I-Flow Corporation Announces Award Of Multi-Year Contract For ON-Q By HealthTrust Purchasing Group

LAKE FOREST, Calif.--(BUSINESS WIRE)--I-Flow Corporation (NASDAQ:IFLO) announced today that the company has been awarded a three-year national purchasing contract by HealthTrust Purchasing Group (HealthTrust), a healthcare group purchasing organization (GPO), to make the ON-Q Pain Relief System available to all its members. This includes ON-Q® PainBuster®, ON-Q SilverSoaker™ Antimicrobial Catheter with SilvaGard® and ON-Q C-bloc®. The agreement will be in effect from October 1, 2008 through September 30, 2011.

"I-Flow's agreement with HealthTrust will help the GPO's member organizations optimize post-surgical care for their patients by offering them better pain control after surgery while significantly reducing patients' narcotic intake," said Donald M. Earhart, President and CEO of I-Flow Corporation. "We believe that ON-Q will also become an important part of surgical site infection (SSI) prevention as facilities nationwide become financially responsible for select hospital-acquired conditions that Centers for Medicare & Medicaid (CMS) will no longer pay for starting on October 1 of this year. This contract is a great win for both our companies and for our customers as we believe that it further acknowledges ON-Q as a best practice that is rapidly growing to become a standard of care."

Clinical research has shown that ON-Q improves post-surgical outcomes by significantly reducing the need for narcotics while providing significantly better pain relief than narcotics alone so patients get back to normal faster. Concurrently, ON-Q may also help reduce SSIs by decreasing the need for narcotics that impair the immune response. With ON-Q, patients are often discharged from the hospital earlier which frequently leads to cost savings.

About HealthTrust Purchasing Group, LP

HealthTrust Purchasing Group, headquartered in Brentwood, Tennessee, is a group purchasing organization that supports over 1,400 not-for-profit and for-profit acute care facilities, as well as ambulatory surgery centers, physician practices and alternate care sites. With an annual purchasing volume by its members of more than $13 billion, HealthTrust is committed to obtaining the best price for clinically-recommended products, ensuring their timely delivery and continuously evaluating and improving its services to the patients, physicians and clinicians it serves.

About ON-Q

The ON-Q PainBuster Post-Op Pain Relief System provides continuous infusion of a local anesthetic directly into the patient's surgical site for effective, non-narcotic post-operative pain relief for up to five days, getting patients on their feet faster. It reduces patients' need for narcotics and decreases potential of breakthrough pain. Also, it's simple, yet elegant and requires little to no management or intervention by the patient or caregiver. The device is completely portable and can be carried in a pouch or attached to a patients' clothing.

I-Flow, the makers of ON-Q, now has contracts with the major GPOs in the U.S., including HealthTrust, Amerinet, Broadlane, MedAssets, Novation and Premier.

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. For more information on I-Flow Corporation visit www.iflo.com.

"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; potential non-cash purchase accounting adjustments associated with the AcryMed acquisition; 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.

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