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Biotech / Medical : SAFESKIN -- Ignore unavailable to you. Want to Upgrade?

To: Fbk32 who wrote (776)	4/6/1999 11:05:00 PM
From: Apple12	Read Replies (1) \| Respond to of 828

SAFESKIN ESTABLISHES STRATEGIC ALLIANCE WITH OWENS & MINOR; Safeskin Becomes First-Ever Category Manager and Preferred Supplier SAN DIEGO, April 6 /PRNewswire/ -- Safeskin Corporation (Nasdaq: SFSK), a leading manufacturer of disposable latex and synthetic gloves for the healthcare, high-technology and scientific industries, today announced it has signed a strategic alliance with Owens & Minor, one of Safeskin's leading distributors, which establishes Safeskin as Owens & Minor's first-ever category manager as well as their preferred exam glove supplier. The agreement reflects Safeskin's continuing efforts to improve communications with all of its customers, especially strategic distribution partners. Under the alliance, both Owens & Minor and Safeskin share common sales targets with both companies benefiting as sales milestones are achieved. The alliance with Owens & Minor is expected to generate approximately $9 million in incremental revenue for Safeskin. "As a category manager, Safeskin moves beyond the realm of product supplier and becomes the advisor to Owens & Minor's glove business," said Richard Jaffe, Chairman, President, and Chief Executive Officer of Safeskin. "In conjunction with our supply chain initiatives, we expect to reduce their glove-related costs by narrowing their range of existing suppliers, improving the efficiency of their asset management and ultimately, their bottom line. At the same time, this agreement provides new growth opportunities for Safeskin's products within the Owens & Minor network. As the preferred supplier, we now have, in effect, Owens & Minor's nationwide sales force of 215 people emphasizing Safeskin's full line of products, including our synthetic exam glove and our new Safeskin PFS(TM) surgical glove." G. Gilmer Minor, III, Chairman, President and Chief Executive Officer of Owens & Minor said, "Our partnership with Safeskin, through our FOCUS program, strengthens our ability to take costs out of the supply chain through product consolidation and standardization while still offering superior products to our customers. With Safeskin's expert advice and its wide product line, we'll achieve benefits for our mutual customers and for both companies."

To: Fbk32 who wrote (776)	4/6/1999 11:14:00 PM
From: Apple12	Respond to of 828

"We announced reduced 1999 financial expectations in March as a result of higher than estimated distributor inventory levels and slower than anticipated ramp up of new customer contracts," said Richard Jaffe, Chairman, President and Chief Executive Officer of Safeskin. "While we are disappointed with these recent developments, even after all the adjustments, 1998 was a very strong year. "We believe Safeskin has a solid business and our growth prospects remain strong. We are signing new contracts and believe that distributors' inventories are adjusting to desired levels. We are encouraged by the enthusiastic reception of our new powder-free surgical glove, which we introduced at the Association of Operating Room Nurses Congress in late March. We are investing in product development and marketing and expect to introduce new products into high-growth markets."