PITTSBURGH, Jan. 31 /PRNewswire/ -- RESPIRONICS, INC. (Nasdaq: RESP), announced today that it has entered into a three-year agreement with Novation to provide selected ventilation products and accessories to health care organizations that purchase supplies through Novation. Novation is the largest supply cost management company in health care.

The agreement, already in effect, will expire on December 14, 2003. The agreement covers Respironics' critical care and noninvasive ventilators: the Esprit(R), the BiPAP(R) Vision(TM) Ventilatory Support System and the BiPAP(R) S/T-D 30. In addition, the contract includes: Respironics PLV(R) homecare & transport ventilators, and various infant care products. The new agreement was signed based on the results of Novation's public competitive bid process, which included input from VHA and the University HealthSystem Consortium (UHC) members.

"We are extremely pleased to expand our relationship with Novation for these products," commented Rich Umlor, Respironics' Vice President of Sales & Marketing, Hospital Division. "This agreement provides our complete line of noninvasive ventilators to the VHA and UHC members, allowing them to more appropriately treat respiratory patients while reducing hospital costs," added Umlor.

"The new agreement enables us to offer members high quality products in a very cost-effective manner," said Victoria Sievers, Product Manager, Novation Respiratory Therapy. "Those are mission-critical objectives for Novation."

Based in Irving, Texas, Novation was established Jan. 1, 1998, through the combination of the supply programs of VHA and UHC, two national health care alliances. In addition to serving the purchasing needs of 2,100 VHA and UHC members, Novation extends purchasing agreements to 5,300 organizations that purchase supplies through HealthCare Purchasing Partners International LLC. The largest supply cost management company in health care, Novation manages more than $15 billion in annual purchases for VHA, UHC and HealthCare Purchasing Partners International (HPPI) members.

Respironics, a recognized resource in the medical device market, provides innovative products and unique programs to health care providers while helping them to grow and manage their business efficiently. The company's focus is on home care, hospital and international markets providing programs that manage sleep disordered breathing, chronic obstructive pulmonary disease, asthma, infant care and restrictive lung disorders. Globally positioned, the company employs approximately 1,900 individuals worldwide and has manufacturing facilities in several domestic and international locations. Further information on Respironics can be found on its web site: www.respironics.com .

This document contains forward-looking statements, including statements relating to developments in the healthcare industry, third-party reimbursement policies and practices, effectiveness of programs, future sales and acceptance of the company's products and Power Program(TM), new product development, anticipated cost savings and regulatory requirements, which are subject to change. Actual results may differ materially from those described in any forward-looking statements. Additional information on potential factors that could affect the company's financial results are included in the reports filed with the SEC, including the reports on Form 10-K, 10-Q and 8-K. SOURCE Respironics, Inc.

CONTACT: Dan Bevevino, Vice President & CFO, 412-473-5235, Media, Sandy Binder, 412-473-4079, both of Respironics; or General, Joe Calabrese, Analyst, Brian Gill of The Financial Relations Board, 212-661-8030/