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Medical Action Industries Earns 2011 Service Excellence Award For Providing Superior Service To VHA Members

Medical Action Industries Inc., a leading supplier of medical and disposable surgical products today announced that VHA Inc., the national health care network, honored Medical Action Industries as the Non-Pharmacy Supplier of the Year at its Annual Leadership Conference, May 15-17, in San Diego, Calif. Medical Action is a long-time supplier of Novation, VHA’s health care supply contracting company.

“We value Medical Action as an important supplier to the members we serve and a long standing partner to Novation. Medical Action participates in our high value initiatives including NOVAPLUS, Standardization and our new Committed Program,” said Pete Allen, senior vice president, sourcing operations, Novation. “This award is in recognition of Medical Action’s service excellence.” Candidates for the award are recommended and selected based upon their sales interactions with VHA members, overall customer satisfaction, and responsiveness to VHA staff and members.

As the market leader in patient bedside products, OR towels, laparotomy sponges, and minor procedure kits and trays, Medical Action offers VHA members the ability to choose from a comprehensive portfolio of high quality products and programs that drive optimal clinical outcomes and operational efficiencies. Medical Action’s dedicated and highly trained sales organization provides customized solutions to clinicians and economic buyers. “This award acknowledges our commitment to being the trusted partner providing innovative solutions to the health care community,” stated Paul D. Meringolo, Chairman and CEO. “We continue to focus on collaborating with healthcare providers for the purpose of improving quality care and enhancing the patient experience. We are proud that this award is a testament to our efforts.”

About Medical Action Industries Inc. – Medical Action is a diversified manufacturer and provider of disposable medical products with leadership positions in multiple market segments. Its products are marketed primarily to acute care facilities and ambulatory surgery centers in domestic and specific international markets. Medical Action’s products are marketed nationally by its direct sales professionals and an extensive network of healthcare distributors. The company has preferred vendor agreements with national and regional distributors, as well as sole and multi-source agreements with group purchasing organizations. Medical Action’s common stock trades on the NASDAQ Global Select Market under the symbol MDCI and is included in the Russell 2000 Index.

About VHA – VHA Inc., based in Irving, Texas, is a national network of not-for-profit health care organizations that work together to drive maximum savings in the supply chain arena, set new levels of clinical performance and identify and implement best practices to improve operational efficiency and clinical outcomes. In 2010, VHA delivered record savings and value of $1.7 billion to members. Formed in 1977, VHA serves nearly 1,350 not-for-profit hospitals and more than 30,000 non-acute care providers nationwide, coordinating delivery of its programs and services through its 16 regional offices. VHA has been listed as one of the best places to work in health care by Modern Healthcare since 2008 and one of the best places to work in IT by Computer World since 2007.

Founded in 1998, Novation is the leading health care supply contracting company for more than 25,000 members of VHA Inc. and the University HealthSystem Consortium (UHC), two national health care alliances, and 5,500 members of Provista, LLC, representing more than 30,000 sites. Novation provides alliance members sourcing and information and data services. Based in Irving, Texas, Novation develops and manages competitive contracts with more than 600 suppliers. VHA, UHC and Provista members used Novation contracts to purchase nearly $40 billion in 2010.

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