LAKE FOREST, Calif.--(BUSINESS WIRE)--Aug. 10, 2004--

   I-Flow Establishes Relationship with MedAssets to Promote ON-Q's
            Significantly Better Post-Surgical Pain Relief

I-Flow Corporation (NASDAQ: IFLO) announced today that it has been awarded a contract by MedAssets, the fastest-growing group purchasing organization (GPO) and supply chain management company in the United States, representing a network of more than 22,000 healthcare providers, including acute care and alternate site facilities. With this agreement, MedAssets will offer ON-Q(R) PainBuster(R), a narcotic-free surgical-site pain relief system, to its member facilities, including hospitals and ambulatory surgery centers.

"Our member organizations rely on us to offer technologies that will help them provide exemplary patient care," said Marta White, Director, Ambulatory Surgery & Clinical Services of MedAssets. "I-Flow's clinical research shows that ON-Q PainBuster helps improve patient outcomes, provides better pain relief, and most importantly helps patients return to normal faster. Our member-driven review process concluded that ON-Q is a beneficial solution to post-surgical pain relief for our members to provide to their patients."

ON-Q recently received enhanced indications for use from the U.S. Food and Drug Administration (FDA) and it is now labeled to provide significantly better pain relief than narcotics alone and significantly less need for narcotics after surgery. Studies have shown that ON-Q PainBuster relieves pain after surgery and reduces or eliminates the need for narcotics, today's standard of care, so hospital stays are shortened and cost savings are realized.

"MedAssets represents a broad network of the largest healthcare providers in the country and with this agreement I-Flow will be increasing its reach into these centers with direct access to decision-makers," said Donald M. Earhart, president and CEO of I-Flow Corporation. "This relationship will dramatically increase the number of patients that have access to ON-Q PainBuster, and the number of procedures for which the device can be used. We look forward to directing our hospital sales force to work with member hospitals and our ambulatory surgery center (ASC) sales force to introduce the ON-Q (third party) Billing program to member ASC's, which include several large, nationally-recognized ambulatory surgery center groups. This agreement will create new selling opportunities for ON-Q PainBuster and a chance to 'jump start' the third party billing program."

About ON-Q PainBuster

ON-Q is now labeled to significantly reduce pain and narcotics intake after surgery. The ON-Q PainBuster is a simple yet elegant device that consists of a small balloon pump that holds a local anesthetic (a pain-numbing medicine) and delivers it through a tiny, specially-designed tube (catheter) directly into the surgical site. The proprietary ON-Q Soaker(TM) Catheter is designed to provide more even distribution of local anesthetic over a wider area, as compared to other catheters, because of its patented wicking capabilities.

ON-Q PainBuster delivers narcotic-free pain relief for many surgeries, including: cesarean section, hysterectomy, knee replacement, mastectomy, cardio-vascular/thoracic, foot and ankle and many cosmetic procedures. ON-Q PainBuster helps patients avoid the side effects of narcotics so they can get back to their normal lives faster. Currently, 30 studies on the use of ON-Q have been completed and published and more are underway to demonstrate the benefits of ON-Q in additional areas such as pediatrics and wound healing.

For more information about ON-Q, visit AskYourSurgeon.com or call 800-448-3569.

About MedAssets

MedAssets, headquartered in Atlanta, Georgia, improves healthcare providers' margin and cash flow through revenue cycle and supply chain initiatives. As a strategic business partner, MedAssets can replace multiple vendors and decrease supply costs by 3-10 % and increase net patient revenue by 1-3 %. Proprietary information technology is used to work with and improve existing IT assets and work processes. MedAssets, through its revenue cycle subsidiary MedAssets Net Revenue Systems, provides best-of-breed revenue solutions including strategic pricing, pre-bill charge capturing, and ongoing chargemaster management tools. MedAssets, through its supply chain subsidiary, operates the fastest growing group purchasing organization and supply chain services company in the U.S. and builds customized solutions encompassing procurement of common medical supplies, pharmaceuticals, physician preference supplies, and capital equipment.

MedAssets serves more than 22,000 healthcare providers nationwide through its revenue cycle and supply chain operations including Atlantic Health System (New Jersey), Banner Health (Arizona), Bon Secours Health System (Maryland), Charleston Area Medical Center (West Virginia), Christiana Care Health System (Delaware), Inova Health System (Virginia), Main Line Health (Pennsylvania), North Mississippi Health Services, Rush System for Health (Illinois), St. Joseph Health System (California), Saint Barnabas Health Care System (New Jersey), The University of North Carolina Health Care System, University Hospitals Health System (Ohio), University of Pittsburgh Medical Center (Pennsylvania), University of Rochester Medical Center (New York), and many others. For more information about MedAssets go to www.medassets.com or contact Gary Johnson, vice president of Marketing and Marketing Services, 100 North Point Center East, Suite 200, Alpharetta, GA 30022

About I-Flow Corporation

I-Flow Corporation (www.iflo.com) designs, develops and markets technically advanced, low-cost drug delivery systems and services that are redefining the standard of care by providing life-enhancing, cost-effective solutions for pain relief.

Certain disclosures made by the Company in this press release and in other reports and statements released by the Company are and will be forward-looking in nature, such as comments that express the Company's opinions about trends and factors that may impact future operating results. Disclosures that use words such as the Company "believes," "anticipates," or "expects" or use similar expressions are intended to identify forward-looking statements. Forward-looking statements are subject to certain risks and uncertainties, which could cause actual results to differ from those expected, and readers are cautioned not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to republish revised forward-looking statements to reflect the occurrence of unanticipated events. Readers are also urged to carefully review and consider the various disclosures made by the Company in this release which seek to advise interested parties of the risks and other factors that affect the Company's business, as well as in the Company's periodic reports on Forms 10-K, 10-Q, and 8-K filed with the Securities and Exchange Commission. The risks affecting the Company's business include, among others: implementation of our direct sales strategy; dependence on our suppliers and distributors; reliance on the success of the home health care industry; our continuing compliance with applicable laws and regulations, such as the Food Drug and Cosmetics Act, and the FDA's concurrence with our management's subjective judgment on compliance issues; the reimbursement system currently in place and future changes to that system; competition in the industry; economic and political conditions in foreign countries; currency exchange rates; inadequacy of booked reserves; technological changes and product availability and acceptance. All such forward-looking statements, whether made in this release or elsewhere, should be considered in context with the various disclosures made by the Company about its business.

    CONTACT: Schwartz Communications
             Wendy Williams or Michele Saltzberg, 781-684-0770
             iflo@schwartz-pr.com
             or
             I-Flow Corporation
             Orlando Rodrigues, 949-206-2619
             orlandorodrigues@iflo.com
             or
             Trone Atlanta
             Rick Toller, 404-266-0899
             rtoller@trone.com

    SOURCE: I-Flow Corporation