Hospira to Acquire Physiometrix

Hospira to Acquire Physiometrix
-- Acquisition Complements Hospira's Existing Portfolio; Supports Focus on
Patient Safety and Improved Hospital Productivity -- 


LAKE FOREST, Ill., June 1  /PRNewswire-FirstCall/ -- Hospira, Inc. (NYSE:HSP),
one of the largest hospital products manufacturers in the United States, and
Physiometrix, Inc. (NASDAQ:PHYX), a developer of non-invasive medical devices,
today announced Hospira will acquire the stock of Physiometrix for
approximately $23 million in cash plus the assumption of the company's debt,
which is projected to be approximately $1 million. The acquisition will broaden
Hospira's portfolio of products for the hospital operating room and intensive
care unit (ICU), providing anesthesia-monitoring devices used during surgical
and diagnostic procedures. Physiometrix is based in North Billerica, Mass., and
employs approximately 40 people.

"Acquiring Physiometrix and its technology supports Hospira's strategic focus
on helping our customers continuously enhance patient safety and reduce costs
in hospitals," said John Arnott, senior vice president, Global Commercial
Operations, Hospira. "Physiometrix's devices complement our product line, and
provide us with an entry into the fast-growing sedation monitoring market and a
core technology that could be further expanded over the long term."

The Physiometrix board of directors has unanimously approved the acquisition.
While it is subject to approval by Physiometrix's shareholders and customary
closing conditions, the acquisition is targeted to be completed in the third
quarter.

Hospira most recently provided 2005 financial projections on May 12, 2005, and
the company has not updated those projections since that time. This transaction
is not expected to impact those previously provided projections.

Physiometrix's portfolio of medical devices includes the PSA 4000, an
easy-to-use, real-time EEG (electroencephalogram), or brain-state monitor, that
features disposable sensors and a proprietary measurement parameter -- called
the Patient State Index -- that aids in monitoring the effects of anesthetic
agents. The PSA 5000, which has 510(k) clearance from the U.S. Food and Drug
Administration, is Physiometrix's next-generation monitor that has an improved
ergonomic design and is more powerful than existing models.

Role of Sedation Monitoring in Enhancing Patient Safety and Improving Hospital
Productivity

According to the American Society of Anesthesiologists, anesthesia is used in
approximately 40 million procedures annually. Typically, anesthesiologists use
combinations of medications to put the patient to sleep, prevent pain and
ensure that the patient does not move during surgery. To monitor the patient's
level of sedation once these drugs are administered, anesthesiologists
historically have relied on recommended drug dosages and patients' vital signs.
Physiometrix's technology provides a direct measure of the effect of anesthetic
agents. This enables anesthesiologists to more precisely administer the
appropriate dose of anesthesia, which can assist in minimizing the risk of
under- or over-medicating a patient, contribute to reducing side effects, and
help speed a patient's recovery and hospital discharge.

Physiometrix's PSA 4000 helps anesthesiologists better gauge the effect of
anesthesia on patients, allowing patients to emerge from sedation more rapidly
and safely following their procedures. The PSA 5000, which is easier to use, is
designed to enable anesthesiologists to measure this activity more quickly.
Additionally, the product technology has the potential to be expanded with
additional functionality. The launch of PSA 5000 is targeted for this year.

"Hospira is the ideal company to advance Physiometrix's goal of improving
patient outcomes," said John A. Williams, president and chief executive
officer, Physiometrix. "The increasing importance of sedation monitoring in
clinical settings, combined with Hospira's focus on serving the hospital
customer, will expand access to our technologies."

About Physiometrix

Physiometrix, Inc. designs, manufactures and markets non-invasive medical
products -- based on novel gel materials, sophisticated signal-processing
electronics technologies, and proprietary software -- for use in anesthesia-
monitoring during surgical procedures and in other medical settings, including
the intensive care unit. The company generated approximately $1.9 million in
2004 sales at the wholesale level primarily through a distribution agreement.
For more information, please visit the company's Web site at
http://www.physiometrix.com/.

About Hospira

Hospira, Inc. is a global specialty pharmaceutical and medication delivery
company dedicated to Advancing Wellness(TM) by developing, manufacturing and
marketing products that help improve the productivity, safety and efficacy of
patient care. With 70 years of service to the hospital industry, Hospira's
portfolio includes one of the industry's broadest lines of generic acute-care
injectables, which help address the high cost of proprietary pharmaceuticals in
hospitals; integrated solutions for medication management and infusion therapy;
and the leading U.S. injectable contract manufacturing business. Headquartered
in Lake Forest, Ill., north of Chicago, Hospira has approximately 13,000
employees and 14 manufacturing facilities worldwide. Hospira's news releases
and other information can be found at http://www.hospira.com/.

Where You Can Find Additional Information

Physiometrix will file a proxy statement and other documents concerning the
proposed merger transaction with the Securities and Exchange Commission (SEC).
Security holders are urged to read the proxy statement when it becomes
available and other relevant documents filed with the SEC because they will
contain important information about Physiometrix and the merger. A proxy
statement will be sent to shareholders of Physiometrix seeking their approval
of the transaction. Physiometrix security holders may obtain a free copy of the
proxy statement (when it is available) and other documents filed by
Physiometrix with the Commission at the Commission's Web site at
http://www.sec.gov/. The proxy statement and these other documents may also be
obtained for free from Physiometrix Investor Relations, Five Billerica Park,
101 Billerica Ave., North Billerica, Mass., 01862 or [phone].

Physiometrix and Hospira and their respective directors and executive officers
and other members of their management and their employees may be deemed to be
participants in the solicitation of proxies from the shareholders of
Physiometrix with respect to the transactions contemplated by the merger
agreement. Information about Physiometrix, Hospira and their respective
directors and officers can be found in Physiometrix's and Hospira's respective
Proxy Statements and Annual Reports on Form 10-K filed with the SEC. Additional
information regarding the interests of those persons and their respective
interests in the merger may be obtained by reading the proxy
statement/prospectus when it becomes available. This document will be available
free of charge at the Securities and Exchange Commission's Web site at
http://www.sec.gov/ and from Physiometrix.

 Private Securities Litigation Reform Act of 1995 -- A Caution Concerning
                        Forward-Looking Statements



Some statements in this news release may be forward-looking statements for
purposes of the Private Securities Litigation Reform Act of 1995. Hospira
cautions that these forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially from those
indicated in the forward-looking statements. Economic, competitive,
governmental, technological and other factors that may affect Hospira's
operations and may cause actual results to be materially different from
expectations include the risks and uncertainties set forth under the heading
"Item 1 Business -- Risk Factors" in Hospira's Annual Report on Form 10-K for
the year ended Dec. 31, 2004, filed with the Securities and Exchange
Commission, which are incorporated by reference. Hospira undertakes no
obligation to release publicly any revisions to forward-looking statements as
the result of subsequent events or developments. 

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DATASOURCE: Hospira, Inc.



CONTACT:  Media, Tareta Adams, [phone], or Financial Community,

Lynn McHugh, [phone], both of Hospira, Inc.



Web site:  http://www.hospira.com/

http://www.physiometrix.com/ 

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