I-Flow Signs New Insurance Contracts for ON-Q(R) -- More Patients Will Have Access to Superior...

Nationwide Acceptance of ON-Q Progresses -- Nearly 50 Insurers Now Cover ON-Q as Reimbursable for Over 57 Million Lives

LAKE FOREST, Calif. -- I-Flow Corporation (NASDAQ:IFLO) announced that it has secured additional contracts with insurance companies to cover ON-Q[R] for patients having

outpatient surgeries across the United States. This brings the total number of US lives covered to 57 million and increases the number of insurance contracts to 48. These new contracts indicate that insurance carriers continue to recognize the positive value that ON-Q delivers for their members having outpatient surgeries by providing reimbursement for ON-Q.

"We are excited that the universe of insurance companies is increasingly more willing to distinguish the value of ON-Q by including it in contracts for their members; the number of covered lives has grown by almost 50 percent in recent months," said President and CEO, Donald M. Earhart of I-Flow Corporation, the manufacturer of ON-Q. "Additionally, this demonstrates that we are making progress in insurance coverage for patients who have surgeries on an outpatient basis where length of stay is not important but where providing them with significantly better pain relief than narcotics alone and significantly reducing the amount of narcotics they need makes ON-Q a best-practice that is also cost-effective," he continued.

The number of outpatient surgeries in the United States continues to be a fast growing market and represents approximately half the number of surgeries being performed in the United States. The breadth of insurance companies nationwide that now include ON-Q in their contracts greatly increases the likelihood that patients having outpatient surgery will receive ON-Q following their procedures so they can get back to normal faster.

Separately, in January 2006, Medicare announced a change in designation of the code that includes ON-Q (A4306) to be a payable covered benefit and, therefore, medically necessary under the hospital outpatient payment system (OPPS). A year later, this ruling was expanded to include Medicare coverage of ON-Q under the facility rate for patients having their surgeries performed in non-hospital-based Ambulatory Surgery Centers (ASCs). Finally, the increasing recognition of ON-Q as a reimbursable expense by private payers for outpatient procedures indicates an industry-wide trend of the growing acceptance of ON-Q as replacing the current standard of care (narcotics) for post-surgical pain relief.

About ON-Q

ON-Q PainBuster from I-Flow Corporation (NASDAQ:IFLO) is the market leader in continuous surgical-site pain relief systems - commonly known as "pain pumps" or "pain relief pumps." It consists of a small balloon pump that holds local anesthetic (a pain-numbing medicine) and delivers it automatically through its proprietary ON-Q SilverSoaker[TM] catheter treated with an antimicrobial silver agent, SilvaGard[R], to provide even distribution of local anesthesia over a wider area than competitive devices. ON-Q is the only pain relief pump to include an antimicrobial catheter and the first and only to document an infection reduction capability.

ON-Q is labeled to significantly reduce pain better than narcotics alone and to significantly reduce narcotics intake after surgery. ON-Q was upheld as a best practice for post-surgical pain relief and its widespread use was encouraged as part of a in an independent study published in the prestigious Journal of American College of Surgeons. Currently, more than 60 studies on the use of ON-Q have been completed and published or presented, and more research is being conducted to explore the benefits of ON-Q in such areas as infection prevention, combination therapies (e.g., local anesthetic and antibiotic mixtures, a combination of a local anesthetic and an anti-inflammatory), pediatrics and chronic pain. Medicare recognizes ON-Q as a payable covered benefit and therefore medically necessary.

To learn more about the benefits of ON-Q visit www.AskYourSurgeon.com.

About I-Flow

I-Flow Corporation (www.IFLO.com) is improving surgical outcomes by designing, developing and marketing technically-advanced, low-cost drug delivery systems and innovative surgical products for post-surgical pain relief and surgical site care.

"Safe Harbor" Statement

Statements by the Company in this press release and in other reports and statements released by the Company are and will be forward-looking in nature and express the Company's current opinions about trends and factors that may impact future operating results. Statements that use words such as "may," "will," "should," "believes," "predicts," "estimates," "projects," "anticipates" or "expects" or use similar expressions are intended to identify forward-looking statements. Forward-looking statements are subject to material risks, assumptions and uncertainties, which could cause actual results to differ materially from those currently expected, and readers are cautioned not to place undue reliance on these forward-looking statements. Except as required by applicable law, the Company undertakes no obligation to publish revised forward-looking statements to reflect the occurrence of unanticipated or subsequent events. Readers are also urged to carefully review and consider the various disclosures made by the Company in this press release that seek to advise interested parties of the risks and other factors that affect the Company's business. Interested parties should also review the Company's reports on Forms 10-K, 10-Q and 8-K and other reports that are periodically filed with or furnished to the Securities and Exchange Commission. The risks affecting the Company's business include, among others: physician acceptance of infusion-based therapeutic regimens; implementation of the Company's direct sales strategy; successful integration of the Company's recent acquisition of AcryMed Incorporated and further development and commercialization of AcryMed's technologies; dependence on the Company's suppliers and distributors; the Company's continuing compliance with applicable laws and regulations, such as the Medicare Supplier Standards and the Food, Drug and Cosmetic Act, and Medicare's and the FDA's concurrence with management's subjective judgment on compliance issues; the reimbursement system currently in place and future changes to that system; product availability, acceptance and safety; competition in the industry; technological changes; intellectual property challenges and claims; economic and political conditions in foreign countries; currency exchange rates; inadequacy of booked reserves; and reliance on the success of the home health care industry. All forward-looking statements, whether made in this press release or elsewhere, should be considered in context with the various disclosures made by the Company about its business.

I-Flow, ON-Q and PainBuster are registered trademarks of I-Flow Corporation.

SilverSoaker is a trademark of I-Flow Corporation.

SilvaGard is a registered trademark of AcryMed, Inc.