FOR IMMEDIATE RELEASE

Gary Johnson
VP Marketing and Marketing Services
MedAssets, Inc.
Phone: 678/323-2528
E-mail: gjohnson@medassets.com

SISTERS OF MERCY HEALTH SYSTEM IMPLEMENTS NEW SUPPLY CHAIN MODEL
New Entity, ROi, Will Support Group Purchasing Activities

ST.LOUIS, MO (January 15, 2003) - The Sisters of Mercy Health System (Mercy) has announced plans to expand its self-contracting model as part of its long-term supply chain strategy. To prepare for direct contracting with manufacturers, Mercy has established a for-profit entity, Resource Optimization & Innovation (ROi), which will serve as the mechanism for group purchasing activities.

Mercy has been working closely with its current group purchasing organization, MedAssets HSCA, to develop and implement a transition plan to take on this next evolutionary step. ROi will soon begin the process of establishing direct contracting relationships with selected manufacturers and will transfer Mercy's purchasing volume from MedAssets HSCA's portfolio to one administered by ROi. The transfer should be complete by December 2004.

"Our relationship with MedAssets HSCA has been mutually beneficial and continues to be strong today. The MedAssets HSCA team has consistently provided exceptional service to Mercy in meeting our group purchasing needs, and their support is key to helping us in this transition," stated Lynn Britton, vice president, Sisters of Mercy Health System. "Our decision to end our group purchasing relationship with MedAssets HSCA at the close of 2004 simply represents the next step in Mercy's long-term strategy to assume greater responsibility for our supply chain operations."

Rand Ballard, president of MedAssets HSCA, stated, "Some health care systems may choose different supply chain management models as they evolve, including total self-contracting and supply chain logistics. We have a strong and effective relationship with Mercy as we always have, and we continue to support our customers who believe self-contracting adds value. We provide the flexibility in our management philosophy and our day-to-day operational model to help Mercy implement such a strategy."

Over the past several years, Mercy has moved aggressively to improve its supply chain operations through the recruitment of an experienced team of professionals focused on a number of initiatives. Two key tactical initiatives are nearing full deployment: the implementation of an enterprise-wide materials management information system and the opening of an 83,000-square-foot distribution facility servicing Mercy operations in five states.

"These infrastructure elements serve as the foundation to support our supply chain management plan," Britton said. "Simply stated, our goal is to be the lowest priced / highest margin customer of our key suppliers."

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About Mercy
The Sisters of Mercy Health System, based in St. Louis, Missouri, operates hospitals, physician practices, outpatient clinics, health plans, and related health and human services in a seven-state area including Arkansas, Kansas, Louisiana, Mississippi, Missouri, Oklahoma and Texas. Its members include 19 acute care hospitals providing nearly 4,500 licensed beds, a heart hospital, a psychiatric hospital, a managed care subsidiary (Mercy Health Plans), physician practices, outpatient care facilities, home health programs, skilled nursing services and long-term care facilities. Services are provided by approximately 28,000 co-workers and 4,000 physicians who are employed or practice at Mercy facilities.

About MedAssets HSCA
MedAssets HSCA, a subsidiary of MedAssets, Inc., is the largest independent group purchasing organization in the country, servicing more than 16,000 health care providers nationwide with purchasing power approaching $7 billion in gross throughput. It is MedAssets HSCA's mission to be the market-leading, customer-oriented supply chain and contract services company, focused on maximizing the financial performance of health care institutions.

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