ROCHE DIAGNOSTICS AWARDED CHEMISTRY AND IMMUNOCHEMISTRY CONTRACTS BY NOVATION®

Indianapolis, Indiana-June 27, 2002-Roche Diagnostics Corporation announced today that the company has signed two three-year contracts with Novation, the supply company of VHA Inc. and University Health System Consortium (UHC), one for chemistry products and one for immunochemistry products. Under the agreements, Roche will supply these products to the more than 2,300 VHA and UHC hospitals and healthcare facilities served by Novation. Both contracts have two one-year renewal options, extending the possible length of the agreements through June 30, 2007.

VHA and UHC member total spending on chemistry and immunochemistry products is estimated to be $625 million annually. The new contracts, which are effective from July 1, 2002, through June 30, 2005, expand Roche's contracted portfolio that originated when Novation awarded Roche a glucose monitoring agreement in late 2001. The awards were based on Novation's competitive bid process that is open to all interested suppliers and driven by significant member input.

"Our confidence in Roche Diagnostics as an established and committed leader continues to grow," said Bob Benson, Vice President of Operations at Novation. "Over the past year, their products and commitment to customer service have helped alliance members improve health management while saving valuable time and money."

"Roche Diagnostics is delighted to strengthen our partnership with Novation," said Martin Madaus, President and CEO of Roche Diagnostics Corporation. "These new contracts solidify our relationship and give us additional opportunities to provide VHA and UHC members with products and services that enhance patient care."

Under the chemistry contract, Roche will supply VHA and UHC members with MODULAR® ANALYTICS Systems, the COBAS Integra® 400 plus System and the COBAS Integra® 800 System, offering a broad range of solutions to meet each laboratory's specific needs. The immunochemistry agreement covers Elecsys® 1010, Elecsys 2010, and MODULAR ANALYTICS E 170 systems, providing standardization of the electrochemiluminescence (ECL) technology across laboratories. Also included is Roche's extensive test menu for chemistry and immunodiagnostics, the broadest in the industry.

"Roche's broad product portfolio meets the diverse needs of VHA and UHC members, many of whom have already chosen to adopt Roche chemistry and immunochemistry platforms," said Sherry Dobis, Novation Lab Program Director. "By offering options that handle a wide range of test volumes, locations, and menu requirements, Roche systems enable alliance members to address immediate needs while also keeping future needs in mind."

"This award is especially significant in light of current trends toward integrating chemistry and immunochemistry to improve productivity and efficiency," commented Dick Aderman, Senior Vice President and General Manager of Roche Centralized Diagnostics. "Roche Diagnostics is committed to working with VHA and UHC members to design and implement integration strategies to best suit individual laboratory needs."

Based in Irving, Texas, Novation was established in January 1998 through a combination of the supply programs of VHA and UHC, two national healthcare alliances. Novation serves the purchasing needs of more than 2,300 members and affiliates of VHA and UHC. Novation also serves more than 5,400 members of HealthCare Purchasing Partners International (HPPI), another group purchasing organization owned by VHA and UHC. The largest supply chain management company in healthcare, Novation manages more than $19 billion in annual purchases for VHA, UHC, and HPPI members. For more information, go to www.novationco.com.

VHA, also based in Irving, is a nationwide network of more than 2,200 leading community-owned healthcare organizations and their physicians. It comprises 26% of the nation's community hospitals. For more information, visit www.vha.com. UHC, based in Oak Brook, Illinois, and representing 76% of the academic medical centers in the United States, is an alliance of 87 academic medical centers and 102 associate members. For more information, visit www.uhc.edu. HPPI, an Irving, Texas-based group purchasing organization that manages more than $1 billion in annual purchases, markets its services to organizations that do not belong to VHA or UHC. For more information, visit www.hppigpo.com.

Headquartered in Basel, Switzerland, Roche is one of the world's leading research-oriented healthcare groups in the fields of pharmaceuticals, diagnostics, and vitamins. Roche's products and services address prevention, diagnosis, and treatment of diseases, thus enhancing well-being and quality of life. Roche's Diagnostics Division, the world leader in in-vitro diagnostics with a uniquely broad product portfolio, supplies a wide array of innovative testing products and services to researchers, physicians, patients, hospitals, and laboratories worldwide. Roche Diagnostics Corporation, based in Indianapolis, is the North American headquarters for the diagnostics business of the company. Roche Diagnostics' website is located at www.roche-diagnostics.com.

COBAS INTEGRA, ELECSYS, and MODULAR are trademarks of a Member of the Roche Group.