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To: Cornstock who wrote (626)	1/16/1998 7:53:00 AM
From: inchingup	Read Replies (1) \| Respond to of 1488

To Instock:ALERT!! ALERT!! Just Received this: ubject: National Healthcare January 16, 1998 News Release Date: Thu, 15 Jan 1998 17:05:31 -0800 From: National Healthcare Manufacturing Corporation <nhmc@ultranet.ca> To: nhmc@ultranet.ca National Healthcare Manufacturing Corp. (NASDAQ:NHMCF / VSE:NHM) Internet: www.nationalhealthcare.com Contact: Alex P. Tsakumis (800)883-8841 / (604)689-8581 FOR IMMEDIATE RELEASE LONG TERM MEDICAL LOGISTICS SYSTEM ESTABLISHED FOR FIVE FLORIDA BASED HOSPITALS January 16, 1998 - National Healthcare Manufacturing Corporation (NHMC) is pleased to announce its subsidiary National Healthcare Logistics (NHCL) has signed its first long term agreement to establish and manage a "Hub & Spoke" distribution center for five Florida based hospitals including Sarasota Memorial and the Lee Memorial Healthcare System of Fort Myers. The Hub & Spoke logistics system will revolutionize supply chain management for U. S. and Canadian hospitals. This Hub & Spoke center, the first of many, will be owned by the participating hospitals, and will account for over US $300 million ($ 430 CDN) in purchases over the term of the agreement. The Hub & Spoke system replaces conventional distribution methods, and will lower the total cost for logistical support by as much as 15-20%. NHCL's President, Duane Jorgensen stated "as more hospitals are learning of the tremendous potential cost savings from our Hub & Spoke Program, they are moving away from the current high cost distribution systems to Hub & Spoke." NHCL's Hub & Spoke system is revolutionary because it dedicates the distribution center to serve only those hospitals participating in the local alliance. The hospitals will gain additional benefit through the ability to replace hundreds of supply sources with one distribution entity and shift many other internal functions to the hub. The "Hub" is the dedicated distribution center and serves as the platform upon which "Spokes"may be formed by mutual consent of the participating hospitals . Each NHCL "Hub" is customized to meet specific local requirements. Feasibility studies conducted by NHCL will allow each hospitals to determine the benefits to be gained from developing any particular "Spoke". The Spokes are common services that can be cost shared by the local alliance or integrated Delivery Network. Spokes can take cost savings beyond the 15-20% range mentioned above, and be a source of new revenue for the hospitals. According to Jorgensen, "many hospitals will prefer to outsource completely and will, therefore, contract with NHCL to assume the ownership, and accept the financial risk for the Hub." Mac Shahsavar, President and CEO of National Healthcare said, " We are very excited about the potential of the Hub & Spoke Program. In addition to NHCL's consulting fees for managing these centers, National Healthcare will benefit by establishing an immediate conduit to market its products and services directly to healthcare providers." Shahsavar continued, "National Healthcare is rapidly emerging as a market leader capable of providing the healthcare industry with a comprehensive array of products and services incorporating custom packaging, sterile re-packing, and laundry services, along with the state of the art supply management distribution technology. In the past two years NHMC has broadened its multi-faceted mandate to include: 1. Logistics and distribution centers (Hub & Spoke) where NHMC in partnership with hospitals and/or SYSCO Corp.(NYSE: SYY) designs and implements centralized logistic services for regional authorities. 2. NHMC Hub & Spokes centers will be enhanced by construction of facilities where reusable products such as Mertex and other protective wear will be packed, sterilized and delivered daily to hospitals. 3. Packaging services where NHMC will provide procedure based disposable kits and trays to meet most procedural supply needs in hospitals. By centralizing these services within the Hub & Spoke/Packaging Centers, NHMC expects to deliver significant cost savings to the healthcare system while providing high levels of customer focused service. We will continue our pursuit for innovative products and services to further minimize healthcare costs to end users." On Behalf of the Board, M. Seyed Torabian, P.Eng. Executive Vice President Neither NASDAQ nor the VSE have reviewed or accept responsibility for the accuracy of this release. GARY