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Press Release

October 25, 2010 at 12:00 AM EDT

CareFusion Enters into Supply Chain Services Agreement with OM HealthCare LogisticsSM, a Business Unit of Owens & Minor

CareFusion Enters into Supply Chain Services Agreement with OM HealthCare LogisticsSM, a Business Unit of Owens & Minor

RICHMOND, Va., Oct 25, 2010 (BUSINESS WIRE) -- OM HealthCare Logistics (OM HCL), a national, third-party healthcare logistics and distribution business unit of Owens & Minor, Inc. (NYSE: OMI), announced today it has entered into a five-year agreement with CareFusion (NYSE: CFN), a leading, global medical device company, to provide third-party logistics services - including warehousing, distribution and transportation services.

"Leveraging the third-party logistics expertise of OM HealthCare Logistics enables us to implement a state-of-the-art warehousing logistics process and drive cost from our distribution networks," said Dwight Winstead, chief operating officer of CareFusion. "The agreement allows us to focus on our core compentency of improving patient safety and reducing the cost of healthcare."

As a result of this agreement, CareFusion will transition from multiple distribution facilities into two OM HealthCare Logistics distribution centers over the next 18 months. OM HealthCare Logistics will serve the CareFusion business from its existing facility in Louisville, Ky., as well as from a second, new facility in Redlands, Calif. The California facility, which will be outfitted with state-of-the-art warehousing equipment, software and technology systems, and staffed with experienced logistics teammates, is scheduled to be operational by December. Together, these two OM HealthCare Logistics' distribution centers provide an initial 475,000 square feet of cGMP compliant, ISO certified space. As it prepares for this strategically important customer, Owens & Minor is investing in certain on-boarding expenses, which will have an estimated impact of approximately $0.02 to 2010 net income per diluted share.

"This is a winning combination," said Craig R. Smith, president & chief executive officer of Owens & Minor. "CareFusion sells a broad portfolio of healthcare products, and OM HealthCare Logistics offers specific expertise in healthcare supply chain management. Becoming the logistics provider for CareFusion is an important step in our efforts to provide the healthcare supply chain with innovative solutions and new logistics efficiencies."

This relationship will also enable OM HealthCare Logistics to broaden its solution offering to provide shipment consolidation to other healthcare manufacturers. OM HealthCare Logistics' innovative use of consolidated shipping will help drive cost out of the supply chain process for CareFusion and other manufacturers. "We look forward to working with CareFusion, as OM HealthCare Logistics strives to build the most efficient, cost-effective and high-quality supply chain for CareFusion," said Denise Odenkirk, vice president of OM Healthcare Logistics. "OM HealthCare Logistics is committed to developing solutions that positively affect all participants in the healthcare supply chain."

About CareFusion Corporation

CareFusion (NYSE: CFN) is a global corporation serving the health care industry with products and services that help hospitals measurably improve patient care. The company develops market-leading technologies including Alaris® IV pumps, Pyxis® automated dispensing and patient identification systems, AirLife™, AVEA® and LTV® series of ventilators and respiratory products, ChloraPrep® skin prep products, MedMined™ services for infection surveillance, V. Mueller® and Snowden-Pencer® surgical instruments and NeuroCare diagnostic products. CareFusion employs more than 15,000 people across its global operations. More information may be found at http://www.carefusion.com.

About OM HealthCare Logistics

OM HealthCare Logistics (OM HCL), a business unit of Owens & Minor, Inc., was launched in 2009, and is a third-party-logistics provider specializing in logistics for manufacturers of healthcare products, medical devices and pharmaceuticals. OM HCL offers a broad range of customizable business solutions designed to address logistics needs in the healthcare industry. As a full-service provider of customized supply chain order-to-cash and logistics solutions, OM HCL supports all channels of healthcare distribution with state-of-the-art distribution processes. Offering out-of-the-box regulatory compliance, OM HCL is fully compliant with cGMP regulations and ISO 9001 & ISO 13485 standards. More information can be found at http://www.omhcl.com.

About Owens & Minor, Inc.

Owens & Minor, Inc. (NYSE: OMI), a FORTUNE 500 company headquartered in Richmond, Virginia, is a leading national distributor of name-brand medical and surgical supplies and a healthcare supply-chain management company. Owens & Minor is also a member of the Russell 2000® Index, which measures the performance of the small-cap segment of the U.S. equity universe, as well as the S&P MidCap 400, which includes companies with a market capitalization of $750 million to $3.3 billion that meet certain financial standards. With a diverse product and service offering and distribution centers throughout the United States, the company serves hospitals, integrated healthcare systems, alternate site locations, group purchasing organizations, and the federal government. Owens & Minor provides technology and consulting programs that improve inventory management and streamline logistics across the entire medical supply chain--from origin of product to patient bedside. For news releases, or for more information about Owens & Minor, visit the company Web site at http://www.owens-minor.com.

SOURCE: Owens & Minor

Owens & Minor, Inc.
Trudi Allcott, Director, Investor & Media Relations
Suzanne Hatcher, Director, Public Relations