U.S. Surgical Awarded Novation Contracts for Wound Closure, Surgical Stapling and Laparoscopic Instrumentation Products

NORWALK, Conn. -- U.S. Surgical, a business unit of Tyco Healthcare, has been awarded contracts by Novation, the supply company of VHA Inc. and the University HealthSystem Consortium (UHC). Under these awards from the nation's leading supply services organization, U.S. Surgical and its Syneture and Autosuture divisions will offer VHA and UHC member healthcare organizations access to flexible purchasing options

for an array of suture, topical adhesive, and surgical stapling and laparoscopic instrumentation. 

The contracts, which are part of a multi-source award for wound closure and endomechanical products, take effect April 1, 2005 and run through March 31, 2008. VHA and UHC have the potential to purchase as much as $900 million in the eight product categories that make up Novation's complete wound closure and endomechanical offering.

The contract awards come in the midst of legislative and regulatory

pressure to lower medical costs by increasing competitiveness in the overall

healthcare marketplace.  Novation represents the purchasing interests of more

than 2,300 members and affiliates of VHA and UHC by delivering industry-

leading supply services to assist member hospitals in improving and sustaining

their clinical and financial performance. To accomplish this, Novation focuses

on competitive pricing and cost reduction through its market-leading contract

portfolio.

"At U.S. Surgical, we are focused on serving surgeons and their patients

by bringing them the most innovative and highest quality products available on

the market. We also are sensitive to the intense financial pressure that

hospitals and patients across the country face, and we hope that our

agreements with Novation will allow more medical facilities to purchase the

finest wound closure, surgical stapling and laparoscopic instrumentation

products in an efficient and cost-effective manner. We are pleased to be part

of Novation's market-changing strategy," said Kevin Gould, president of Tyco

Healthcare North America.

Under the terms of the contract, Novation member affiliates may choose to

purchase the following U.S. Surgical products:

     * U.S. Surgical's Autosuture products, a line of innovative surgical

       stapling and minimally invasive surgery instrumentation, and

     * U.S. Surgical's Syneture wound closure products, a new and enhanced

       line of sutures and Indermil topical tissue adhesive.

    To ensure transitional clinical success for VHA and UHC members that fully

convert to a U.S. Surgical product line, U.S. Surgical will provide

personalized support services to affiliates' clinicians.  For the duration of

the transition period, the company will provide representatives on-site in

member hospitals or on call (24 hours a day, seven days a week) to educate

clinicians about distinctions among U.S. Surgical's products and those of

other manufacturers.  In addition, U.S. Surgical offers hospitals a broad set

of educational and other support services -- both during and after the

transition.  Timing for phase-in of the new contract(s) with VHA and UHC

members will be tailored to each affiliate's needs -- an effort to maximize

the clinical and financial success of the transition while minimizing

disruption within the healthcare organization.

"We are delighted to offer our Syneture wound closure and

Autosuture surgical stapling and laparoscopic instrumentation products

through Novation.  Working with Novation is a significant opportunity for us

to bring our products to a wider physician and hospital audience, and we are

committed to establishing long-term purchasing relationships with the members

Novation serves," said Alan Panzer, president of Tyco Healthcare's Surgical

Group.

United States Surgical, a business unit of Tyco Healthcare, is a leading

manufacturer of innovative wound closure products and advanced surgical

devices.

Source: Tyco Healthcare