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Global Healthcare Exchange Completes Acquisition Of Neoforma, Inc. (NEOF)


3/6/2006 12:20:59 PM

WESTMINSTER, Colo., March 6 /PRNewswire/ -- Global Healthcare Exchange, LLC (GHX) has completed today the acquisition of Neoforma, Inc. , having satisfied all of the conditions outlined in the definitive merger agreement announced in October, 2005. The merger officially closed on March 6, 2006. Immediately prior to the merger, both VHA Inc. (VHA) and University HealthSystem Consortium (UHC), which collectively owned the majority of Neoforma's outstanding shares, exchanged a portion of their Neoforma shares for equity positions with GHX. This brings the number of owners of GHX to 20 and further expands the breadth and balance of the ownership base, which includes representatives of the entire healthcare supply chain.

GHX will immediately begin migrating Neoforma customers to the GHX exchange, while ensuring all customers of both exchanges continue to have access to existing functionality. The merger adds a significant number of new customers to GHX, bringing the total participants to approximately 2500 acute care hospitals, 800 non-acute facilities and 200 supplier organizations.

The merger is anticipated to drive opportunities for greater customer value by enhancing existing services. For example, combining Neoforma Data Management Solutions with GHX Content Center will create advanced data services expected to improve business processes, such as procurement and contracting. Additionally, GHX will continue to provide business intelligence services through Healthcare Products Information Services (HPIS). These include market share data, as well as contract management and sales analysis tools, for healthcare suppliers.

Prior to the merger, both GHX and Neoforma offered similar, yet complementary, products and services designed to improve efficiencies, accuracy and collaboration. "By combining the two companies, we will deliver a comprehensive suite of products and services to a greater percentage of the healthcare supply chain," says Michael Mahoney, chief executive officer of GHX. "Eliminating redundant operations will enable GHX to devote more resources to technology development and consultation that help our customers improve current business processes."

To meet the needs of its expanded customer base, GHX is hiring an additional 150 employees, including approximately 80 Neoforma employees who have accepted full-time positions with GHX.

GHX will continue to be headquartered in Westminster, Colo., with North American operations in Nashville, Tenn., San Jose, Calif., Ambler, Pa. and Toronto, Canada. Supply chain management services from GHX will be open to all participants in the healthcare supply chain, regardless of size, GPO affiliation or for-profit status.

GHX has also executed a separate outsourcing agreement with VHA, UHC and Novation, LLC to provide supply chain management products and services for VHA and UHC hospital members. Novation is the contracting arm of VHA and UHC.

About Global Healthcare Exchange

Global Healthcare Exchange (GHX) provides an open and neutral electronic trading exchange, as well as complementary products and services, designed to improve the procurement-to-payment process in the healthcare supply chain. Service offerings include:

* Exchange services that support trading partner connectivity and provide electronic transaction sets, order validation and reporting tools * Content services which utilize the GHX AllSource(R) product content repository to build the foundation for data synchronization and advanced content services * Contract services that allow users to maximize contract utilization * Procurement services that enable automation of the requisitioning process * Business Intelligence reports designed to provide strategic decision-making data

Through these services, healthcare providers and suppliers can improve efficiencies, automate processes and reduce operating expenses. Equity owners of GHX are Johnson & Johnson Health Care Systems Inc.; GE Healthcare; Baxter Healthcare Corp.; Medtronic USA, Inc.; Abbott Exchange, Inc.; Siemens; Becton, Dickinson & Co.; Boston Scientific Corp.; Tyco Healthcare Group, LP; Guidant Corp.; C.R. Bard, Inc.; AmerisourceBergen Corp.; Cardinal Health, Inc.; Fisher Scientific International, Inc.; McKesson Corp.; B Braun Medical Inc.; Premier, Inc.; HCA; VHA Inc. and University HealthSystem Consortium. For more information, visit www.ghx.com.

Global Healthcare Exchange, LLC

CONTACT: Karen Conway, Industry Communications Director of GlobalHealthcare Exchange, +1-719-488-0359, or +1-720-887-7215, or cell,+1-303-564-2147, kconway@ghx.com


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