May 2013

Sterilmed and Biosense Webster launch Sound Choice

Unique partnership offers customers new options
We are extremely excited to announce a new partnership between two world -class organizations within the Johnson & Johnson family of companies, Biosense Webster and Sterilmed. Through tremendous collaboration over the past year, a cross -functional team including associates from both operating companies has developed a new solution for our customers in the EP Lab. Our unique partnership will deliver superior product quality, best-in-class service and cost savings all while protecting the environment. The solution represents the reprocessing component of the overall Biosense Webster Sound Choice strategy. Biosense Webster will now be the exclusive provider of Biosense Webster Ultrasound Catheters for Johnson & Johnson, offering both new and certified reprocessed ultrasound catheters to our customers. We will start approaching customers with the program under a combined field based effort on May 13. Starting July 1, customers will begin purchasing their SoundStar and AcuNav ultrasound catheters through Biosense Webster. Sterilmed on-site-technicians will establish and perform collections support for all customers who choose to participate in the program. For ultrasound catheters, this means customers will have a single point of ordering, a single invoice and access to clinical support. This approach helps Sterilmed deliver on one of our strategic priorities; making it easier for our customers to do business with us. Lets take a closer look Superior Product Quality Under Sound Choice, we will be certifying reprocessed ultrasound catheters from Sterilmed. Certified? Thats right, through our partnership; we have added proprietary test equipment to our manufacturing process allowing Sterilmed to validate the navigational accuracy and visual acuity of the SoundStar and AcuNav Ultrasound Catheters. The result of the additional testing is the certified designation for our reprocessed catheters. This is a true differentiator for our products and provides a meaningful and sustainable competitive advantage. Best-in-Class Service Biosense Webster will now deliver technical and clinical support for both new and certified reprocessed SoundStar and AcuNav Ultrasound Catheters. Today, the Biosense Webster team does not directly support clinical cases where reprocessed ultrasound catheters are Continued on next page

AcuNav ultrasound catheter

Sterilmed welcomes Jack Ayer as VP of Sales

Industry veteran brings 20+ years of experience
We are pleased to welcome Jack Ayers to Sterilmed as our Vice President of Sales. Jack began his career in medical device sales at Ethicon Endo Surgery in 1991. He held several positions of increasing leadership at both Ethicon and Biosense Webster, most recently as Sr. Area Sales Director for Biosense Webster. In this position he led the West Area field team and was also responsible for leadership development for the entire U.S. field organization. Jacks experience, leadership and track record of success uniquely qualify him to lead our field sales organization, commented Sterilmed Worldwide President Mike Gustafson. Jack will join the Sterilmed Management Board and Commercial Leadership team immediately and will be fully transitioned to his new role by June 3rd.

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Continued from front page used - this will change under the program. Customers have told us this support is highly valued, so this is another significant differentiator for us. Our on -site-technicians will provide industry leading collections support and in-service education to help our customers create and maintain effective programs that maximize their savings opportunity. Cost Savings and Environmental Sustainability Under the program, participating customers will be able to purchase up to two (2) certified reprocessed catheters for each new device purchased. Thats up to 66% of their total ultrasound catheter purchases to maximize cost savings! This mix will help all of our customers achieve predictable and sustainable cost savings over time. Of course, all of this happens in an environmentally friendly way. A Great Opportunity! Delivering a Win -Win-Win The Sound Choice is a customer centric solution that presents a tremendous opportunity for both Johnson & Johnson operating companies! For Biosense Webster, the market share leader in ultrasound catheters, it provides the total value proposition they need to win share against all of our competitors in the space. More than 85 percent of all ultrasound catheters in the market are new or reprocessed Biosense Webster SoundStar and AcuNav products. With 75 percent of the reprocessed catheters currently coming from our competitors, this solution positions Johnson & Johnson very well to effectively compete for that business. For Sterilmed, the program provides tremendous opportunity to establish a presence in hospitals currently served by our competitors; and then demonstrate our differentiated value proposition. By starting in the Electrophysiology or EP Lab, our field sales and service teams will be able to win competitive reprocessed diagnostic catheter business and then expand into other areas of the hospital. The program will help us grow our business in general care areas of the hospital and in the operating room, while helping our customers meet and exceed their savings objectives through a comprehensive reprocessing program. All of this leads to a WIN-WIN-WIN A win for our customers, a win for Sterilmed, Biosense Webster, and Johnson & Johnson. And finally, a win for the environment. Stay tuned for updates as we roll out this exciting new program. Simple solutions. Proven results!

SoundStar ultrasound catheter

Sterilmed introduces updated Vision and Mission

An internal cross-functional team has been working to update the Sterilmed Vision and Mission Statement so they better reflect our organizational goals (both short and long term). After much discussion and several iterations, the team proposed updated versions of both to the Sterilmed Management Board. Our new Sterilmed Vision and Mission Statement are below:

Our Vision To be the global leader in delivering economic and environmental healthcare solutions.
Communicate Openly

Our Mission As experts in economic and environmental sustainability, Sterilmed delivers simple solutions with proven results. We work with healthcare providers to improve the accessibility and affordability of quality care for patients around the world.

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Sterilmed reveals new look on public website

Visitors to www.sterilmed.com will soon experience an entirely new look and feel as the website rebrands with the updated Sterilmed logo and color palette. While the new look will be immediately noticeable, its not the only thing changing. Site content, navigation, usability, and access to information are also improved. Whether a visitor is searching for information about reprocessing in general or accessing account-specific information these upgrades will make it easier to do business with us. Additional improvements and upgrades are scheduled for later this year; the most notable being the ability to view inventory levels and order product directly via the website. Other key features will include a live customer chat option, downloadable real-time reports, device search capability, a video library, and a new resource center for our customers. As we continue to look for additional ways to deliver on our value proposition, the website will be a key asset. Interested in learning more about the new www.sterilmed.com? Contact Brady Borkoski in marketing.

New reprocessing posters now available

At the request of customers and the field sales organization, we have updated our collection posters to feature larger images and less text. Most importantly, the new branded posters allow for more device grouping options and account customization. Each poster requires a base template as well as a combination of two small device stickers or one large device sticker; dependent upon needs. For example, you could have one poster for both pulse ox AND sleeve collections by utilizing one small sticker of each. If you only need to collect one device, the larger device sticker at the bottom of each sheet should be used.

Trocar only Poster

Easy Collect Poster

Pulse ox and Sleeves Poster

Upgraded trocar packaging well received

Sterilmed recently launched upgraded trocar packaging, and customer response has been favorable. The new packaging more closely resembles the original manufacturer package and includes easy to read labeling and Sterilmed branding. Molded trays and Tyvek lids better protect the trocar from damage and the single sterile barrier tray with lid means the trocar can easily be transferred into the sterile field. This is a win for our customers, we responded to their feedback and made changes that will make it easier to do business with us. New packaging will be introduced as existing inventory is depleted. This is the first phase of our improved packaging roll-out. Watch for more updates throughout 2013. In other product news, Sterilmed launched the reprocessed Ethicon ENDOPATH XCEL Bladeless Trocar Model B12LT in April. This addition to our line of high -quality reprocessed endoscopic trocars further broadens our product offerings and gives our customers an additional opportunity to reduce device costs without compromising patient care.

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New video showcases the science of reprocessing

The new Sterilmed Site Tour Video will be introduced to the company, along with training for the field sales organization, during a webinar later this month. The video takes viewers on a virtual tour of our manufacturing processes, showcasing how Sterilmeds single -use device (SUD) reprocessing program is safe and effective. The video covers why SUD reprocessing is important to healthcare facilities, what SUD reprocessing is, how it works, the difference between hospital and third-party reprocessing, and the science and technology that surround our processes. The video includes interviews with Mike Gustafson, Bruce Lester, Jeff Neichin, Nicole Boser, and Felton Range. The main video, which provides an overview of the processes all devices go through once received at Sterilmed, is approximately nine minutes in length. For device specific needs, seven individual modules were created (about 2 minutes each) that take an in-depth look at the processes and functional testing done for: ortho and ENT shavers, trocars, clip appliers, harmonic scalpels, diagnostic EP catheters, imaging catheters, and endo shears. A big thank you to everyone in production who cordially cooperated during multiple days of filming, to Dan Kammann and his team for the wealth of knowledge and expertise they contributed to this project, to our on-camera personalities for vocalizing what makes Sterilmed so special and to everyone in the field for your patience while we developed this tool. Kudos to Mackenzie Childress for successfully leading this important project.

Sterilmed receives Champion for Change Award

Company honored at annual CleanMed Conference
Practice Greenhealth, the national membership organization for healthcare facilities committed to environmentally responsible operations, presented its 2013 Champion for Change Award to Sterilmed. This is the third year in a row that Sterilmed was recognized for outstanding contributions to environmentally responsible healthcare. The award was presented on April 25th in Boston, in conjunction with the annual CleanMed Conference. The Champion for Change Award recognizes businesses and organizations that demonstrate successful accomplishments in greening their own organization and/or assisting their healthcare facility customers in improving their environmental performance. CleanMed is the premier global conference on environmentally sustainable healthcare. This years conference was co-sponsored by Sterilmed and Johnson & Johnson and attracted more than 800 attendees from across the country. Sterilmed unveiled its Solutions Center, an enclosed booth within our exhibit booth where conference attendees could meet with Sterilmed representatives and learn more about our unique approach to implementing a successful and sustainable reprocessing program at their facility. Sterilmed also sponsored a panel discussion, Reprocessing and Supply Chain Management, as part of the conference educational sessions.

L to R: Kristy Deike, Laura Wenger (Practice GreenHealth), Keith Hoof, and Laura Gau with 2013 Champion for Change Award.

LifeScience Alleyget involved and network with peers

Sterilmed is a proud member of LifeScience Alley, which is dedicated to providing access to advocating, educating, creating connections and cultivating innovation. LifeScience Alley, a Minnesota-based trade association serving over 680 member organizations, provides access to industry leaders, education and networking opportunities, insights into current trends, regulations, research and emerging technologies, and the power of a legislative voice. LifeScience Alley offer a wide variety of programs to enhance education, leadership, networking, and training. Some of the programs are available at a discounted price while others are offered free of charge. This is a great opportunity to get involved in a professional organization and network with peers in the medical device and life sciences industry. All Sterilmed associates are members through our organization, for more information please visit Life Science Alley at www.LifeScienceAlley.org. FOR STERILMED INTERNAL USE ONLYDO NOT DISTRIBUTE

Meet our new Sales Advisory Committee

The Sterilmed Sales Advisory Committee (SAC) meets several times throughout the year to discuss critical business opportunities and issues affecting our field sales team. The group serves as the voice of the customer and acts as a conduit between sales and HQ when developing new programs. The SAC is comprised of account managers and regional business directors from across the country. Recently installed SAC members include: Steven Lee (South East Region), Craig Ferguson (Western Region), Jill Imber (Central Region), Roy Gove (North Central Region), Rocky Nordquist (National Accounts), Brian Sivertson (Midwest Region), Mark Muller (North East Region), and Mike Pavesi (North East Region). Julie Smith, Director of Sales Operations, also serves on the Sales Advisory Committee. Sterilmed associates are encouraged to reach out to any of the SAC members with ideas, concerns or questions related to their work.

Sales and Field Service teams deliver key customer wins

April was a productive month as both our field sales and national accounts teams landed new and additional business at accounts across the country. Recent wins include: Indiana University Health Park Nicollet Health System Univ. of Pittsburgh Medical Center Ochsner (8 hospitals) Pomona Valley Hospital Catholic Health Services of Long Island Indianapolis, IN Minneapolis, MN Pittsburgh, PA New Orleans, LA Pomona, CA Long Island, NY Leslie Blake Tom Tallman Leslie Blake Angie Jacobskind Angie Jacobskind Rocky Nordquist

Gauge & Go building series of success stories

Our Gauge & Go implementation process continues to gain traction and chalk up wins as account managers across the country apply the principles of strategic selling to build and strengthen customer relationships. One of our latest Gauge & Go success stories involves Park Nicollet Hospital in Minneapolis, Minnesota. Sterilmed account manager Tom Tallman, with an assist from the Ethicon Surgical Care district manager, was able to convert this S3 customer to Sterilmed. Working with Park Nicollets senior buyer, Tom identified all the buying influencers and uncovered several concerns among them. He was then able to address each concern and convince each of the buying influencers that Sterilmeds approach would meet their needs and create a successful and sustainable single -use device reprocessing program. The hospitals Value Analysis Committee voted unanimously to move their reprocessing business to Sterilmed. Tom followed the established Gauge & Go process and formed a Client Advisory Teamengaging the right people, focused on the right things. A thorough review of the dynamic elements (Use, Collect, Supply) was conducted to determine how best to incorporate Sterilmed into each element, and then how to influence that element for continued growth and success. The process didnt happen overnight...carefully executing each step in the Strategic Selling/Gauge & Go process takes time. Sterilmed launched collections in the Park Nicollet OR approximately two months after receiving notice from the hospital that the facility would be switching to Sterilmed. Tom did it right, and his patience and attention to detail has already paid dividends. The initial goal for the OR was $90,000, but it was quickly increased to $150,000 once the customer experienced the quality products and processes Sterilmed provides. The account logged nearly $19,000 in savings in the first month post implementation! Congrats to Tom Tallman for a great Gauge & Go win!

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Field Services restructures to better serve customers

Streamlined organization focused on strategic priorities
Sterilmeds Field Services organization recently restructured to more effectively meet customer needs, deliver on our Value Proposition, and achieve our strategic priorities. The new organization includes fewer management layers, allowing for faster decision making and strategy execution. This more streamlined approach will facilitate a closer working relationship between field service and sales that will help drive penetration at existing customer accounts. The Field Service Leadership Team now consists of six field service directors and four territory service managers in addition to VP of Service Operations Tom Schlick. This team will lead the nearly 400 member field service organization as it works to make it easier for our customers to do business with Sterilmed. The leadership team will also focus on developing our next generation of service leaders and subject matter experts. I am very pleased with the field service leadership team now in place and look forward to working closely with them to build our capabilities and provide outstanding service to our customers, said Schlick. Field Service Directors Carmela MartinEast (2) Rebecka SolarSoutheast (4) Jeff FieldsNorth Central (5) Kelly CrockerMidwest (6) OPENCentral (9) Cindy BjerkeWest (10) Territory Service Managers Dan FaivreNortheast (1) Nicole MillerAtlantic Cindy HoltketterGreat Plains (7) OPENNorthwest (8)

Cultural Values in action

Great examples of our Cultural Values in action happen every day across the company. Heres one recent story: Rocky Nordquist was able to maintain our current Catholic Health Services of Long Island (CHSLI) contracted business without having it go out for bid. This was due to the great relationship he has built with Margaret Fischer, Asst. VP Clinical Resources, CHS Supply Chain over the past three years. Margaret informed Rocky that their Executive Teams policy required going through an RFP process every three years. Rocky convinced her to avoid this process and extend with Sterilmed - with no special pricing exceptions! Helping his cause was the fact that Mike Pavesi, David Blank and Travis Rogers have provided outstanding professional service. We are about to restart OR Boost implementation programs at CHSLI and the business should exceed $1 million soon. Great job Rocky, Mike, David and Travis. This is a great example of how Communicate Openly, Connect Intentionally and Commit to Excellence can lead to Celebrate Success! Submitted by Mike Richardson, April 25, 2013 Share your Cultural Values Experience! When one of your colleagues provides a shining example of representing our Cultural Values, we want to hear about it! Go to The Core (Sterilmed intranet) and click on Cultural Values to share your story. Culture related ideas, feedback, questions? Contact the Sterilmed Culture Team at [email protected]

Our Sterilmed Cultural Values belong to each and every one of us. Take accountability and cause our desired culture to become a reality. -Mike Gustafson

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Upcoming Events
May 2 May 7 May 14 May 23 May 30 Jersey City Medical Clinic TRIA Orthopedic Center UW Hospital & Clinic Haut Richelieu Hospital Ohio Health Jersey City, NJ Bloomington, MN Madison, WI Quebec, Canada Columbus, OH Site Tour Maple Grove, MN Site Tour Maple Grove, MN Site Tour Maple Grove, MN Site Tour Maple Grove, MN Site Tour Maple Grove, MN

Production, Distribution, Receiving training excellence

Sterilmed is committed to providing the training each associate needs to develop subject matter expertise in their work area. The trainers listed below achieved a 100 percent pass rate in March and/or April. Congratulations on your effective leadership, keep up the great work! Allen Lee Amber Anderson Augustine Dunan Bea Moua Beverly Perron Bradley Jenkins Chee Vang Chris Harter Corey Cepeda Cynthia Perron Darin Lorentz Denise McLemore Dennis Bonuke Desirae Schillawaert Egya Morkeh Eva Carlberg Evan Glosser Grace Flomer Gweseh Ngungkpan Jeffrey Mennenga John Leaks Joseph Bravo Karen Kraeuche Keita Jones Keneh Wemba Keng Vang Kenneth Kibe Lue Vang Marlene McCoy Marty Khamsot Matthew Hager Minlibe Bandaguine Moses Isaboke Moua Vang Nathan Onyiego Rodney Smith Russell Asell Sarah Gadogbe Sean Kelly Solay Ly Steven Kpasie Surangrat Zuan Tim Harris Tina Moua Tyler Damico Xay Xiong

Commit to Excellence

The work is right when it leaves my area.

Welcome April New Hires

Kayode Awobajo, Distribution Associate Bryan Buckert, On-Site Technician Kevin Cleary, Regional Business Director Angela College, Device Decontam Bethany Collins, Sleeve Inspection Jennifer Goodman, On -Site Technician Priscilla Hopwood, On-Site Technician Allison Larson, On-Site Technician Orel Kitio, Receiving Edwin Nyamongo, Sleeve Decontam Cassandra Paugh, On-Site Technician Michael Rance, Distribution Christopher Riley, Device Decontam Sylvia Rogito, Device Decontam Johnny Smith, On-Site Technician Daniel Snoweah, Distribution Jack Ayer, Vice President of Sales Christine Fischer, Director of Training & Development

Connect Intentionally

April Promotions
Vishal Punsammy Device Decontam Trainer Protus Matara Device Decontam Lead Robert ChiePulse Ox Trainer Sierra HoodDevice Decontam Lead Ronney Bongomin Device Decontam Trainer

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Happy Anniversary! Thank you for your service.

16 years Rocky Nordquist, Corp Accounts Director 12 years Teresa Dondelinger, IT Team Lead Terry Phetsomphou, JR Sharpening Tech 11 years Keith Miller, Research Lab Supervisor 10 years Arie Boers, Principal Engineer Dani Peterson, Financial Analyst 8 years Jared Eames, Sr. Account Manager Doyen Kofa, CAD Sorter Luis Mejia, Receiving Trainer Sopheak Ok, Sharpening Technician Syphan Phonesavanh, Sharpening Tech Candice Cox, Staff Accountant 7 years Craig Robinson, On-Site Technician 6 years Thomas Phelps, Corp Training Coord Rebecka Solar, Field Service Director Rebecca Lamb, On-Site Technician Victoria White, On-Site Technician Jacqueline Lyons, On-Site Technician Jill Tilden, On-Site Technician 5 years Judith Oirere, Catheter Inspector Solomon Yonkendeh, Distribution Yeimi Andrade, On-Site Technician 4 years David Jones, On-Site Technician Jonathan Castonguay, Red Inspector Khammay Khamsot, Receiving Lead Yelena Koop, Receiving Lead 3 years Lue Vang, Red Inspection Maria Darkey, Data Entry Specialist Jeffrey Quinitchette, On-Site Technician Larry Daovong, Pulse Ox Lead LeeAnn Norton, Red Inspection Colleen Bronson, Sleeve Decontam Michael Buntzen, Sealing Karen Kraeuche, Sleeve Inspection Trainer Jessica Napurski, Device Decontam Souksavanh Siharath, QA Technician 2 years Eva Carlberg, Sleeve Inspection Trainer Nicole Miller, Territory Service Manager Pamela Crowder, On-Site Technician Bonnie Lainhart, On-Site Technician Anton Roettenbacher, Account Manager Oluseye Adenusi, CAD Sorter Mary Hustad, Sleeve Inspection Billy Jacobsen, Material Handler Linet Tingwe, Red Inspector Tu Yang, Device Marker Toni Bradley, Executive Admin Asst Harriet Raines, On-Site Technician Amy Shirley, On-Site Technician 1 year Margo White, On-Site Technician Amy Harper, Account Manager Brett Alwine, envir. Health & Safety Jennifer Magruder, On-Site Technician Chelsea Poe, On-Site Technician Donna Zalusky, On-Site Technician Michele Meyers, On-Site Technician Stephen Ward, On-Site Technician Matthew Hager, Distribution Pheng Yang, Pulse Ox Justin Kuhr, Sleeve Inspection Kermee Lor, Sleeve Inspection Solay Ly, Distribution Brian Maharaj, Sleeve Inspection Emily Nyakundi, Sleeve Inspection Mark Olmstead, On-Site Technician Adam Purcell, Sleeve Inspection

Celebrate Success

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