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ZEVEX International (ZVXI) Announces Strategic Agreement With Numico



10/19/2005 5:11:41 PM

SALT LAKE CITY, July 22 /PRNewswire-FirstCall/ -- ZEVEX International, Inc. and Royal Numico N.V. (Euronext Amsterdam: NUM) announced the signing of a strategic distribution, manufacturing and service agreement. Under the terms of the agreement, Numico's Clinical Nutrition Division will become the exclusive distributor of future ZEVEX enteral feeding pumps in several major markets outside of North America. Also, ZEVEX will become the exclusive manufacturer and the primary maintenance service provider for all enteral feeding pumps for Numico's Clinical Nutrition Division.

This agreement has an initial five-year commitment period and will renew automatically. ZEVEX estimates that the combined impact of the distribution, manufacturing and service components of this agreement will increase revenue by more than $7.0 million annually, beginning in 2005. This would represent growth of 27% over the company's 2003 revenue, and 56% growth over the company's 2003 Therapeutics division revenue.

Numico is a leading global specialized nutrition company, with annual revenue of approximately $2.0 billion. Numico's Clinical Nutrition Division holds leading market positions for clinical nutrition products in Europe and other key markets and generated over $660 million in revenue in 2003. By this agreement, Numico will market certain enteral nutrition pumps, accessories and disposables manufactured by ZEVEX in more than 30 countries outside of North America. Within the next six to nine months, Numico will transfer manufacturing of its enteral feeding pumps to ZEVEX.

ZEVEX plans to establish a service center in the European Union by early 2005 in order to service the installed and rapidly growing base of Numico's enteral nutrition feeding pumps. This new ZEVEX service center will provide maintenance service for Numico's enteral feeding pumps, as well as future ZEVEX pumps.

David McNally, Chairman and CEO of ZEVEX, said, "Numico and ZEVEX share the vision of continuing and growing our leadership positions in the global clinical nutrition industry. The marketing/sales and distribution excellence of Numico's Clinical Nutrition Division, combined with their well-established global presence and widely recognized brands, make them an ideal partner for the expansion of our Therapeutics business."

Mr. McNally continued, "This agreement represents a tremendous step forward for ZEVEX in terms of future potential revenue and earnings growth. The agreement is a result of the successful efforts of many dedicated ZEVEX employees who, by establishing our reputation as the leader in enteral nutrition delivery technology, have positioned us for this strategic opportunity."

About ZEVEX International, Inc.

ZEVEX International, Inc. (http://www.zevex.com/), founded in 1986, transforms life with its patented and proprietary medical device technologies. The Therapeutics division markets award-winning enteral nutrition delivery devices. The Applied Technology division designs and manufactures advanced medical components and systems for the Therapeutics division, as well as for other medical technology companies.

About Royal Numico N.V.

Royal Numico N.V. (http://www.numico.com/) is a specialized nutrition company with leading positions in Baby Food and Clinical Nutrition. The company operates in over 100 countries and employs approximately 10,500 people. Royal Numico reported net sales of approximately $2 billion for continuing operations in 2003.

Forward-Looking Statements

Statements made in this press release, including those relating to anticipated revenue growth and other statements regarding future performance, are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. Among other things, the Company's efforts to increase its sales could be more difficult or expensive than the Company currently anticipates. In addition to the foregoing, the economic, competitive, governmental, technological and other factors identified in the Company's filings with the Securities and Exchange Commission, including the Form 10-K for the year ended December 31, 2003, may cause actual results or events to differ materially from those described in the forward looking statements in this press release.

This article is current as of the date of original publication and is provided for historical informational purposes only. ZEVEX makes no representations that the information in this article is current as of the date the article is accessed and takes no responsibility for updating the information contained in its articles.

ZEVEX International, Inc.

CONTACT: Nancy E. Schultz, Director, Corporate Communications/InvestorRelations of ZEVEX International, Inc., +1-801-264-1001, ext. 203,nschultz@zevex.com


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