric beds, surfaces and related products. Under the terms of the agreements, KCI therapeutic and bariatric surfaces offerings will be made available to VHA's and UHC's more than 2,400 member health care facilities.

"We are very pleased that Novation chose to renew our long-standing relationship for the offering of therapeutic surfaces to Novation member facilities," said Lynne Sly, President, KCI Therapeutic Surfaces. "Our agreements with Novation will allow us to continue to provide important therapies to patients in Novation member facilities."

"The new therapeutic and bariatric agreements will provide VHA and UHC members with significant value through competitive pricing and high value beyond price demonstrated by KCI USA's clinically focused programs and services supported by a large sales, clinical and service staff," said Becky Foret, Product Manager at Novation.

About KCI

Kinetic Concepts, Inc. is a global medical technology company with leadership positions in advanced wound care and therapeutic surfaces. We design, manufacture, market and service a wide range of proprietary products that can improve clinical outcomes while helping to reduce the overall cost of patient care. Our advanced wound care systems incorporate our proprietary V.A.C. technology, which has been clinically demonstrated to help promote wound healing and can help reduce the cost of treating patients with serious wounds. Our therapeutic surfaces, including specialty hospital beds, mattress replacement systems and overlays, are designed to address pulmonary complications associated with immobility and to prevent skin breakdown. We have an infrastructure designed to meet the specific needs of medical professionals and patients across all health care settings including acute care hospitals, extended care facilities and patients' homes both in the United States and abroad.

About 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 500 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.

For more information, go to www.novationco.com.

Forward-Looking Statements

This press release contains forward-looking statements, which are based on our current expectations and are subject to a number of uncertainties. All information set forth in this release is as of October 25, 2006. We undertake no duty to update this information. More information about the company is described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2005, and our Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2006, which are on file with the SEC and available at the SEC's website at www.sec.gov.


Source: Kinetic Concepts

Issuer of this News Release is solely responsible for its content.
Please address inquiries directly to the issuing company.



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