NEOF Neoforma Inc. (MM)

VHA and UHC Member Hospitals Document More Than $80 Million in Value Using Neoforma Solutions Through Marketplace@Novation Hospitals Reduce Expenses Through Better Access to Information SAN JOSE, Calif., Dec. 13 /PRNewswire-FirstCall/ -- Year to date, healthcare organizations that are members of VHA Inc. and the University HealthSystem Consortium (UHC) have documented more than $82.6 million in value as a result of accessing information through Marketplace@Novation(R), the industry-leading online healthcare supply exchange. Marketplace@Novation is built and supported by Neoforma, Inc. (NASDAQ:NEOF), a leading provider of supply chain management solutions to the healthcare industry, for Novation, the supply company for VHA and UHC. (Logo: http://www.newscom.com/cgi-bin/prnh/20030226/NEOFORMALOGO ) In 2004, VHA and UHC hospitals have documented more than $82.6 million in value. During this time, 55 hospitals have documented more than $500,000 in value from Marketplace@Novation; 19 of these hospitals have documented value of more than $1.0 million each. Using Marketplace@Novation, VHA and UHC member hospitals have access to critical information that enables them to increase the efficiency of their daily order processes and to make better, more informed purchasing decisions, driving savings to all participants in the healthcare supply chain. "We're proud of the role Neoforma is playing to help drive value, which we define as savings and cost avoidance for hospitals, especially with the rising cost of healthcare in this country and its effect on American families," says Judy Rowe, vice president of customer success services at Neoforma. "In the past year, customers have measured and documented the value of Marketplace@Novation, and we look forward to building on this foundation in 2005 by working more closely with our customers to help them drive more value to their organizations." Several hospitals, including Queen's Medical Center in Honolulu, have been able to document more than $2.5 million in value. Among others, Integris Health in Oklahoma City has documented more than $1.0 million in value by incorporating Marketplace@ Novation into its supply chain management processes. Integris Health continues to realize value as it utilizes Marketplace@Novation functionality to closely monitor contract compliance. "Saving money and avoiding unnecessary supply costs has led Evanston Northwestern Healthcare to document $335,500 in value this year," says Tom Konsoer, vice president of purchasing and material services at Evanston Northwestern Healthcare, in Evanston, Ill. "Using Neoforma's solutions through Marketplace@Novation, we have been able to streamline processes and focus more of our dollars toward improving patient care." Neoforma and Novation have been working with VHA and UHC members for little more than a year to document value. In late 2003, Neoforma and Novation embarked on a retrospective value documentation program with a pilot group of 31 VHA and UHC members, initially identifying $12.3 million in value. In 2004, Neoforma and Novation continued this effort, documenting another $82.6 million in value, including $26.5 million in the third quarter of 2004 alone. As part of this effort, more than 260 hospitals have established benchmarks against which they can measure their ongoing progress in driving supply chain efficiency. "Using Neoforma solutions through Marketplace@Novation, we've been able to streamline processes and gain tremendous efficiencies throughout our supply chain," says Bill Mitchell, director of materials management at Portneuf Medical Center in Pocatello, Idaho. "By automating manual tasks, we've been able to focus on more strategic issues that require our analysis and attention." About Neoforma Neoforma is a leading supply chain management solutions provider for the healthcare industry. Through a unique combination of technology, information and services, Neoforma provides innovative solutions to over 1,500 hospitals and suppliers, supporting more than $10 billion in annualized transaction volume. By bringing together contract information and order data, Neoforma's integrated solution set delivers a comprehensive view of an organization's supply chain, driving significant cost savings and better decision-making for both hospitals and suppliers. For more information, point your browser to http://www.neoforma.com/ . About Novation Based in Irving, Texas, Novation was established in January 1998 through a combination of the supply programs of VHA and UHC, two national health care alliances. Novation serves the purchasing needs of more than 2,300 members and affiliates of VHA and UHC. In 2003, VHA and UHC members purchased more than $22 billion in supplies through Novation contracts. For more information, go to http://www.novationco.com/. This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include but are not limited to all related to the value realized by our customers. There are a number of risks that could cause actual results to differ materially from those anticipated by these forward-looking statements. These risks include the willingness of customers to accept Neoforma's business model of providing supply chain management solutions for the healthcare industry and the ability of Neoforma to manage its anticipated growth and related technological challenges. These risks and other risks are described in Neoforma's periodic reports filed with the SEC, including its Form 10-Q for the quarter ended June 30, 2004. These statements are current as of the date of this release and Neoforma assumes no obligation to update the forward- looking information contained in this news release. http://www.newscom.com/cgi-bin/prnh/20030226/NEOFORMALOGO http://photoarchive.ap.org/ DATASOURCE: Neoforma, Inc. CONTACT: media, Jen Reidy, +1-415-891-8300, or , for Neoforma; or Kristin Lucido of Novation, +1-972-581-5116, or ; or investors, Amanda Mogin of Neoforma, +1-408-468-4251, or ; Web site: http://www.neoforma.com/

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