I-Flow Corp. Signs Five Year Agreement With B. BraunMedical Inc. to Distribute I-Flow's...

LAKE FOREST, Calif.--(BUSINESS WIRE)--Sept. 10, 1998--

Agreement Expands I-Flow's Home Health Care Distribution

Capability and Opens New Hospital Distribution Channel for Its

Disposable Infusion Products

I-Flow Corp. (NASDAQ:IFLO)

Thursday announced that it has signed a five year agreement with B. Braun Medical Inc., a world leader in the manufacture and distribution of pharmaceuticals and infusion products, to distribute I-Flow's disposable elastomeric infusion products in the United States and Canada. Financial terms of the agreement were not disclosed.

"This agreement represents an important growth opportunity for I-Flow, and we are delighted to be associated with a firm of the caliber of B. Braun Medical. Not only does this agreement strengthen I-Flow's distribution network in the home care/alternate site market but it also positions us for the first time to establish a foothold in the hospital segment of the market. With this agreement B. Braun adds I-Flow's disposable infusion products to their own extensive line of infusion products, while I-Flow benefits from B. Braun's national home care and hospital distribution network and their 125 direct sales professionals," said I-Flow chairman, president and chief executive officer Donald M. Earhart.

Bob Murphy, B. Braun Medical's vice president of marketing, said, "This agreement enables us to provide our customers with an even wider range of leading infusion products based on the latest technology. I-Flow's broad line of superior-quality, low-cost elastomeric infusion systems, which represent an efficient method of delivering IV therapy in certain applications in the alternate care site and the hospital, are a welcome addition to our family of infusion products. We are very pleased to be working with I-Flow."

The agreement covers I-Flow's HOMEPUMP Eclipse(R) and One-Step KVO elastomeric products. Elastomeric infusion systems are designed to deliver medications such as antibiotics, pain medication, and chemotherapy drugs in a wide range of volumes and delivery times. The One-Step KVO, which was introduced late last year, substantially eliminates the need for IV flushing. "As an alternative product to flushing, the One-Step KVO is more cost effective, while reducing the prevalence of occluded catheters and other complications associated with catheter maintenance," Earhart said.

B. Braun Medical, headquartered in Bethlehem, Pa., is a wholly owned subsidiary of B. Braun Melsungen AG, the fourteenth largest medical products manufacturer, developer and distributor in the world with operations in over 45 countries and annual net sales of over $2.5 billion.

With the recent acquisition of McGaw, B. Braun Medical is well positioned as a full-line supplier of IV and related products. B. Braun's combined operations in the U.S. represent net sales of approximately $600 million and constitute a significant force in the U.S. medical products industry, positioned better than ever for continued growth.

I-Flow designs, develops and markets technically advanced, low cost ambulatory infusion systems that deliver fluids for a variety of medical treatments in the home, alternate site/outpatient centers and hospitals.

The statements contained in this release which are not historical facts may be deemed to contain forward-looking statements with respect to events, the occurrence of which involve significant risks and uncertainties, including, without limitation, future demand for the Company's services, competition within the industry, and other risks or uncertainties detailed in the Company's Securities and Exchange Commission filings.

CONTACT: I-Flow Corp., Lake Forest

Gayle L. Arnold, 714/206-2700

or

Neil G. Berkman Associates, Los Angeles

310/277-5162