Statement and Facts Regarding Health Robotics’ June 25, 2012 News Release

Posted on June 25, 2012

Statement and Facts Regarding Health Robotics’ June 25, 2012 News Release

In June, Italian company Health Robotics issued a news release announcing the sale of its
i.v.Station to two Canadian hospitals, Regina General Hospital and Pasqua Hospital, both in
Regina, Saskatchewan. The news release contained a substantial amount of inaccurate, if not
completely false, information that was disparaging to Intelligent Hospital Systems (IH Systems)
and our product RIVA (Robotic IV Automation). During subsequent investigation by IH
Systems, the regional health authority that oversees the two hospitals, as well as Health
Robotics’ Canadian distributor, Sandoz Canada, strongly distanced themselves from the
misinformation and insinuation in the news release. Sandoz subsequently asked Health Robotics
to remove the release from its website. While counsel for IH Systems is working to resolve the
issue without litigation, we feel it is important for our existing and potential clients to understand
the facts of this case, as well as the technological applications that distinguish RIVA from its
competitors. The information below provides those facts.

Health Robotics claimed: i.v.Station “beat” RIVA in a public tender (competitive bid) process
both at Regina General Hospital and Pasqua Hospital.

The facts: This is not true. There was no public tender or competitive bid. The Regina
Qu’Appelle Health Region, the health authority that operates both Regina General Hospital and
Pasqua Hospital, decided to purchase Health Robotics’ product for the two hospitals without a
competitive bid process or tender. Government procurement policy required the authority to
publicly announce its intention to buy the Health Robotics units by issuing an Advanced
Contract Award Notice (ACAN). This was a procurement decision by one authority. It would be
false to suggest the two hospitals each made an independent decision to purchase Health
Robotics’ products after a competitive bid process.

Health Robotics claimed: IH Systems has tried to stop hospitals from choosing Health Robotics’
product through legal protests, and also appealed the public tender process for the Regina
Qu’Appelle Health Region acquisition and lost.

The facts: This is false. There was no call for bids, there was no appeal of any process and there
was no legal protest. The Advanced Contract Award Notice (ACAN) invited potential vendors
to submit information about their products, which IH Systems did. This was not a protest or
legal proceeding, but the normal process for an ACAN. We were subsequently informed that
RIVA did not meet the specific requirements for this purchase, due in part to its larger size
(RIVA features a fully-enclosed, sterile environment). Further, IH Systems have never resorted
to legal means in an attempt to undermine fair market competition.

Health Robotics claimed: RIVA’s technology is “outdated,” “obsolete” and “timeworn,” and the
product requires “fixing.”

The facts: These claims are false and especially interesting considering that RIVA uses the same
fundamental technology as i.v.Station. However, it is the application of that technology that
differentiates RIVA. Further, IH Systems has been granted numerous patents on advancements it
has made to the technology. In fact, RIVA has undergone substantial enhancements every year
since commercial introduction and has significantly grown in functionality, stability and
capability. Our existing customer base shows a RIVA uptime and availability of greater than 95
percent. As of September 2012, RIVA systems globally have produced more than one million
patient doses without error. As a result of continual engineering and design enhancements,
RIVA’s technology can accurately be described as state-of-art, if not cutting edge.
Health Robotics claimed: RIVA has been available to the Canadian market for more than 20
years with no competition.

The facts: This is false. IH Systems was formed in 2006, and the first version of RIVA became
commercially available in 2008. Health Robotics products have been marketed in Canada since
the early-2000s.
Health Robotics claimed: Two robots sold by IH Systems in Canada have not become
operational for two-and-a-half years.

The facts: This claim is misleading. IH Systems issued a press release about the sale of a RIVA
to Royal Victoria Hospital in Barrie, Ont., in January 2010. However, the system was not
delivered until June 2011 and was installed in a new facility that was under construction, with a
planned opening in 2012. Construction delays for the facility, which were unrelated to the RIVA
system, resulted in a later start of operations. However, the new pharmacy is now complete and
training is underway. Princess Margaret Hospital in Toronto took delivery of a RIVA unit in
February 2012 which is now live. Neither of these installations took place more than two-and-ahalf
years ago, as Health Robotics falsely stated.

Health Robotics claimed: IH Systems has attempted to market RIVA by offering incentives and
compensation to hospital pharmacists.

The facts: This is false. IH Systems encourages potential customers to perform full duediligence
on the various IV automation options prior to purchase. IH Systems, like its
competitors, negotiates pricing with the institutions acquiring the technology. IH Systems has
never offered personal compensation to hospital pharmacists making the purchasing decision.

Health robotics claimed: i.v.Station is smaller, faster and less expensive.

The facts: While the i.v.Station might cost less, we have not seen consistent pricing from Health
Robotics and are not aware of any customers paying list price. Health Robotics charges
separately for installation, training, and other related services that are included in the price of a
RIVA system. Regarding speed, IH Systems’ customer data and internal test data show that
RIVA is faster and is capable of performing more functions than the i.v.Station.

Health Robotics claimed: Canadian pharmacists have continuously rejected RIVA.

The facts: IH Systems’ Canadian distributor, Manrex, has no knowledge of Canadian
pharmacists ever having “rejected” RIVA; however, some hospitals have chosen other automated
IV technologies because of budget constraints or space limitations. By contrast, some
pharmacists have rejected other robotic pharmacy systems, even after using them. For example, a
West coast hospital had an i.v.Station, but removed it to install a RIVA.
If you are interested in learning more about RIVA, an IH Systems representative will be happy to
discuss how the system works, its numerous features and functions, and how it compares to other
available IV automation systems.

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NEWS | Press Release 2012
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