Healthcare Industry News:  Medegen 

Devices Litigation

 News Release - September 18, 2007

Medical Action Clarifies That the Patent Litigation of Medegen, Inc. is Unrelated to Its Acquisition of Medical Products Division Acquired in October 2006

HAUPPAUGE, N.Y.--(HSMN NewsFeed)--Medical Action Industries Inc. (NASDAQ/MDCI), a leading supplier of medical and surgical disposable products, today clarified that the recently announced decision by a U.S. Federal Court in a patent infringement case commenced by Medegen, Inc. is unrelated to the acquisition by Medical Action of the Medegen Medical products division in October 2006. Paul D. Meringolo, CEO and President, noted that "Medegen, Inc. and its Medegen Medical Manufacturing Services, Inc. subsidiary were not part of our acquisition and is in no way connected to the operations of Medegen Medical Products, LLC nor do we have any financial interest in either company or the outcome of its litigation."

Medical Action is a diversified manufacturer of disposable medical devices. Its products are marketed primarily to acute care facilities in domestic and certain international markets. Further, Medical Action has expanded its target market to include physician, dental and veterinary offices, out-patient surgery centers and long-term care facilities. Medical Action is a leading manufacturer and distributor of many of its products in the markets we compete in. Our products are marketed through an extensive network of direct sales personnel and independent distributors. Medical Action has preferred vendor agreements with national distributors, as well as contracts with nearly every major group purchasing alliance. The Company's common stock trades on the NASDAQ Global Select Market under the symbol MDCI and is included in the Russell 2000 Index.

This news release contains forward-looking statements that involve risks and uncertainties regarding Medical Action's operations and future results. Please see the Company's filings with the Securities and Exchange Commission, including, without limitation, the Company's Form 10-K and Form 10Q's, which identify specific factors that would cause actual results or events to differ materially from those described in the forward-looking statements.

Source: Medical Action Industries

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