Healthcare Industry News:  ZOLL Medical 


 News Release - September 24, 2007

ZOLL Medical Equipment Selected for $11.6 Million Emergency Preparedness Contract for State of California

CHELMSFORD, Mass.--(HSMN NewsFeed)--ZOLL Medical Corporation (NASDAQ GS: ZOLL), a manufacturer of resuscitation devices and related software solutions, today announced that it has been selected for an $11.6 million contract as part of the emergency preparedness project for the State of California. ZOLL expects it will deliver more than 1200 M Series® and AED Pro® defibrillators to strategic locations within California by the end of calendar 2007.

The California Department of Public Health accelerated its emergency plans in response to the immense devastation Hurricane Katrina inflicted on the Gulf Coast in 2005. The ZOLL equipment is being utilized as part of a major preparation effort to respond to a pandemic resulting from an earthquake, mudslide, fire, flu outbreak, terrorist or nuclear attack. The California contract is being coordinated by consolidator Global Protection Acquisition, Inc.

The ZOLL defibrillators will be available at multiple sites in California should a large scale event occur when patients cannot all be treated in hospitals. The units, owned by the state of California, will be maintained and warehoused at multiple sites to ensure their readiness. ZOLL will provide support in this effort.

"This contract strongly validates the quality and durability of ZOLL products, and highlights the significant inroads we have made in the pre-hospital market in California and with government entities across the United States," said Richard A. Packer, ZOLL President and Chief Executive Officer. "The State of California has put its faith in ZOLL as part of its preparation to respond to potential natural disasters and ongoing terrorist threats."

Mr. Packer also noted, "The contract calls for shipment in multiple phases over this quarter and next. In addition, ZOLL will be providing some modest ongoing support as part of the readiness effort. We are currently reviewing accounting for the contract and have not yet determined the timing of revenue recognition. Therefore, we are not changing our guidance at this time, but anticipate a potentially larger backlog than usual coming out of fiscal 2007. Given its size, this deal also reflects volume pricing and, therefore, our related gross margin will be lower than normal. We are happy to see continued progress in government-funded business, this time from a state government rather than the federal government."

The ZOLL defibrillators selected by the State of California for treating sudden cardiac arrest, the leading cause of death worldwide, are used as the standard device in leading healthcare facilities around the world.
  • The ZOLL M Series combines total diagnostic and therapeutic capabilities in a small, lightweight unit with a high contrast display. The M Series includes easy-to-use defibrillation, external pacing, EtCO2, SpO2, NIPB, built-in AC or DC power, and a complete data management system.
  • The AED Pro, with its advanced design, is the most rugged and durable AED on the market. It is built to withstand pounding rain, searing heat, and freezing cold, and passes a 1.5 meter drop test. It features Real CPR Help(TM) for gauging the rate and depth of chest compressions, which helps rescuers to improve the efficacy of their compressions during a rescue.
About ZOLL Medical Corporation

ZOLL Medical Corporation is committed to developing technologies that help advance the practice of resuscitation. With products for pacing, defibrillation, circulation, ventilation, and fluid resuscitation, ZOLL provides a comprehensive set of technologies that help clinicians, EMS professionals, and lay rescuers resuscitate sudden cardiac arrest or trauma victims. ZOLL also designs and markets software that automates the documentation and management of both clinical and non-clinical information.

ZOLL markets and sells its products in more than 140 countries. The Company has direct operations, distributor networks, and business partners throughout the U.S., Canada, Latin America, Europe, the Middle East and Africa, Asia, and Australia.

Certain statements contained in this press release regarding matters that are not historical facts are "forward-looking" statements (as defined in the Private Securities Litigation Reform Act of 1995). Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, ZOLL's ability to compete in the resuscitation business; acceptance of its recently launched products; changes in regulations affecting the healthcare industry; global economic conditions; and those other factors discussed in the section entitled "Risk Factors" in ZOLL's Quarterly Report on Form 10-Q, which was filed with the SEC on August 10, 2007.

©2007 ZOLL Medical Corporation. All rights reserved. 269 Mill Road, Chelmsford, MA 01824-4105. Real CPR Help is a trademark of ZOLL Medical Corporations. ZOLL, M Series and AED Pro are registered trademarks of ZOLL Medical Corporation.

Source: ZOLL Medical

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