In January of 2006 The ALARIS Group, Inc. ^®

determined that a strategic initiative for growth would be to replicate it's business model and offer to sell franchises to those interested in establishing a case management business. A new company, ALARIS Advantage was founded for this purpose. The foundation for this new business venture is the brand identity that ALARIS has created over the years along with its proprietary software program, ALARISware. In conjunction with legal counsel, a franchise offering circular was developed that outlines goals and objectives of the new franchise operation along with requirements for the franchisor and interested buyers.

The first step in the franchise purchase process is the completion of a formal application along with a personal financial statement. A background check is completed and a determination made as to the viability of the application. Candidates who submit a viable application will be contacted to arrange for an in person meeting to disclose and review the offering circular and franchise agreement. Interested candidates then have the option to review and consider the circular and agreement in depth; it is recommended that a legal review is obtained. If after reviewing the documents a decision is made to move forward to purchase a franchise, the franchise agreement is signed and returned. ALARIS Advantage will grant the new owners a specific territory to work within and work collaboratively to establish a credible timeline for getting the new operation up and running.

The franchise business is heavily regulated, there are laws on the federal level that must be followed and many states have franchise laws that must be followed as well. In some instances a lengthy state application process must be completed before the sale of a franchise can take place. ALARIS Advantage will let any interested buyers know if state regulations exist that will affect their purchase of a franchise. If that is the case, the application process may be significantly delayed while state approval is sought.

Franchises vary a great deal according to the type of business the franchise operates within. ALARIS Advantage will allow its franchises to operate under the ALARIS brand, will provide its franchises with the ALARISware software program, and will provide training and support on the business practices and methodologies that have been employed over the years. Franchisees of ALARIS Advantage will pay an initial territory fee, ongoing software user fees, and royalties on sales.

The decision to sell franchises has not been entered into lightly; a great deal of work and capital investment has gone into making this a viable business model. We at ALARIS believe in what we do and seek to share our accomplishments and successes with others who share our same values. Our expectations are high but the brand identity we have created demands that. If you believe that you have the right stuff and would like to break free from your current situation contact either Chris Delich at chris.delich@alarisgroup.com or Nancy Caven at nancy.caven@alarisgroup.com for more information.