NEWS RELEASE

Novation Signs New Technology Agreement With Sage Products

Agreement Offers FDA-Approved CHG Cloths to Hospitals

IRVING, TX; September 19, 2007 — Novation, the health care contracting services company of VHA Inc. and the University HealthSystem Consortium (UHC), two national health care alliances, has awarded a new technology agreement to Sage Products Inc., a small veteran-owned business based in Cary, Ill. for its 2% chlorhexidine gluconate (CHG) cloths, effective July 1, 2007 through June 30, 2010.

Products containing two percent CHG are U.S. Food and Drug Administration approved for preoperative skin preparation. Whereas existing delivery systems utilize foams or gels, this is the first and only FDA-approved delivery system on the market that utilizes a cloth applicator delivery system for CHG. Cloth applicators eliminate the drips, runs, and pooling experienced with liquid applications, and are non-abrasive, reduce prep time, and facilitate CHG delivery to hard-to-reach areas.

The agreement was awarded through Novation’s new technology evaluation process, which accelerates the review process so new and improved technologies do not have to wait for a scheduled competitive bid. The process allows alliance member organizations speedier access to savings on the latest FDA-approved medical technology.

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About Novation
Founded in 1998, Irving, Texas-based, Novation is the leading health care contracting services company, delivering unmatched savings and value to nearly 2,500 members of VHA Inc. and the University HealthSystem Consortium (UHC), two national health care alliances and nearly 12,000 members of Provista, LLC. Through its competitive contracting process, Novation develops and manages contracts with more than 500 suppliers. Novation offers the most extensive range of advanced contracting services, including: contract development, contract and supplier management, custom contracting, enhanced savings programs, online contract management and analytical tools, order management and online supplier connectivity. VHA, UHC and Provista members used Novation contracts to purchase more than $33.1 billion in 2007.

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