The agreement, which represents approximately $100 million in annual sales, encompasses an extensive line of medical imaging products and services. VHA and UHC members will continue to have full access to NHD’s line of value-add distribution and service plans, including the Managed Inventory Program and CapSERVE annual service program.

Under the terms of the new agreement, members of HealthCare Purchasing Partners International (HPPI), another group purchasing organization owned by VHA and UHC, will have access to computed radiography (CR) and digital radiography (DR) service through NHD’s network of shareholder distributors.

"NHD looks forwarding to building on our already strong and successful relationship with Novation," said George Walker, Board Chairman of NHD. “Our Shareholder distributors are committed to bringing the highest level of local service and support to VHA, UHC, and HPPI member facilities”

About NHD - NHD, Inc. is comprised of 27 of the largest and most advanced independent distributors of medical imaging equipment, supplies, and service in the U.S. The distributors that own NHD cover the United States with over 100 service and distribution centers, a staff of over 700 service technicians, and over 225 professional sales consultants and inside customer service representatives. The distributors that make up NHD average over thirty years in business in the regions that they serve, maintaining an unparalleled reputation for local commitment to service. For additional information on NHD, please visit our website – www.nhd.net

About Novation - Based in Irving, Texas, Novation was established in January 1998 through a combination of the supply programs of VHA and UHC, two national health care alliances. Novation serves the purchasing needs of more than 2,300 members and affiliates of VHA and UHC. These organizations used Novation contracts to purchase more than $23 billion in supplies in 2004.