Sonosite Signs Agreement with Novation

August 30, 2005

Leading Health Care Group Purchasing Organization Adds State-of-Art Hand-Carried Ultrasound Systems to its National Contract PortfolioBOTHELL, WA - August 30, 2005 - Sonosite, Inc. (NASDAQ: SONO), the world leader in hand-carried ultrasound, today announced it has signed a three-year, dual-source supply agreement with Novation for portable and vascular access ultrasound equipment and accessories. Novation is the supply company of VHA Inc. and the University Health System Consortium (UHC), two national health care alliances that serve approximately 2,500 health care providers nationwide. "We awarded this agreement to Sonosite based on member surveys, the recommendation of our member-based Diagnostic Imaging Capital Equipment task force and a public competitive bid process," said Cynthia Longueville, Novation senior product manager. "Novation looks forward to working with Sonosite to provide VHA and UHC members products that offer the best combination of quality, service and value." "With the broadest product line in the hand-carried ultrasound market, Sonosite is well positioned to serve the diverse needs of VHA and UHC members and affiliates," said Kevin M. Goodwin, Sonosite president and CEO. "Novation's customers range from academic medical institutions and community hospitals to acute care centers and nursing homes. At eight pounds and under, Sonosite systems reduce the time, risk and expense of transporting patients to an imaging center by providing high quality imaging where and when it's needed." Sonosite's newest product, the MicroMaxx„¢ system, it's third generation of hand-carried ultrasound technology, began shipping in June 2005 and represents a revolutionary crossover point between hand-carried and cart-based systems. Weighing in at approximately eight pounds and with the size and appearance of a laptop computer, the MicroMaxx system delivers high-resolution image quality at a fraction of the cost of the larger cart-based systems. Due to its advanced levels of integration and its Chip Fusion Technology, Sonosite offers a 5-year warranty on the MicroMaxx system and most of its transducers. In addition, the Sonosite product line includes the TITAN system, the 180PLUS„¢ and iLook systems. Sonosite hand-carried systems range in weight from 3 to 8 pounds, are designed to withstand the rigors of highly mobile use, can be battery operated for hours, and boot up in seconds for immediate scanning wherever needed.  Leadership in Hand-Carried UltrasoundSonosite began as a division of ATL Ultrasound and was spun off as a public company in 1998 to create hand-carried ultrasound devices. Today the company is one of the fastest growing medical technology companies in the United States with revenues growing 37% in 2004 to approximately $116 million. Sonosite is the leader in hand-carried ultrasound with an installed base of more than 20,000 units and a 60% market share worldwide in the hand-carried ultrasound market. In a recent independently conducted survey commissioned by Sonosite, customers gave the company's products an overall satisfaction rating of 97% based on image quality, ease of use, durability, reliability and ergonomic transducer design. Since the first product shipment in 1999, Sonosite ultrasound devices are increasingly being used in and for procedures where physicians need inexpensive, non-radiating imaging for diverse applications such as real time assessment in emergency situations, guiding biopsies and nerve blocks as well as for full diagnostic examinations. About SonositeHeadquartered near Seattle, Washington, Sonosite ( is represented by seven subsidiaries and a global distribution network in over 75 countries. Sonosite's small, lightweight systems are expanding the use of ultrasound across the clinical spectrum by cost-effectively bringing high performance ultrasound to the point of patient care. The company employs approximately 450 people worldwide. About NovationBased 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 2,500 members and affiliates of VHA and UHC. These organizations used Novation contracts to purchase more than $23 billion in supplies in 2004.