Graham-Field signs exclusive distribution deal

September 22, 2003 JACKSONVILLE, Fla. & ATLANTA - Gulf South Medical Supply and Graham Field Health Products have formed an exclusive five-year distribution alliance to serve the home health and long-term care markets in the United States. The new agreement enables Gulf South to be the exclusive and sole distributor of Graham Field products sold in the United States, including product brands Lumex and Everest & Jennings. Gulf South will inventory the top 200 Graham Field products, as measured by sales, in 12 distribution centers across the country. The new distribution alliance is expected to generate $20 million to $25 million in annual revenue in its first twelve months of operation. Tony Oglesby, president of Gulf South Medical Supply, commented, "By combining the product experience of Graham Field with Gulf South's expertise in distribution services, we will be able to serve the needs of our customers with a single, reliable source for high quality products. The Graham Field brands of Lumex and Everest & Jennings are very well established brands in the home health and elder care markets. This alliance will enable us to offer almost every name brand product a homecare provider needs, from durable medical equipment to nutritionals and disposables." Irwin Selinger, president and CEO of Graham Field, added, "Our homecare customers have been asking us for reliable next day delivery, combined with competitive pricing since I started in this business over 20 years ago. This strategic alliance gives our customers what they need to run their business more efficiently and profitably, that is, competitively priced name brand products with a distribution system that can reach 92 percent of the country the next day." As part of the agreement, a dedicated homecare market sales force has been formed to focus on homecare providers. Combined with an inside telesales group, this dedicated sales team will be responsible for sales and service to homecare providers. Gulf South's more than 100 person sales team, augmented with 15 Graham Field Equipment Specialists, will provide sales and service to the long-term care market. Over the next several weeks, customers of Graham Field and Gulf South will be mailed the new combined catalog and other information relating to the agreement.