Vanson HaloSource and Medline Sign Contract to

License HaloShield® for Odor-Control Incontinence Pads

FOR IMMEDIATE RELEASE           

Contact:
Sean Manne
Vanson HaloSource
(425) 881-6464
smanne@vanson.com

John J. Marks
Medline Industries, Inc.
jmarks@medline.com

Annie Morrow
Firmani & Associates, Inc.
(206) 443-9357
annie@firmani.com

March 26, 2004

(Auburn, Washington) —Vanson HaloSource today announced it has reached an agreement with Medline Industries, Inc. to license and exclusively use its patented HaloShield hygienic coatings for odor-control in incontinence pads for the long-term care and other healthcare markets.

The two-year contract, valued at $1 million, is Vanson HaloSource’s second licensing deal with Medline, the nation’s largest privately owned medical supply company.

By integrating HaloShield technology into its incontinence pad products, Medline will offer the market a completely new approach to odor prevention.  HaloShield, a durable, renewable coating that is completely inert, binds chlorine molecules from chlorine-based sanitizers to nearly any surface or textile, prolonging its ability to kill odor and protect the surface.

“Combining HaloShield technology with quality Medline incontinence pads marks an entirely new era for odor-control methods in nursing homes and long-term care facilities,” said Ron Barth, president of Medline’s Medcrest textiles division.  “The technology gives our customers an unprecedented solution – the ability to harness and extend chlorine’s proven antimicrobial power – to finally eliminate the odors that have permeated facilities for decades.”

When incontinence pads – absorbent material placed on top of bed linens – become soiled, bacteria build up and convert urea in urine into ammonia, which causes unpleasant odors. Current prevention and control methods try to mask odors or neutralize substances in the urine with limited results.

In contrast, HaloShield coating binds chlorine molecules directly to the fibers of the pad, enabling the chlorine to kill embedded bacteria and other microbes before they begin to cause odor.

According to Vanson HaloSource, each HaloShield-treated pad retains its ability to attract and bind chlorine between regular launderings, and the full effect of the chlorine is renewed each time an article is washed using chlorine-based bleach sanitizer.

John Kaestle, Vanson HaloSource’s CEO, said deploying HaloShield in incontinence pads not only helps with odor control, but the chlorine it attracts and holds also can help improve the sanitation and hygiene in these institutions.

"Conventional fabrics laundered with chlorine bleach might be clean as they swirl in the spin cycle of your washer, but they lose their ability to kill contaminants as soon as they leave the machine," Kaestle said.  "HaloShield acts like Velcro®, attracting chlorine molecules and locking them in place until the chlorine kills the microbe.  One highlight of HaloShield is that simply laundering the treated incontinence pad in common chlorine bleach – customary procedure in nursing homes – renews its effects."

Rigorous laboratory and field tests have shown that HaloShield is non-irritating and safe for sensitive skin, even when applied to fabric worn or slept in on a daily basis.

The terms of the contract grant Medline rights to use HaloShield in incontinence pads for North and South America.  Medline plans to roll out the incontinence pads in mid-July.

In 2003, Medline signed a deal with Vanson HaloSource to license HaloShield for hospital sheets, pillowcases, scrubs and gowns. Medline plans to release these products into hospitals throughout the U.S. in the second quarter of 2004.

Medline’s Barth said that the company’s positive results with hospital linens prompted them to deploy HaloShield technology in the incontinence pads.

“The excitement here is really building as we near our launch date for the HaloShield-treated sheets, scrubs and other linens,” Barth said.  “Now, with another viable HaloShield product in the pipeline, we are set to revolutionize the long-term care market, as well.”

In addition to incorporating HaloShield into textiles and non-wovens, Vanson HaloSource licenses the technology for hard surfaces, paints and other applications in a range of industries.

About Vanson HaloSource
Vanson HaloSource employs bioscience technologies to create innovative solutions that enhance life for customers in the water treatment and purification, biomedical, healthcare, manufacturing, and consumer markets.  The Redmond, Wash.-based company markets sophisticated applications based on its N-halamine technologies and chitosan formulations.  Its hygienic coatings harness chlorine to surfaces and textiles to purify water and improve sanitation healthcare settings, homes, and other environments.  Vanson HaloSource also manufactures a range of chitosan-based products to the pool and spa, water treatment and biomedical industries. The company investors include Alexander Hutton Venture Partners, Buerk Dale Victor LLC, and Britannia Holdings along with other institutional and private investors.  More information is available at www.vanson.com.

About Medline
Medline is ISO 13485 registered and FDA QSR compliant, the most stringent international standards for producing quality products.  As a leading supplier of quality products, Medline is asked to serve on major industry quality committees to develop guidelines and standards for medical product use.  Some of these organizations include the FDA Midwest Steering Committee, AAMI Sterilization and Packaging Committee and the various ASTM committees.

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