Date: May 25, 2004

Subject: ON-Q First to Receive Expanded Indications for Use - A New Best Practice

We are excited to advise you about a significant event in the evolution of the ON-Q brand. ON-Q PainBuster and ON-Q C-bloc are now cleared for expanded indications.

Specifically,

• By adding ON-Q to a patients' post-surgical pain treatment, patients will get significantly better pain relief than with narcotics alone.
• When ON-Q is used with narcotics, it significantly reduces the amount of narcotics needed to relieve pain following surgery.

We submitted key studies from various surgical specialties as clinical evidence validating these new indications.

With these key studies the data also demonstrated reduced length of stay, decreased cost, increased patient satisfaction and a quicker return to normal function.*

We believe that this major advancement solidifies ON-Q as better than today's standard of care (narcotics alone). These indications confirm ON-Q as a new best practice.

In addition, these expanded indications enable I-Flow to label ON-Q kits for specific surgeries in the following areas:

• Cardiovascular/Cardiothoracic
• General
• OB/GYN
• Orthopedic

Currently nearly 700 hospitals have ON-Q available and are now receiving the clinical and economic benefits as an emerging standard of care.

For more information regarding ON-Q, please call us at 800-448-3569.

*For a list of published studies, visit http://www.iflo.com/clinical_library.php