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ZEVEX International Executes European Maintenance and Service AgreementSalt Lake City, Utah, USA - December 21, 2005 - ZEVEX International, Inc., (NASDAQ: ZVXI) announced today that it has entered into an agreement with the European division of a large, multi-national medical device firm (“Service Provider”), effective December 1, 2005. This agreement appoints the Service Provider as ZEVEX’s authorized service provider for the repair and maintenance of enteral feeding pumps that are distributed by the affiliates of Royal Numico’s Clinical Nutrition Division in Europe under the brand name, “Nutricia.” Through this agreement, ZEVEX will fulfill its obligations to provide maintenance and repair services to Nutricia’s customers in Europe pursuant to ZEVEX’s existing maintenance and service agreement with Nutricia. Simultaneously with the execution of this new agreement, ZEVEX also executed a revised maintenance and service agreement with Nutricia. Pursuant to this revised agreement, ZEVEX expects to receive more than $1 million in annual, incremental revenue from Nutricia beginning in 2006, which is additive to the $7 million in annual revenue that ZEVEX previously projected to receive from the manufacture and sale of pumps and accessories and the provision of maintenance and repair services to Nutricia under related agreements. Of this projected $1 million of additional revenue, ZEVEX will pay a portion of it to the Service Provider for its services and will retain a portion as profit. David McNally, President and CEO of ZEVEX, said, “We are pleased to enter into this strategic agreement. Our Service Provider possesses a modern facility in Germany that is staffed by a very capable team with an excellent reputation. Notably, this company has historically provided similar maintenance and repair services for Nutricia’s customers in the German market. Because of this, they are the logical choice as our service provider for all of Europe. Under this new agreement, our Service Provider will provide maintenance and repair services for Nutricia’s existing enteral feeding pumps in the European market, as well as for the Flocare® Infinity® enteral feeding pumps that are manufactured by ZEVEX and that Nutricia began selling in Europe in August of this year. This agreement allows us to meet our obligations to Nutricia without having to establish our own European service facility.” ABOUT ZEVEX Forward-Looking Statements |
published date: 06-02-2006 |


