Medegen Announces Sale Of Medical Products Division To Medical Action Industries Inc.

Ontario, CA - Medegen LLC, a provider of medical devices and components to the healthcare industry, announced that it has entered into an agreement to sell its Medical Products division to Medical Action Industries Inc., a publicly-held supplier of medical and surgical disposable products.

Medegen Medical Products develops, manufactures and markets disposable medical-surgical products focusing on patient care and laboratory products. It is the nation's leading supplier of patient utensil products.

"Medegen Medical Products' management team has done a tremendous job building the division over the last few years, especially in the last two years managing extraordinary increases in raw material costs while continuing to serve its customers," said Charles Stroupe, Medegen chief executive officer. "We believe Medegen Medical Products is an attractive business today that will be even better positioned for continued growth as part of the impressive and complementary portfolio of Medical Action Industries."

Stroupe continued, "With the divestiture of our Medical Products division, we will now enhance our focus on our Medical Manufacturing Services (MMS) division's fast-growing infusion therapy and contract manufacturing businesses. We have had a great start with these businesses since we acquired them in 2003 and have numerous opportunities in our MMS division's Maximus, KippMed, and Contract Manufacturing Services business units to develop meaningful market positions in the next few years."

"Our specialty intravenous (IV) therapy products business is experiencing rapid growth as clinicians and our OEM partners appreciate the unique clinical and financial benefits of Medegen's products," said Jeff Goble, Medegen MMS president. "Our focus for the MMS division will be on accelerating our investments in intellectual property development, manufacturing capacity and technology, and sales and marketing."

Medical Action Industries will take ownership of Medegen Medical Products facilities located in Northglenn, Colo. and Gallaway, Tenn. The sale is expected to close in the fourth quarter of 2006.

SOURCE: Medegen